When you buy a home, you need more than just a down payment. You also pay closing costs, which are the fees and prepaid expenses required to finalize the mortgage and transfer ownership. Those costs usually come in a lump sum on closing day, so it is important to plan for them early.
Closing Cost Calculator
How to use this closing cost calculator
This closing cost calculator is designed to give home buyers a quick, realistic estimate of their cash needs for closing. Rather than trying to predict every single fee, it uses a simple percent-of-price approach that you can adjust to match estimates from your lender.
Here is how each input works and what it represents:
- Home purchase price ($): The total price you expect to pay for the home, before your down payment or credits. For example, if you plan to buy a house listed at $400,000, enter 400000 here.
- Down payment (% of price): The percent of the purchase price you plan to pay up front. Many buyers put down somewhere between 3% and 20%, depending on their loan program and budget.
- Closing cost estimate (% of price): A simple estimate of fees and prepaid costs as a percentage of the purchase price. Buyer closing costs often land in the 2%–5% range of the home price, though they can be higher or lower in some markets.
- Seller or lender credits ($): Any credits that reduce what you pay at closing, such as negotiated seller concessions or lender credits used to offset closing costs.
As you change the numbers, the calculator updates automatically, with no separate “Calculate” button. If you enter values that do not make sense, such as a purchase price that is too low or a closing cost percentage that is extremely high, the tool shows an error message instead of misleading results.
Suppose you are buying a $400,000 home with a 10% down payment and estimate your buyer closing costs at 4% of the price.
- Home purchase price: $400,000
- Down payment: 10% ($40,000)
- Closing cost estimate: 4% ($16,000)
- Seller or lender credits: $0
In this scenario, your estimated cash to close would be about $56,000: $40,000 for the down payment and $16,000 for buyer closing costs. If you negotiated $5,000 in seller credits, your estimated closing costs would drop to about $11,000 and your cash to close would fall to roughly $51,000.
Tip: Once you receive a Loan Estimate from a lender, update the calculator with your exact purchase price and adjust the closing cost percentage until the estimated costs roughly match the lender’s numbers. That can help you compare offers from different lenders on an apples-to-apples basis.
What is included in typical closing costs?
Closing costs are more than just a single fee. They are a collection of lender charges, third-party services, government fees, and prepaid expenses you must pay to complete the transaction. For a typical home buyer, these costs often add up to roughly 2%–5% of the home’s purchase price, though the exact amount depends on your market and loan type.
Common buyer closing costs include items such as:
- Lender fees: Origination charges, underwriting fees, processing fees, and in some cases discount points paid up front to reduce your interest rate.
- Appraisal and inspection: An appraisal ordered by your lender to confirm the home’s value, plus optional or required home inspections to check the property’s condition.
- Title search and title insurance: Fees to research the property’s title history and issue a lender’s title insurance policy, and in some cases an owner’s policy as well.
- Government and recording fees: Recording fees, transfer taxes, and other local charges associated with transferring ownership and recording the new deed or mortgage.
- Prepaid property taxes and insurance: Property tax escrows, homeowners insurance premiums, and in some cases prepaid interest from the closing date to the end of the month.
Because each of these categories can vary by lender and location, it is difficult for any online calculator to estimate every line item with precision. That is why many experts describe closing costs in percentage terms: roughly 2%–5% of the purchase price for buyers in many U.S. markets. Your lender’s Loan Estimate and Closing Disclosure will give you the itemized, official numbers for your specific loan.
| Home price | 2% closing costs | 3.5% closing costs | 5% closing costs |
|---|---|---|---|
| $250,000 | $5,000 | $8,750 | $12,500 |
| $400,000 | $8,000 | $14,000 | $20,000 |
| $600,000 | $12,000 | $21,000 | $30,000 |
Note: These examples assume buyer closing costs of 2%, 3.5%, and 5% of the purchase price. Your own costs may fall outside this range depending on your loan program, local taxes, and whether you pay discount points or receive credits from the seller or lender.
How to plan for cash to close and reduce closing costs
For many buyers, the most important number is not just the fee total, but the cash they must bring to the closing table. Cash to close generally includes your down payment, plus closing costs, minus any credits paid on your behalf. Understanding that number helps you avoid last-minute surprises and decide how much to keep in savings for emergency cushions or moving expenses.
Here are practical ways to use the calculator and the numbers from your lender to plan and potentially lower what you pay at closing:
- Check whether your savings are enough for the full cash to close: After you enter your purchase price and down payment, pay attention to the “cash to close” estimate. If it is higher than expected, consider whether you can increase your savings, adjust your down payment, or look for a slightly lower-priced home.
- Compare closing cost ranges from multiple lenders: One lender may charge higher origination fees but offer lower third-party fees or credits. Use each Loan Estimate to update the calculator so you can compare the cash-to-close impact of each option.
- Ask about seller concessions: In some markets, sellers may be willing to cover part of your closing costs in exchange for a higher sale price or a faster closing. If you negotiate credits, plug them into the calculator to see how much they reduce your cash to close.
- Decide whether to pay discount points: Paying points can lower your interest rate, but it increases your closing costs. Use the calculator together with a mortgage payment calculator to see how paying points affects both your upfront costs and your long-term monthly payments.
- Review “services you can shop for”: On the Loan Estimate, some items such as title services or pest inspections can be shopped. Getting a few quotes may reduce these costs without changing your loan.
Important: This calculator is for education and planning, not a loan offer. Your actual closing costs and cash to close will come from your lender’s Loan Estimate and Closing Disclosure. Always review those forms carefully and ask questions about any fees you do not understand.
Frequently Asked Questions (FAQs)
How accurate is a closing cost calculator?
A closing cost calculator provides an estimate based on simple assumptions, such as closing costs being a percentage of your home’s price. It cannot predict your exact fees, because each lender, state, and loan program is different. Use it as a planning tool to get in the right ballpark, then rely on your official Loan Estimate and Closing Disclosure for final numbers.
Who usually pays closing costs, the buyer or the seller?
Both buyers and sellers have closing costs, but buyers generally pay most of the loan-related fees such as origination, appraisal, and title services. Sellers typically pay real estate agent commissions and may pay transfer taxes or other fees. In some cases, sellers agree to cover part of the buyer’s closing costs, known as seller concessions.
Can I roll closing costs into my mortgage?
In some situations, you may be able to roll certain closing costs into your loan amount instead of paying them in cash, especially on refinances. This reduces your upfront cash to close but increases the amount you borrow and the interest you pay over time. Your lender can explain which costs can be financed and how that affects your monthly payment.
Do I always have to pay closing costs out of pocket?
Not always. Some lenders advertise low or no-closing-cost options where they cover part of the fees in exchange for a higher interest rate. You might also receive seller credits, lender credits, or assistance programs that offset some costs. However, you will generally still pay them indirectly through a higher loan balance or rate, so compare the long-term effect carefully.
When will I know my final closing cost amount?
Your lender must provide a Loan Estimate within a few business days of your application and a Closing Disclosure at least three business days before closing. The Closing Disclosure breaks down all of your final closing costs and shows exactly how much cash you must bring to closing or have available in verified funds.