Closing cost calculator for home buyers
Buyer closing costs usually run about 2% to 5% of the purchase price. On a $400,000 home with $80,000 down and a 6.5% rate, this calculator estimates $7,676 to $12,231, including prepaid property tax, insurance and interest, so you need roughly $87,700 to $92,200 in cash at closing.
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Estimate only, not financial advice. Closing costs vary by state, lender and title company; your Loan Estimate and Closing Disclosure show the real numbers.
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📌 Key facts
- Buyer closing costs typically run about 2% to 5% of the purchase price.
- Lender fees are estimated at 0.5% to 1.0% of the loan amount.
- Prepaid interest is loan amount × rate ÷ 365 × days until the end of the month.
- On a $400,000 home with $80,000 down and a 6.5% rate, estimated closing costs are about $7,676 to $12,231.
- Your Loan Estimate is the official document: confirm every figure there.
What closing costs include
Closing costs are the fees and prepaid expenses you pay when the sale is finalized, on top of your down payment. They fall into three groups:
- Lender fees: origination or underwriting, appraisal, credit report.
- Third-party and government fees: title search and insurance, settlement or escrow, recording, survey, inspection and transfer taxes where the buyer pays them.
- Prepaids and escrow: the first year of homeowners insurance, property tax set aside for your escrow account, and interest from closing day to the end of the month.
cash to close = down payment + closing costs
How we estimate each item
| Item | Method |
|---|---|
| Lender fees | 0.5% to 1.0% of the loan |
| Appraisal | $400 to $700 |
| Inspection | $300 to $500 |
| Title, insurance and settlement | $1,500 to $3,500 |
| Prepaid interest | loan × rate ÷ 365 × days |
| Prepaid property tax | yearly tax ÷ 12 × months |
These ranges are typical, not quotes. Some items, such as title insurance and transfer tax, depend heavily on your state.
Ways to lower your closing costs
- Compare Loan Estimates from at least three lenders; fees differ more than rates.
- Shop for title insurance if your state lets you choose.
- Close near the end of the month to cut prepaid interest.
- Ask the seller for a credit toward closing costs, which many loan types allow within limits.
Closing cost calculator: a line-by-line example
Let us walk through a $400,000 purchase with $80,000 down. The loan is $320,000. First, lender fees at 0.5% to 1.0% of the loan are $1,600 to $3,200. Then add an appraisal of $400 to $700, an inspection of $300 to $500 and title and settlement of $1,500 to $3,500. Next, add recording and survey fees. Finally, add prepaid interest, tax and insurance.
So the range from the closing cost calculator comes from low and high estimates for each item. That is why you should always compare it with your Loan Estimate.
Closing cost calculator: who pays what
Not every cost falls on the buyer. In many states, sellers pay the real estate agents' commissions and some transfer taxes. Buyers pay lender fees, title insurance and prepaids. However, local custom varies, so ask your agent.
| Cost | Usually paid by |
|---|---|
| Lender origination fee | Buyer |
| Appraisal and inspection | Buyer |
| Title insurance (owner's) | Varies by state |
| Agent commissions | Seller, in most cases |
| Transfer tax | Varies by state |
Also, you can negotiate a seller credit to cut your cash due.
Closing cost calculator: plan the rest of your purchase
Closing costs are one part of your budget. First, check your monthly payment in the mortgage calculator. Then confirm how much you can borrow with the home affordability calculator. Next, compare buying with the rent vs buy calculator.
If you already own a home, the refinance calculator shows how fees affect your break-even point. So you see the full cost before you sign.
Closing cost calculator: a checklist before closing day
A few steps help on closing day. First, compare your Loan Estimate with the Closing Disclosure, which arrives at least three days before closing. Then check each fee against the estimate. Next, ask about any change. Finally, bring a cashier's check or arrange a wire for the exact amount. In practice, a small mistake caught early is easy to fix.
3 real-life examples
$400,000 home, $80,000 down, 6.5% rate
Loan $320,000. Prepaids: $667 property tax (2 months), $1,800 insurance, $855 interest (15 days). Total closing costs $7,676 to $12,231 (1.9% to 3.1%). Cash to close: $87,676 to $92,231.
$300,000 home, 20% down, 0.5% transfer tax
Loan $240,000 at 7%. Transfer tax adds $1,500; prepaids total $2,690. Closing costs $8,145 to $12,300 (2.7% to 4.1%). Cash to close: $68,145 to $72,300.
$250,000 home, 5% down
Loan $237,500 at 6.75%, with 3 months of tax collected. Closing costs $6,876 to $11,019. Cash to close, including $12,500 down: $19,376 to $23,519.