Mortgage & Real Estate

Closing Costs Calculator

Estimate all buyer and seller closing costs on a home purchase. Know exactly how much cash you need to bring to closing, including down payment, lender fees, title, escrow, prepaids, and more.

Property Details

$400,000

Down payment: $80,000 (20.0%)

Buyer Closing Cost Details

1.0% = $3,200
3 months

Cash Needed to Close

$81,555

After $8,000 earnest money credit

Down Payment

$80,000

Closing Costs

$9,555

% of Purchase

2.4%

Prepaids & Escrow

$3,555

Cost Breakdown

Loan Origination Fee
$3,200
Appraisal Fee
$500
Home Inspection
$400
Title Insurance (Buyer)
$800
Title Search
$300
Escrow / Settlement Fee
$600
Recording Fees
$200
Prepaids & Escrow Setup
$3,555
Total$9,555

Negotiation Tip

Buyers can ask for up to 3% in seller concessions on conventional loans (6% on FHA/VA). This reduces your cash to close from $81,555 to approximately $69,555.

What are Closing Costs?

Closing costs are the fees and expenses paid at the settlement of a real estate transaction, over and above the property purchase price. Buyer closing costs typically total 2–5% of the loan amount and include lender fees, title insurance, escrow charges, prepaid items, and government recording fees. Seller closing costs are usually 6–10% of the sale price, dominated by real estate agent commissions.

Formula:

Cash to Close = Down Payment + Total Closing Costs − Earnest Money Credit

Your total cash needed at the closing table is the sum of your down payment and all closing cost line items, reduced by any earnest money already deposited and seller concessions negotiated.

How to Use This Closing Costs Calculator
  1. 1

    Enter the home purchase price and your loan amount to calculate down payment automatically

  2. 2

    Toggle between Buyer and Seller view to see each party's costs

  3. 3

    Adjust individual fee line items to match your actual lender estimates

  4. 4

    Set prepaid escrow months (typically 2–4 months for taxes and insurance)

  5. 5

    Enter your earnest money deposit — it will be credited against cash to close

  6. 6

    For sellers, enter agent commission, transfer tax rate, and outstanding mortgage payoff balance

Why Closing Costs Matters
  • Buyers often underestimate closing costs — not knowing the full cash requirement can cause last-minute financing problems
  • Understanding which costs are negotiable (origination fees, seller concessions) can save thousands
  • Sellers need to accurately estimate net proceeds to plan their next purchase or investment
  • Prepaids and escrow setup (taxes, insurance) are often overlooked but add $3,000–$7,000 to cash-to-close
Typical Closing Cost Ranges
2% – 5%
Buyer Closing Costs
Of purchase price; higher % on lower-priced homes
6% – 10%
Seller Closing Costs
Mostly agent commissions (5–6%) plus title and taxes
2.5% – 3%
Agent Commission
Per side; total is typically 5–6% split between agents
0.5% – 1%
Origination Fee
Of loan amount; higher at some lenders
$500 – $2,000
Title Insurance
Varies by state and purchase price
💡 Pro Tips
  • Get a Loan Estimate (LE) within 3 days of applying — lenders must disclose all fees, making comparison easy
  • Ask the seller for concessions (up to 3% conventional, 6% FHA) to cover your closing costs
  • Closing late in the month reduces prepaid interest — fewer days until month-end means less interest owed upfront
  • No-closing-cost mortgages shift fees into a higher rate — run the break-even math before accepting
  • Some states (NY, PA, FL) have higher transfer taxes — factor this in when budgeting

Have questions about using this calculator? Check out our financial guides or contact us for help.

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Frequently Asked Questions

How much are closing costs typically?

Buyer closing costs typically range from 2% to 5% of the purchase price. On a $400,000 home, that's $8,000 to $20,000. Seller closing costs are usually 6% to 10% of the sale price, with real estate agent commissions making up the largest portion (typically 5-6% total).

What is included in closing costs?

Buyer closing costs include loan origination fees, appraisal, home inspection, title insurance, title search, escrow/settlement fees, recording fees, prepaid interest, homeowners insurance premium, and property tax escrow. Sellers typically pay real estate commissions, title insurance for the buyer, transfer taxes, and any negotiated credits.

Can closing costs be rolled into the mortgage?

Some closing costs can be financed into the loan through a 'no-closing-cost' mortgage, but the lender typically offsets this with a higher interest rate. You can also negotiate for the seller to pay some or all of your closing costs as a seller concession, up to limits set by your loan type.

What is an earnest money deposit and does it count toward closing costs?

Earnest money is a good-faith deposit (typically 1-3% of purchase price) paid when you make an offer. It is credited toward your closing costs or down payment at closing, so it reduces the cash you need to bring on closing day.

Are closing costs tax deductible?

Most closing costs are not immediately deductible. However, mortgage points paid to lower your rate are generally deductible, and prepaid property taxes and mortgage interest can be deducted. For investment properties, many closing costs can be added to the cost basis and depreciated over time.

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