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Closing Cost Calculator

Estimate mortgage closing costs and the cash you need to close on a home, with lender fees, title and government fees, prepaid interest, insurance and escrow.

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Default fees are only examples, and they vary a lot by state, lender and home. Use the numbers on your Loan Estimate for the best result. Who pays which costs can depend on your contract and state law, as the CFPB explains.

Quick Answer

Closing costs are the fees and prepaid items you pay to finish a home purchase. With a $400,000 home, $80,000 down and the example fees here, closing costs come to about $12,654.79, or 4.0% of the loan, and the cash needed to close is about $92,654.79.

Last updated: 2 November 2026 ·How we calculate this: adding lender, third-party, government and prepaid costs

Table of Contents

How This Closing Cost Calculator Works

Enter the home price, down payment and rate, then the fees from your Loan Estimate, or keep the examples. The calculator groups costs into lender fees, title and government fees, and prepaid items such as insurance, escrow and daily interest. It adds them up, subtracts any credits and shows the total cash you need at closing.

Quick explanation: cash to close = down payment + closing costs − credits.

  • Lender fees: origination, points and appraisal.
  • Third-party fees: title, settlement and recording.
  • Prepaids: insurance, property tax escrow and interest until the first payment.

How to Use the Closing Cost Calculator

  1. Enter the home price, down payment and interest rate.
  2. Enter each fee from your Loan Estimate, or keep the example values.
  3. Enter insurance, property tax, escrow months and prepaid interest days.
  4. Enter any seller or lender credits.
  5. Press Calculate and read your closing costs and cash to close.

Core Formulas

  • Loan: price − down payment
  • Lender fees: loan × (origination % + points %) + appraisal
  • Government fees: recording + price × transfer tax %
  • Prepaid interest: loan × rate ÷ 365 × days
  • Escrow deposit: yearly tax ÷ 12 × months

Key Terms

  • Loan Estimate: a form lenders give within 3 business days of an application, listing expected costs.
  • Closing Disclosure: a form with the final loan terms and costs, given before closing.
  • Discount points: upfront fees paid to lower the interest rate. One point is 1% of the loan.
  • Escrow: an account that holds money for property taxes and insurance.
  • Prepaid interest: interest from the closing date to the end of that month.

Worked Example

Using the default numbers above: $400,000 home, $80,000 down, 6.5% rate.

  • Lender fees = $320,000 × 1% + $650 = $3,850.00
  • Title, settlement and government fees = $4,950.00
  • Prepaids and escrow = $3,854.79, so the total is $12,654.79

Real-Life Examples

  • Budgeting: with the example inputs, plan for about $92,654.79 in cash at closing.
  • Seller credit: a $5,000 credit lowers cash to close to about $87,654.79.
  • Buying points: 1 point on a $320,000 loan adds $3,200 upfront in exchange for a lower rate.
  • Closing early in the month: more days of prepaid interest raise the cash needed.

Closing Costs vs Cash to Close

  • Closing costs: fees and prepaid items for the loan and purchase.
  • Cash to close: closing costs plus down payment, minus credits and deposits already paid.
  • On your forms: both appear on the Loan Estimate and the Closing Disclosure.

Ways to Lower Closing Costs

  • Compare Loan Estimates: lenders’ fees differ, so get more than one.
  • Shop for services: you can often choose your own title and settlement providers.
  • Negotiate seller credits: but they may come with a higher price.
  • Lender credits: lower upfront costs in exchange for a higher rate.

Common Mistakes to Avoid

  • Forgetting prepaids. Insurance and escrow deposits are often a big part of the total.
  • Assuming credits are free. They often come with a higher price or rate.
  • Not comparing lenders. Fees can differ by thousands of dollars.
  • Ignoring transfer taxes. Some states and cities charge large transfer taxes.
  • Waiting to check the Closing Disclosure. Review it before closing day.

Frequently Asked Questions

Fees and prepaid items paid to complete a home purchase or refinance, such as appraisal, title insurance, taxes and interest.

It varies by loan size, state and lender. Use your Loan Estimate and enter the numbers here.

Usually the buyer, but the seller may pay some depending on the contract or state law, according to the CFPB.

Sometimes, or a lender credit can cover them in exchange for a higher rate. You still pay for them over time.

Origination fees pay the lender for making the loan. Points are optional fees to lower the rate.

Interest is paid in arrears, so at closing you pay interest from the closing date to the end of the month.

Money put into your escrow account at closing so there is enough to pay future taxes and insurance.

Often yes. Your Loan Estimate shows which services you can shop for.

Yes, many of the same fees apply.

Taxes some states, counties or cities charge when a property changes hands.

At least 3 business days before closing.

Money you pay when your offer is accepted to show you are serious. It is usually credited toward your cash to close, so subtract it from the cash to close shown here.

Most are not deductible for a home you live in, but mortgage points and some property taxes may be. Ask a tax professional about your situation.

Compare lenders, shop for services, negotiate seller credits, or ask about lender credits.

References & Sources

SourceUsed ForLink
Consumer Financial Protection Bureau, What fees are paid when closing on a mortgage? Common closing fees and who pays them. https://www.consumerfinance.gov/ask-cfpb/what-fees-or-charges-are-paid-when-closing-on-a-mortgage-and-who-pays-them-en-1845/
Consumer Financial Protection Bureau, Loan Estimate explainer How to read the costs on your Loan Estimate. https://www.consumerfinance.gov/owning-a-home/loan-estimate/