How this calculator works
Each cost is estimated separately: lender fees as a share of the loan, title and transfer taxes as a share of the price, fixed fees for appraisal and inspection, months of property tax collected for escrow, and the first year of insurance. Adding the down payment gives the total cash you'll bring to closing.
Worked example
With the example values below: Estimated closing costs, $12,800 (3.2% of the price). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Home price | $400,000 |
| Down payment | 20% |
| Lender fees (% of loan) | 1% |
| Title, escrow & legal (% of price) | 0.6% |
| Appraisal, inspection, survey | $1,200 |
| Transfer & recording taxes | 0.5% |
| Prepaid items | |
| Property tax rate | 1.1% |
| Months of tax escrowed | 6 |
| First-year insurance premium | $1,800 |
What closing costs include
Closing costs are the fees and prepaid items due when you finalize a mortgage. They usually fall into four groups:
- Lender fees: origination or underwriting fees, application fees and any discount points.
- Third-party services: appraisal, credit report, home inspection, survey, flood certification and attorney fees.
- Title and government: title search and insurance, escrow or settlement fees, recording fees and transfer taxes.
- Prepaids and escrow: prepaid interest to the end of the month, the first year of homeowners insurance and a cushion of property tax and insurance in escrow.
How much closing costs usually are
For buyers, closing costs typically run 2% to 5% of the purchase price, so about $8,000 to $20,000 on a $400,000 home. Transfer taxes vary the most from place to place: some states charge none, others charge 1% or more of the price.
Your lender must send a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing. Compare the two line by line; some fees can't increase at all, and others can only rise by limited amounts.
How to lower closing costs
A no-closing-cost mortgage rolls the fees into a higher rate or the loan balance instead; it lowers cash at closing but usually costs more over time.
- Compare Loan Estimates from at least three lenders; origination fees vary widely.
- Shop for title insurance and settlement services where the Loan Estimate says you can.
- Ask the seller for a credit toward closing costs, especially in a slower market.
- Close near the end of the month to reduce prepaid interest.
- Look into state and local first-time buyer programs that cover closing costs.
Cash to close
Cash to close is the down payment plus closing costs, minus any earnest money deposit and seller or lender credits. It's the amount you'll wire before signing. The calculator adds your down payment so you can see the total, and the down payment calculator helps plan the savings. When refinancing, the refinance calculator shows how long it takes to recover closing costs.
Frequently asked questions
How much are closing costs?
Usually 2% to 5% of the purchase price for buyers. On a $350,000 home, plan for roughly $7,000 to $17,500, depending on your lender's fees, your state's transfer taxes and how much is collected for escrow.
Who pays closing costs, the buyer or the seller?
Both pay some. Buyers pay most loan-related costs and prepaids; sellers usually pay real estate commissions and, in many areas, part of the transfer tax. Buyers can negotiate seller credits to cover some of their costs.
Can closing costs be rolled into the mortgage?
On a purchase, usually not directly, but a lender credit in exchange for a higher rate can cover them. On a refinance, closing costs can often be added to the new loan balance.
What is cash to close?
The total you bring to closing: down payment plus closing costs, minus your earnest money deposit and any seller or lender credits. It's shown on your Closing Disclosure.
Are closing costs tax-deductible?
Most aren't. Mortgage points on a purchase and prepaid mortgage interest can be deductible if you itemize, and property taxes paid at closing count toward the state and local tax deduction. Title, appraisal and other fees are added to your home's cost basis instead.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.