Closing Cost Calculator: Estimate Closing Costs for a House

The total shown is an estimate of every dollar due at the closing table beyond the purchase price itself: lender fees for originating and underwriting the loan, third-party charges for services like the appraisal and title search, government recording and transfer charges, and prepaid escrow for taxes, insurance and interest. Add the down payment and you get total cash to close.

Start with the purchase price and down payment; the loan amount and every percentage-based fee follow from them. Then replace the default fee amounts with real numbers as you get them: your lender's Loan Estimate covers lender charges and prepaids, and a title company or attorney can quote settlement and title insurance for your county.

Transfer taxes differ dramatically between states — some charge nothing, others more than 2% of the price, and in some markets the seller customarily pays. Check local practice before assuming the buyer bears it.

If the seller has agreed to contribute toward closing costs, enter that credit; it reduces the buyer's cash requirement but is capped by loan program rules.

Loan amount = purchase price − down payment

Percentage-based fees are applied to the base they belong to:

• Origination and discount points are a percentage of the loan amount.
• Title insurance and transfer tax are a percentage of the purchase price.

Prepaid interest covers the days between closing and the start of the first full month:

Prepaid interest = loan × annual rate ÷ 365 × days remaining in the month

Cash to close = down payment + lender charges + services + title & government + prepaids − seller credit

On a $400,000 purchase with 20% down, the loan is $320,000. A 1% origination fee is $3,200, and $1,200 of underwriting brings lender charges to $4,400. Appraisal, inspection and survey add $1,400.

Title insurance at 0.5% of price is $2,000; with $1,500 of settlement fees, a 0.5% transfer tax ($2,000) and $150 of recording, title and government total $5,650. Six months of tax escrow is $2,400, the first insurance premium is $1,800, and 15 days of prepaid interest at 6.5% is about $855 — $5,055 of prepaids.

Total closing costs come to roughly $16,500, about 4.1% of the price. Adding the $80,000 down payment gives cash to close of about $96,500.

Loan amount

Origination fees and discount points scale with the loan amount, so a larger loan or smaller down payment raises these lender charges.

State and county

Transfer taxes and recording fees are set locally and range from zero to well over 1% of the purchase price depending on jurisdiction.

Title company and attorney requirements

Some states require attorney involvement in closings, adding legal fees; title insurance rates are also regulated differently by state.

Escrow account setup

Lenders typically require two to six months of property tax and a full year of insurance upfront to seed the escrow account, which adds meaningfully to cash needed at closing.

Time of month you close

Prepaid interest covers the days between closing and the first of the next month, so closing near the start of a month increases this line item.

• Budgeting only for the down payment

  Closing costs are a separate, sizable cash requirement — often thousands of dollars beyond the down payment.

• Assuming national averages apply locally

  Transfer taxes and customary buyer/seller cost splits vary enormously by state; a national average estimate can be far off for your market.

• Not comparing the Loan Estimate across lenders

  The Loan Estimate format exists specifically so you can compare lender charges line by line — skipping that comparison can cost thousands.

• Missing the Closing Disclosure review window

  You are entitled to review the Closing Disclosure for at least three business days before closing; use that time to catch discrepancies from your Loan Estimate.

• Overlooking loan-program-specific fees

  FHA upfront mortgage insurance and the VA funding fee are real closing costs for those programs and are not included in a generic estimate.

• Ask for the seller to cover part of closing costs as a negotiating point, especially in a buyer's market.
• Shop separately for title, settlement and inspection services where your state allows it — lenders cannot require you to use a specific provider for these.
• Compare origination charges across at least two or three lenders using their Loan Estimates.
• Confirm with your closing agent which party customarily pays transfer tax and owner's title insurance in your state.
• Keep cash reserves beyond the closing cost estimate; last-minute adjustments to prepaid items are common.

This estimate uses flat percentages and typical amounts as placeholders. Your actual Loan Estimate and Closing Disclosure will reflect your specific lender's fees, your state's transfer tax and recording schedule, your title company's rates, and any program-specific charges such as FHA mortgage insurance or the VA funding fee — all of which can move the total meaningfully in either direction.

What this calculator assumes

• The buyer pays transfer tax and owner's title insurance, which is not the custom in every market.
• The lender collects the full first-year insurance premium and several months of tax escrow at closing.
• Prepaid interest is calculated on a 365-day year.
• The seller credit is applied only to closing costs, not to the down payment.

What it does not account for

• HOA transfer and capital contribution fees, which some associations charge.
• Rate lock extension fees, courier fees and other lender-specific line items.
• Prorated property tax and HOA credits between buyer and seller.
• Government-backed loan fees such as the VA funding fee or FHA upfront mortgage insurance premium.

• Consumer Financial Protection Bureau — Closing costs — Explains the Loan Estimate and Closing Disclosure and required timing.
• HUD — Buying a home — General guidance on the homebuying and closing process.