Finance
Closing Cost Calculator
Closing costs run about 2%–5% of the purchase price. Add up origination, title, appraisal, recording and prepaids for the total, then add your down payment for the cash to close — $90,400 on the $400,000 example below.
The purchase
The purchase price of the home
$
$80,000 down · $320,000 loan
%
Closing-cost lines
Lender origination plus discount points, as a percent of the loan
%
Processing and underwriting, flat dollars
$
The lender's appraisal fee
$
Title work, as a percent of the price
%
Government recording and transfer taxes, percent of price
%
Prepaid property tax, insurance and escrow reserves
$
Survey, pest, HOA transfer, courier
$
Optional — money the seller or lender puts toward closing
$
Total closing costs
$10,400
2.6% of price · inside the typical 2–5% range
Origination $1,600Lender $1,200Appraisal $500Title $2,000Recording $1,600Prepaids $3,000Other $500
Cash to close
$90,400
Down payment
$80,000
Loan amount
$320,000
Costs % of loan
3.3%
Typical low (2%)
$8,000
Typical high (5%)
$20,000
Cash to close
You bring $90,400 to the table — the $80,000 down payment plus $10,400 of closing costs.
Estimate only. Your actual fees depend on the lender, the state, and the property. Your Loan Estimate and Closing Disclosure are the real numbers.
Try a scenario
No sign-up · Free
The basics
What are closing costs?
Closing costs are the fees paid to set up the loan and transfer the home into your name. They are separate from the down payment, and you need both on closing day.
2% – 5% of the price
A bundle of one-time fees
Origination, appraisal, title work, recording, transfer taxes, and prepaid tax and insurance all fall due at once. Some are flat fees; some scale with the price or the loan.
On $400,000, the sample lines total $10,400 (2.6%)
down payment + costs
Cash to close is the real number
The figure that leaves your account is the down payment plus the closing costs, less any credit the seller or lender gives you. Budget for that total, not just the down payment.
$80,000 down + $10,400 costs = $90,400
Method
How to calculate closing costs by hand
Four steps take you from a fee sheet to the cash you bring to the table.
- 1
Split the fees into flat and percent lines
Some closing costs are flat dollar amounts — appraisal, lender fees, recording. Others are a percent: origination is a percent of the loan, title and transfer taxes a percent of the price.
origination 0.5% of $320,000 = $1,600 - 2
Total every line
Add the flat fees to the percent-based fees. This sum is your total closing costs — the money that goes to the lender, the title company, and the government to set up the loan and transfer the deed.
sum of all lines = $10,400 - 3
Check it against the 2%–5% rule
Divide the total by the price. Typical closing costs sit between 2% and 5% of the purchase price; a figure well outside that band is worth a second look at the line items.
$10,400 ÷ $400,000 = 2.6% - 4
Add the down payment for cash to close
Cash to close is the down payment plus total closing costs, less any seller or lender credit. This is the amount you actually wire or bring to the closing table.
$80,000 + $10,400 = $90,400
Worked examples
Closing costs across price points
The same fee mix — 0.5% origination, $1,200 lender fees, $500 appraisal, 0.5% title, 0.4% recording, $3,000 prepaids, $500 other — at four purchase prices, each with 20% down.
| Price | Closing costs | % of price | Cash to close |
|---|---|---|---|
| $250,000 | $8,450 | 3.4% | $58,450 |
| $400,000 | $10,400 | 2.6% | $90,400 |
| $550,000 | $12,350 | 2.2% | $122,350 |
| $750,000 | $14,950 | 2.0% | $164,950 |
Percent-based lines (origination, title, recording) grow with the price, so the total rises but stays a roughly steady share of the purchase.
Where it shows up
Why the number matters
Three moments where closing costs decide what you can actually do.
cash on hand
Budgeting to buy
Many first-time buyers save for the down payment and forget the closing costs. Knowing both tells you the real amount you need before you can close.
Save the down payment and the closing costs
seller credits
Negotiating the offer
A seller credit toward closing costs lowers your cash to close without changing the price. In a buyer’s market it is one of the most useful things to ask for.
Ask for a credit to cut cash to close
no-closing-cost loans
Comparing loan offers
A no-closing-cost loan does not erase the fees — the lender pays them for a higher rate. Only the math over how long you keep the loan tells you if that is a good trade.
A lender credit trades fees for a higher rate
Reference
The common closing-cost lines
General guidance, not a quote. Who pays varies by state and by what you negotiate; the ranges are typical, not fixed.
| Line item | Usually paid by | Typical range |
|---|---|---|
| Origination & points | Lender | 0.5–1% of loan |
| Underwriting & processing | Lender | $500–$1,500 |
| Appraisal | Appraiser | $400–$700 |
| Title insurance & search | Title company | 0.5–1% of price |
| Recording & transfer taxes | Government | 0.1–2% of price, by state |
| Prepaids & escrow reserves | Escrow account | $2,000–$5,000 |
| Other (survey, pest, HOA) | Third parties | $100–$800 |
Worth knowing
Things that move the number
None of these are in the sticker price, and each can be worth real money.
compare the Loan Estimate
The three-day forms
You get a Loan Estimate within three business days of applying and a Closing Disclosure at least three days before closing. Compare them — the fees should barely move.
fees are negotiable
Shop and ask
Origination and lender fees vary widely between lenders, and in many states you can pick your own title company. Comparing estimates is the cheapest way to save thousands.
credits raise the rate
Lender credits are not free
A lender credit pays some costs now in exchange for a higher rate later. It helps if you are short on cash or plan to move soon, and costs you if you keep the loan for years.
prepaids are not fees
Prepaids are your own money
Prepaid tax and insurance and escrow reserves are part of closing costs, but that money is yours — it funds the escrow account that pays your own bills, not a fee to anyone.
points buy a lower rate
Discount points
A point is 1% of the loan paid up front to cut the rate. Worth it only if you keep the loan long enough for the monthly saving to pay the point back.
transfer taxes vary by state
Location changes the total
Transfer and recording taxes range from almost nothing to a couple of percent depending on the state and county, which is why the same fee sheet totals differently across the country.
Quick chart
Closing costs by home price
Pick a price and read the estimated total closing costs at each percent of the price, from $200,000 to $800,000. Most buyers land in the 2%–5% band.
Home price
Estimated total closing costs on $400,000, at each percent of the price. Most buyers land in the 2%–5% band.
| % of price | Estimated closing costs | Cash to close at 20% down |
|---|---|---|
| 2.0% | $8,000 | $88,000 |
| 2.5% | $10,000 | $90,000 |
| 3.0% | $12,000 | $92,000 |
| 4.0% | $16,000 | $96,000 |
| 5.0% | $20,000 | $100,000 |
Cash to close assumes a 20% down payment and no seller credit. Use the calculator above for an itemized estimate.
How we calculate this
The formula and our assumptions
Total closing costs are just the sum of the itemized lines; cash to close adds the down payment. We show the working so you can check it.
total = Σ of the lines
Total closing costs
Percent lines are converted to dollars first — origination on the loan, title and transfer taxes on the price — then every line is added together.
cash to close = down + costs − credit
Cash to close
The cash you bring is the down payment plus total closing costs, minus any seller or lender credit. That is the figure the title company confirms before closing.
- Every figure is an estimate; your Loan Estimate and Closing Disclosure are the real numbers.
- Prepaids depend on your closing date and local tax and insurance cycles.
- Who pays transfer taxes and title fees varies by state and by negotiation.
- The 2%–5% band is a rule of thumb, not a guarantee.
Where to get a mortgage
Where to shop for the loan
Rows are ordered by borrower fit, not by any payout. Comparing Loan Estimates is the single best way to cut closing costs, because origination and lender fees are where lenders differ most.
| Where | Examples | Best for | Note |
|---|---|---|---|
| Online marketplace | LendingTree, Credible | Comparing fees across several lenders at once | One form returns several Loan Estimates — the fastest way to see who charges the least. |
| Direct lender / bank | Rocket, Chase, local banks | An existing banking relationship | Relationship discounts, but you only see one lender's fee sheet. |
| Credit union | Member-owned lenders | Lower origination and lender fees | Often the cheapest fees, but you must be eligible to join. |
| Mortgage broker | Independent brokers | Shopping wholesale pricing for you | Can find lower fees across many lenders — useful for a complex file. |
CalculateThis.io is not a lender and does not make credit decisions. When we add lender links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the fees or rate you are offered.
Sources
Where the method comes from
- Consumer Financial Protection Bureau — the Loan Estimate and Closing Disclosure forms and what each fee means.
- TRID (TILA-RESPA Integrated Disclosure) rule — the three-day timing of both forms.
- Industry rule of thumb: total closing costs of 2%–5% of the purchase price.
FAQ
Common questions
Closing costs usually land between 2% and 5% of the purchase price. On a $400,000 home that is about $8,000 to $20,000. The itemized example on this page — origination, lender fees, appraisal, title, recording, and prepaids — totals $10,400, or 2.6% of the price. The exact figure depends on your lender, your state, and how much of the tax and insurance you prepay at closing.
They are two separate piles of cash. The down payment is the part of the price you pay yourself instead of borrowing — $80,000 on a 20% down $400,000 purchase. Closing costs are the fees to set up the loan and transfer the property — $10,400 here. You need both at the table, so the real cash to close is the two added together: $90,400.
Cash to close is the down payment plus total closing costs, minus any seller or lender credit. On the $400,000 example that is $80,000 down plus $10,400 in costs, for $90,400. If the seller agreed to a $6,000 credit, the cash to close would drop to about $84,400. This is the number the title company gives you before closing day.
The buyer pays most closing costs — origination, appraisal, lender fees, and prepaids. The seller usually pays the real-estate commissions and, in many states, part of the transfer tax. Anything is negotiable: in a slow market a buyer can ask the seller to cover some buyer costs through a seller credit, which lowers the buyer's cash to close.
Sometimes. On a refinance you can often add the costs to the loan balance. On a purchase you usually cannot finance them directly, but you can take a lender credit — the lender pays some costs in exchange for a slightly higher rate — or negotiate a seller credit. Either way the money is not free: a higher rate costs you more over the life of the loan.
They are the two federal forms that show your real numbers. The Loan Estimate arrives within three business days of applying and lists the fees the lender expects. The Closing Disclosure arrives at least three business days before closing and shows the final figures. Compare the two side by side — the fees should match closely, and big jumps are worth questioning.
Most are not. Discount points and prepaid mortgage interest can be deductible in the year you buy, and property taxes you prepay may be too, but title fees, appraisal, and recording are not. Rules change and depend on your situation, so treat this as general information and check with a tax professional.
Shop lenders and compare the Loan Estimates line by line — origination and lender fees vary a lot. Ask the seller for a credit. In many states you can shop for your own title company. And skip discount points if you do not plan to keep the loan long enough for the lower rate to pay them back.
Keep going
Related calculators
Keep reading
Further reading
Calculator
Gross vs Net: The Difference, With Dollar Examples
Gross is the total before deductions; net is what is left after deductions are subtracted. This guide explains gross vs net for pay, income, and profit with worked dollar examples and a quick comparison table.
Ugo Charles
Calculator
How to Write a Check: A Step-by-Step Guide
Writing a check takes six fields: the date, the payee, the amount in numbers, the amount in words, an optional memo, and your signature. This guide walks every field with one worked example and shows exactly how to write the cents.
Ugo Charles
Finance
The Compound Interest Formula: A = P(1 + r/n)^(nt), Explained
The compound interest formula is A = P(1 + r/n)ⁿᵗ, where P is the starting principal, r is the annual rate as a decimal, n is the number of times interest compounds per year, t is the number of years, and A is the final amount. This guide defines each variable, works a full example, and shows how compounding frequency changes the result.
Ugo Charles
Written by
UC
Author
Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
Did this solve your problem?