Closing Costs Calculator

Estimate buyer and seller closing costs for any purchase price — itemized by lender fees, title, prepaid items, and taxes. No surprises at the closing table.

What Closing Costs Include

  • Buyer closing costs typically range from 2% to 5% of the purchase price and include loan origination fees, appraisal, title insurance, prepaid property taxes, homeowners insurance, and escrow setup.
  • Seller closing costs are usually 1%–3% and are dominated by the real estate agent commission — which can range from 2.5%–6% depending on negotiation — plus any transfer taxes and title fees.
  • Seller concessions allow the buyer to ask the seller to cover a portion of the buyer's closing costs. This is negotiated as part of the purchase contract and reduces how much cash the buyer needs at closing.

Calculation details

Methodology

The calculator estimates buyer and seller line items from the purchase price, loan amount, state assumptions, loan type, and editable fees. Buyer cash to close equals down payment plus estimated buyer costs. Seller net equals the purchase price minus estimated commissions, transfer charges, prorations, and other selected seller costs.

Assumptions and limitations

  • State percentages and flat fees are simplified planning defaults, not current quotes or legal determinations.
  • Prepaid interest uses loan amount × annual rate ÷ 365 × the entered day count rather than an actual funding date.
  • FHA and VA financing fees use simplified defaults; eligibility, exemptions, and financing treatment are not determined.
  • The estimate may omit reserves, credits, local charges, mortgage insurance, and transaction-specific prorations.
  • The lender's Loan Estimate and Closing Disclosure control the final amounts.

Worked example: estimated buyer cash to close

  • $500,000 Texas purchase
  • 20% down and $400,000 loan
  • 6.5% rate and 30 prepaid-interest days
  • Default lender, title, escrow, inspection, appraisal, survey, tax, and insurance assumptions

The default inputs estimate about $17,538 in buyer closing costs. Adding the $100,000 down payment produces about $117,538 estimated cash to close.

This is a planning total, not a quote. Actual title charges, taxes, credits, prepaid items, and lender fees can materially change the final amount.

Official sources

Frequently Asked Questions

What are typical closing costs for a home buyer?

Buyer closing costs typically run 2%–5% of the purchase price. On a $350,000 home, expect $7,000–$17,500. The biggest line items are loan origination (0.5%–1%), title insurance ($1,000–$2,500), prepaid property taxes and homeowners insurance (2–3 months upfront), and appraisal ($400–$700). Costs vary significantly by state due to transfer taxes and attorney requirements.

Can closing costs be rolled into the mortgage?

On a refinance, yes — closing costs can often be added to the new loan balance. On a purchase, you generally cannot finance closing costs directly into the loan, but you can negotiate seller concessions (where the seller credits you for closing costs) or accept a slightly higher rate in exchange for lender credits. Either approach reduces your out-of-pocket cash at closing.

What are seller concessions and how much can I ask for?

Seller concessions are credits from the seller that cover a portion of the buyer's closing costs. Conventional loans allow concessions of 3%–9% of the purchase price depending on down payment; FHA allows up to 6%; VA allows up to 4%. Asking for concessions is common in slower markets or when the home has been sitting — you're essentially trading a slightly higher offer price for cash back at closing.

Do I pay closing costs if I'm paying cash?

Cash buyers still pay some closing costs: title insurance, attorney fees (in attorney-required states), transfer taxes, recording fees, and potentially a buyer's agent commission. You avoid all lender-related fees (origination, appraisal, mortgage insurance, discount points). Cash buyers typically pay 1%–3% of the purchase price in closing costs vs. 2%–5% for financed buyers.

How to use this estimate

This calculator is an educational planning tool. Results are based on the figures and assumptions entered by the reader, use standard mortgage mathematics, and are not a loan offer, approval, or substitute for a lender's Loan Estimate. Taxes, insurance, fees, mortgage insurance, and available rates vary by borrower, property, lender, and location.

Review the assumptions, compare more than one scenario, and confirm the final numbers with a licensed mortgage professional before making a financial commitment.