Closing Costs Calculator
Work out what you actually need to bring to the closing table, grouped into the same sections your Loan Estimate uses — so you can hold the two side by side and see what changed.
On this page
Why the sections are the sections
The groupings on this page are not ours. They are the ones the Consumer Financial Protection Bureau put on the Loan Estimate and the Closing Disclosure: loan costs, other costs, prepaids, initial escrow, credits.
Using the same structure is the whole point. You can put the form the lender sent you next to this page and compare section for section, which is far more useful than a single total that cannot be reconciled with anything.
What belongs in each section
Loan costs are what the lender charges to make the loan: origination, discount points, the appraisal, the credit report, and title services. These are the ones worth shopping, and the ones where lenders differ most.
Other costs are set by government and third parties: recording fees, transfer taxes, survey, inspections. Transfer taxes in particular vary by state and county by more than most buyers expect — they can be a rounding error or several thousand dollars for the same price.
Prepaids are costs you would have anyway, paid early: interest from closing to the end of that month, and usually the first year of homeowners insurance.
Initial escrow is not a cost at all. It is your own money, held by the servicer to pay your own property tax and insurance when they fall due. It still has to be found on the day.
Credits reduce what you bring: a seller contribution negotiated into the contract, or a lender credit given in exchange for a higher rate.
No percentage rule is applied here
You will see "closing costs are 2% to 5% of the price" everywhere. It is a useful thing to have heard and a terrible thing to budget from, because the components that drive it are local. A state with a high transfer tax and mandatory attorney involvement produces a very different figure from one with neither, at the same price and the same rate.
So nothing on this page is auto-filled from a percentage. Every figure is one you enter, from your Loan Estimate or from a quote. The percentages the calculator reports are outputs — what your costs happen to be as a share of the price and the loan — not inputs it assumed.
A worked example
A $410,000 purchase with $82,000 down, so a $328,000 loan. Origination $2,400, half a point costing $1,640, appraisal $650, credit report $85, title services $1,950 — loan costs of $6,725. Recording $175, transfer taxes $1,640, other $450 — other costs of $2,265. Prepaid interest $620 and an insurance premium of $1,580 make prepaids of $2,200, with $1,350 of initial escrow. A $2,500 seller credit comes off.
Closing costs total $10,040, which is 2.45% of the price and 3.06% of the loan. Cash to close is $92,040 once the down payment is added.
Change one thing — a state with a 1.5% transfer tax instead of 0.4% — and closing costs rise by about $4,500 with nothing else altered. That is the entire argument against the percentage rule of thumb.
Reading the Loan Estimate you were sent
Lenders must issue a Loan Estimate within three business days of an application, on a standard form, which is what makes offers comparable at all. Section D is total loan costs; section J is total closing costs; the last page carries the cash to close.
Some figures on that form are guaranteed and some are not. Origination charges generally cannot increase. Services you were allowed to shop for can, within limits. Prepaids and escrow move with the closing date. The Closing Disclosure arrives at least three business days before closing, and comparing the two is how you catch a change worth asking about.
What this does not cover
- Seller-side costs. Agent commission and the seller's share of taxes are a different calculation.
- Prorated property tax. Depends on the closing date and on whether your area bills in advance or arrears.
- Down payment assistance. Grants and second liens change the cash needed and are not modelled.
- FHA and VA fees. Upfront mortgage insurance and the VA funding fee are specific to those programmes; enter them under other costs if they apply.
- Whether any fee is negotiable. Some are, some are not, and the Loan Estimate marks which you may shop for.
Once the cash figure is settled, check the payment it leads to with the mortgage calculator. See our methodology for how these tools are built and tested.
Frequently asked questions
How much are closing costs on a $400,000 house?
It depends far more on where the house is than on what it costs. Transfer taxes, title practice, and attorney requirements differ by state and county, and they are the components that move most.
The honest answer is to enter the figures from your own Loan Estimate. This calculator will tell you the percentage afterwards, which is the right order to do it in.
Is the escrow deposit part of my closing costs?
It appears in the cash you bring, but it is not a cost. It is your own money, held to pay your own property tax and insurance bills when they arrive.
It is grouped separately here for that reason, so the true cost figure is not inflated by money you have not actually spent.
Can I roll closing costs into the loan?
On a purchase, generally not — most closing costs must be paid at closing, though a seller credit or a lender credit can cover them. On a refinance it is common to add them to the balance.
A lender credit is not free money either: it is usually bought with a higher rate, which costs more over time than the credit is worth if you keep the loan.
Why does closing late in the month reduce my prepaid interest?
Because prepaid interest covers the days between closing and the end of that month. Closing on the 28th means three days of interest; closing on the 3rd means nearly a month of it.
It shifts cash rather than saving it — your first full payment comes a month later either way — but it does reduce what you bring to the table.
What is the difference between a Loan Estimate and a Closing Disclosure?
The Loan Estimate arrives within three business days of your application and is an estimate on a standard form. The Closing Disclosure arrives at least three business days before closing and states the final figures.
Comparing them line by line is the single most useful thing a buyer can do in the last week, because certain fees are not allowed to increase and a change may be a mistake worth querying.
Are closing costs tax deductible?
Most are not. Points on a purchase may be deductible in the year paid under certain conditions, and prepaid property tax may be deductible; origination fees, title services, and recording fees generally are not.
Several also add to your cost basis, which matters when you sell. This is a question for a tax professional rather than a calculator.
Related calculators
This calculator is provided for general educational and estimation purposes only and is not lending, legal, or real estate advice. It is not a Loan Estimate and carries no lender obligation. Your lender's Loan Estimate and Closing Disclosure are the documents that bind, and only they state what you will actually pay.