Closing Costs Calculator
It itemizes what a buyer pays at closing — origination, appraisal, title, escrow, recording and prepaid items — and adds the down payment for total cash to close.
Total cash to close
$93,005
| Item | Amount |
|---|---|
| Loan originationLender's fee for writing the loan | $3,200 |
| AppraisalLender's valuation of the property | $600 |
| Home inspectionOptional but rarely worth skipping | $450 |
| Title insuranceProtects against defects in the title | $2,000 |
| Escrow and settlementClosing agent's fee | $1,200 |
| Recording and transferGovernment fees, vary sharply by state | $1,600 |
| Prepaid interestInterest from closing to the first full month | $855 |
| Homeowners insurance escrowFirst year up front plus two months in reserve | $2,100 |
| Property tax escrowThree months held in reserve | $1,000 |
| Total closing costs | $13,005 |
Loan amount
$320,000
Down payment
$80,000
Closing costs
$13,005
% of price
3.25%
Cash to close
$93,005
Estimate only. Transfer taxes and title costs vary enormously by state — ask each lender for a Loan Estimate, which is standardized so the figures can be compared directly.
What it calculates
It itemizes what a buyer pays at closing — origination, appraisal, title, escrow, recording and prepaid items — and adds the down payment for total cash to close.
Why it matters
Closing costs typically run 2–5% of the purchase price and are due in cash on the day. Buyers who budget only for the down payment come up short at the worst moment.
Who it's for
First-time buyers working out how much cash they need, and anyone comparing a lender's estimate against a neutral benchmark.
Formula
- P
- Purchase price
- L
- Loan amount after the down payment
- F
- Lender and third-party fees
- PP
- Prepaid items — interest, insurance and tax escrow
Worked example
$400,000 home with 20% down
- 1Loan amount = 400,000 − 80,000 = $320,000
- 2Origination at 1% of the loan = $3,200
- 3Title, escrow, recording and appraisal add several thousand more
- 4Prepaid interest, insurance and tax escrow complete the total
About $13,000 of closing costs, roughly $93,000 cash to close
How the closing costs calculator works
Closing costs split into three groups. Lender fees, such as origination, scale with the loan. Third-party fees for appraisal, title insurance, settlement and recording scale with the property price or are flat. Prepaid items are not really fees at all: they are your own money moved forward, covering interest from closing to the first full month plus an insurance and tax reserve the servicer holds in escrow. Only the first two groups are genuinely negotiable, which is why comparing loan estimates line by line is worth real money.
Closing costs split three ways. Lender fees scale with the loan, third-party fees with the property, and prepaid items are not fees at all — they are your own money moved forward into an escrow reserve.
Only the first two groups are genuinely negotiable, which is why comparing Loan Estimates line by line between lenders is worth real money.
Common mistakes
- Budgeting for the down payment alone and being short of cash at closing.
- Treating prepaid escrow as a fee — it is your own money, held in advance.
- Not comparing loan estimates between lenders, where origination varies most.
- Overlooking transfer taxes, which differ enormously between states.
Tips and best practice
- Ask for a Loan Estimate from at least three lenders; the form is standardized to be comparable.
- Seller concessions can cover part of the closing costs and are worth negotiating for.
- Title insurance is often shoppable even when the lender suggests a preferred provider.
Frequently asked questions
How much are closing costs?
Typically 2–5% of the purchase price for a conventional loan, before the down payment. On a $400,000 home that is roughly $8,000 to $20,000 in cash.
Who pays closing costs, buyer or seller?
Most fall on the buyer, though sellers commonly pay agent commissions and, in some markets, contribute toward the buyer's costs as a negotiated concession.
Can closing costs be rolled into the loan?
Sometimes, through a lender credit in exchange for a higher interest rate. It reduces cash needed at closing but costs more across the life of the loan.
What is prepaid interest at closing?
Interest covering the days between your closing date and the start of the first full month. Closing late in the month reduces it.
Are closing costs negotiable?
Lender fees and some third-party services are. Government recording and transfer taxes are not, and prepaid escrow is simply your own money moved forward.
Related calculators
Methodology & trust
- Formula source
- Consumer Financial Protection Bureau Loan Estimate categories
- Last updated
- 2026-07-28
- Privacy
- Every calculation runs in your browser. No inputs are sent to a server or stored.