Closing Costs Calculator

Q: How much are closing costs on average?

For home buyers, closing costs typically range between 2% and 5% of the total purchase price. For home sellers, closing costs average 6% to 10%, primarily due to real estate agent commissions, transfer taxes, and owner title insurance policies.

Q: What is the difference between down payment and closing costs?

Your down payment goes directly toward property equity, reducing the amount you borrow. Closing costs are non-equity administrative, lender, title, legal, and prepaid government escrow expenses required to execute the transaction.

Q: Can closing costs be rolled into the mortgage?

On standard home purchase loans, lenders generally do not allow you to finance buyer closing costs into the loan balance unless negotiated as seller concessions or structured via a lender credit with a higher ongoing interest rate. For mortgage refinances, closing costs can usually be rolled into the new loan balance.

Q: What are prepaid closing costs?

Prepaids are upfront deposits collected at closing into an escrow reserve account to pay future ongoing property expenses. They commonly include 12 months of homeowners hazard insurance premiums and 2 to 6 months of prorated municipal property taxes.

Estimate your total transaction fees, lender origination charges, title insurance, and prepaid escrow reserves for home purchases and sales with zero data tracking.

Select Currency:

Home Purchase Price

The agreed contract purchase or sale price.

Down Payment Percentage

Down payment determines your total financed loan amount.

Closing Cost Rate Preset

Estimated Buyer Closing Costs

$8,750

2.5% of $350,000 purchase price

Total Cash to Close

$78,750

Down Payment + Closing Costs

Lender & Appraisal

$3,240

Origination, appraisal & admin

Title, Escrow & Tax

$5,510

Title insurance & prepaids

Estimated Itemized Fee Schedule

How to Use This Calculator

Select your transaction role: Toggle between Home Buyer Mode (calculates loan origination, escrow reserves, and cash to close) and Home Seller Mode (calculates broker commissions, transfer taxes, and net proceeds).
Enter your home price: Input the expected purchase or sale contract price.
Customize your rate preset: Choose a typical closing cost benchmark (2.0% for low-fee jurisdictions, 2.5% for national averages, or 3.5% for high-transfer-tax states).
Inspect your itemized schedule: Review the detailed breakdown of lender underwriting, title insurance, recording fees, and initial escrow prepaids.

All calculations run 100% locally in your browser with zero data tracking. Experiment freely to plan your exact cash needed on settlement day.

The Formula

Closing costs are calculated as a composite percentage of the property price and the financed loan amount.

Total Closing Costs = Home Price × Closing Cost Percentage Buyer Cash to Close = Down Payment Cash + Total Closing Costs Seller Net Proceeds = Home Sale Price - Total Closing Costs - Outstanding Mortgage Payoff

Where:

Lender Fees: Origination (0.5%–1.0% of loan amount), appraisal ($500–$900), credit report ($30–$80), and flood certification.
Title & Escrow: Settlement fees, lender title insurance, title examination, and courier costs.
Prepaid Escrow: 1 full year of homeowners hazard insurance plus 2 to 6 months of prorated municipal property taxes.
Government Fees: County deed recording fees and city/county transfer taxes.

Example: Buying a $350,000 Home

Suppose you are purchasing a home for $350,000 with a 20% down payment ($70,000) and financing the remaining $280,000 with a conventional mortgage.

Lender Origination & Underwriting (0.8% of loan): $2,240
Home Appraisal & Inspection: $800
Title Search & Lender Title Insurance: $1,250
Government Recording & Transfer Fees: $1,100
Prepaid Homeowners Insurance (1 Year): $1,400
Prepaid Property Taxes (3 Months Escrow): $1,050
Credit Report & Flood Determination: $120
Total Estimated Closing Costs: $7,960 (2.27% of price)
Total Cash Needed at Closing: $70,000 (Down Payment) + $7,960 (Closing Costs) = $77,960

Frequently Asked Questions

How much are closing costs on average?

For home buyers, closing costs typically average between 2% and 5% of the total purchase price. For home sellers, closing costs range from 6% to 10% when factoring in real estate broker commissions, transfer taxes, and owner title insurance.

What is the difference between down payment and closing costs?

Your down payment represents direct equity in the real estate, reducing the amount you borrow. Closing costs are transactional, legal, lender, and administrative expenses required to close the deal that do not build equity.

Can closing costs be rolled into the mortgage?

On purchase loans, closing costs generally cannot be added to the loan balance unless negotiated as seller concessions or offset with a lender credit in exchange for a higher ongoing mortgage rate. In refinance loans, closing costs are commonly rolled into the new loan balance.

What are prepaid closing costs?

Prepaids are advance escrow payments for recurring property costs collected on closing day. They typically include one year of prepaid homeowners insurance and several months of prorated municipal property taxes.

Can a seller pay the buyer's closing costs?

Yes. This is called a seller concession or seller credit. Conventional mortgage rules permit sellers to contribute 3% to 6% of the purchase price toward buyer closing costs, while FHA allows up to 6% and VA allows up to 4%.