acalculator

How much are my closing costs?

Add up the closing costs of buying a home, in the same sections as your Loan Estimate, and see the cash you need at closing.

Your numbers

An example rate, not today’s rate. Use the rate your lender quotes.
Prepaids and escrow
Total closing costs
$10,679.79

Buying a $400,000.00 home with $80,000.00 down costs $10,679.79 at closing, so you need $90,679.79 to close.

Share of the price
2.67%
Cash to close
$90,679.79
Origination charges and points
$3,200.00
Services
$3,500.00
Taxes and government fees
$150.00
Prepaids
$2,354.79
Initial escrow deposit
$1,475.00
Loan amount
$320,000.00

Total closing costs: $10,679.79. Buying a $400,000.00 home with $80,000.00 down costs $10,679.79 at closing, so you need $90,679.79 to close.

Where do the closing costs go?

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Adds up the closing costs of a home purchase in the sections of the Loan Estimate: lender charges, services, government fees, prepaid interest and insurance, and the escrow deposit, with the cash to close.

Example with the default inputs (Home price $400,000.00, Down payment $80,000.00, Interest rate 6.5%, Origination charges 1%, Discount points 0, Appraisal, title, and other services $3,500.00, Recording fees $150.00, Transfer tax paid by you 0%, Seller and lender credits $0.00, Days of prepaid interest 15, Home insurance (per year) $1,500.00, Property tax (per year) 1.1%, Months of escrow deposit 3): Buying a $400,000.00 home with $80,000.00 down costs $10,679.79 at closing, so you need $90,679.79 to close.

Method: total = (origination % + points) × loan + services + recording + transfer % × price + a year of insurance + loan × rate ÷ 365 × days + (monthly tax + monthly insurance) × escrow months.

  • Every fee is an amount you enter; the defaults are examples, not quotes. Fees and transfer taxes vary by lender and place.
  • Prepaid interest is the loan × the yearly rate ÷ 365 for each day; the first year of insurance is paid at closing.
  • The escrow deposit is whole months of property tax and insurance; prepaid property tax and HOA transfer fees are not included.
  • Credits pay closing costs only, so they lower the cash to close, never below the down payment.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Home price $400,000.00, Down payment $80,000.00, Interest rate 6.5%, Origination charges 1%, Discount points 0, Appraisal, title, and other services $3,500.00, Recording fees $150.00, Transfer tax paid by you 0%, Days of prepaid interest 15, Home insurance (per year) $1,500.00, Property tax (per year) 1.1%, Months of escrow deposit 3, Seller and lender credits $0.00 gives Origination charges and points $3,200.00, Prepaids $2,354.79, Initial escrow deposit $1,475.00, Total closing costs $10,679.79, Cash to close $90,679.79, Share of the price 2.669949%.Source: Regulation Z, 12 CFR 1026.37(f) and (g): the Loan Estimate’s closing cost sections
  2. Home price $250,000.00, Down payment $8,750.00, Interest rate 7%, Origination charges 0.5%, Discount points 1, Appraisal, title, and other services $2,800.00, Recording fees $200.00, Transfer tax paid by you 1%, Days of prepaid interest 10, Home insurance (per year) $1,200.00, Property tax (per year) 1.5%, Months of escrow deposit 2, Seller and lender credits $5,000.00 gives Origination charges and points $3,618.75, Taxes and government fees $2,700.00, Prepaids $1,662.67, Initial escrow deposit $825.00, Total closing costs $11,606.42, Cash to close $15,356.42.
  3. Home price $300,000.00, Down payment $300,000.00, Interest rate 6%, Origination charges 1%, Discount points 0, Appraisal, title, and other services $2,000.00, Recording fees $100.00, Transfer tax paid by you 0%, Days of prepaid interest 20, Home insurance (per year) $1,200.00, Property tax (per year) 1%, Months of escrow deposit 0, Seller and lender credits $0.00 gives Loan amount $0.00, Origination charges and points $0.00, Prepaids $1,200.00, Total closing costs $3,300.00, Cash to close $303,300.00.

How it works

Write V for the home price, D for the down payment, and L = V − D for the loan (a down payment above the price has no answer). Every other amount is one you enter.

  1. Origination charges and points (Loan Estimate section A) = L × (origination percent + points) ÷ 100. One point is 1% of the loan.
  2. Services (sections B and C) = the amount you enter for the appraisal, credit report, title insurance, settlement, survey, and inspection.
  3. Taxes and government fees (section E) = recording fees + V × transfer tax percent ÷ 100.
  4. Prepaids (section F) = the yearly home insurance premium + prepaid interest, where prepaid interest = L × yearly rate ÷ 100 ÷ 365 × days.
  5. Initial escrow deposit (section G) = (V × property tax percent ÷ 100 ÷ 12 + yearly insurance ÷ 12) × months of escrow.
  6. Total closing costs = the sum of steps 1 to 5. The share of the price is total ÷ V × 100.
  7. Cash to close = D + total − credits. Credits cannot be more than the total closing costs; if they are, there is no answer.

Assumptions

  • Fees differ by lender, state, and county; the defaults are examples, not quotes. Use the numbers on your Loan Estimate.
  • Prepaid interest uses a 365-day year. The first year of home insurance is paid at closing.
  • The escrow deposit is whole months of property tax and insurance; some places also collect prepaid property tax, and some homes have HOA transfer fees, which are not included.
  • Mortgage insurance premiums paid at closing (such as the FHA upfront premium or a VA funding fee) are not included; see the FHA and VA loan calculators.

Worked examples by hand

A $400,000 home, $80,000 down, 6.5%, 1% origination, no points, $3,500 of services, $150 recording, no transfer tax, 15 days of interest, $1,500 a year of insurance, 1.1% property tax, 3 months of escrow. L = $320,000. Origination: 320,000 × 1% = $3,200. Services: $3,500. Government fees: $150. Prepaid interest: 320,000 × 0.065 ÷ 365 = $56.99 a day × 15 = $854.79, so prepaids are 1,500 + 854.79 = $2,354.79. Escrow: (400,000 × 0.011 ÷ 12 + 1,500 ÷ 12) × 3 = (366.67 + 125) × 3 = $1,475. The total is $10,679.79, 2.67% of the price, and the cash to close is 80,000 + 10,679.79 = $90,679.79.

A $250,000 home, $8,750 down, 7%, 0.5% origination and 1 point, $2,800 of services, $200 recording, 1% transfer tax, 10 days, $1,200 insurance, 1.5% tax, 2 months of escrow, $5,000 of seller credits. L = 241,250. Origination and points: 241,250 × 1.5% = $3,618.75. Government: 200 + 2,500 = $2,700. Prepaid interest: 241,250 × 0.07 ÷ 365 × 10 = $462.67, so prepaids are $1,662.67. Escrow: (312.50 + 100) × 2 = $825. The total is 3,618.75 + 2,800 + 2,700 + 1,662.67 + 825 = $11,606.42, and the cash to close is 8,750 + 11,606.42 − 5,000 = $15,356.42.

A $300,000 cash purchase (down payment = price): the loan is $0, so there are no lender charges ($0) and no prepaid interest. With $2,000 of services, $100 recording, and $1,200 of insurance (no escrow), the total is $3,300 and the cash to close is $303,300.

Other questions people ask

How much are closing costs?

Freddie Mac says closing costs are generally 2% to 5% of the purchase price. On a $400,000 home with the example fees here, they come to $10,679.79, or 2.67% of the price. Your Loan Estimate lists your lender's actual fees.

What is included in closing costs?

The Loan Estimate groups them: origination charges and points from the lender; services such as the appraisal, credit report, title insurance, and settlement; taxes and government fees such as recording fees and transfer taxes; prepaids such as the first year of home insurance and interest to the end of the month; and the first deposit into your escrow account.

What is prepaid interest?

Mortgage interest is paid a month late, so at closing you pay the interest from the closing day to the end of that month. It is the loan times the yearly rate ÷ 365 for each day: $320,000 at 6.5% is about $56.99 a day, so 15 days is $854.79. Closing near the end of the month lowers it.

Why do I pay into escrow at closing?

If your lender pays your property tax and insurance for you, it holds a cushion in an escrow account. At closing it collects a few months of tax and insurance to start the account. That money is still yours; it pays your bills.

Can the seller pay my closing costs?

Often yes, as a seller credit you negotiate in the purchase contract, up to limits your loan type sets. Lender credits in exchange for a higher rate are another way. Credits lower your cash to close.

Who pays the transfer tax?

It depends on the state and local custom, and it is often negotiable. Some places charge none. Enter only the part you pay as the buyer.