Closing Cost Calculator
Estimate the closing costs when buying or refinancing a home.
Loan Details
What are closing costs?
Closing costs are the fees and prepaids you pay to finish a mortgage — the charge for originating, underwriting, funding, and recording the loan, plus the third-party services and advance payments the lender requires before it releases the money. They are separate from your down payment and separate from the purchase price. On a $500,000 purchase with 20% down you hand over $100,000 of down payment plus roughly $12,000 of closing costs, and both numbers have to be in your bank account on settlement day.
Lenders and regulators quote the total as a percentage of the loan amount. For a purchase, 3% to 5% of the loan is the working range, 2% to 6% covers nearly everything you will see, and a refinance usually lands between 3% and 6% because you pay for a new appraisal, a new title policy, and a fresh set of lender fees on a loan you already have. On a $400,000 loan, 2% is $8,000 and 6% is $24,000 — a $16,000 spread driven by your rate, your lender, your title market, and your state's transfer taxes.
The charges fall into four buckets. Lender fees cover origination, underwriting, the credit report, and the rate lock. Third-party fees cover the appraisal, title search, owner's and lender's title insurance, the survey, and recording. Prepaids are the interest you owe from your closing date to the end of the month plus the first annual homeowners insurance premium. Escrow reserves are one to six months of property tax and insurance collected up front so your servicer can pay those bills when they come due.
Two documents control the number. Your lender must deliver a Loan Estimate within three business days of receiving your application, and you must receive a Closing Disclosure at least three business days before signing. Compare both against the itemized example worked out further down this page — on a $500,000 purchase with a $400,000 loan it totals $12,089.73, or 3.02% of the loan.
How to use this calculator
- Enter the loan amount — purchase price minus down payment for a purchase, or your current balance plus any financed amount for a refinance.
- Select purchase or refinance, because the fee sets differ: a refinance adds a new appraisal and title policy but skips transfer taxes and seller concessions.
- Enter the interest rate and term. The worked examples on this page use the site benchmark of 6.5% over 360 months.
- Adjust the fee inputs — origination percentage, appraisal, title, recording, prepaid days — so they match the Loan Estimate you were quoted. The defaults are national averages.
- Click Calculate to see the itemized total, the cost as a percentage of the loan, and the full cash to close including your down payment.
A realistic input set for a $500,000 purchase with 20% down: loan amount $400,000, rate 6.5%, term 360 months, origination at 0.75% of the loan ($3,000), appraisal $600, credit report and verifications $125, title insurance $2,400, settlement fee $800, recording $175, survey $450, prepaid interest for 16 days at $71.23 a day ($1,139.73), homeowners insurance $1,800 for the first year, and a property tax escrow of four months against a $4,800 annual bill ($1,600). Those nine inputs total $12,089.73 — 3.02% of the loan and 2.42% of the $500,000 price — so your cash to close is $112,089.73. For a refinance, drop the survey and the transfer-related items, add a new appraisal at $600, and expect the percentage to land closer to 4%.
How closing costs are calculated
Your lender adds four things: a percentage-based origination fee, a set of fixed third-party charges, daily interest prepaid from the closing date, and escrow deposits. Nothing in the total is a mystery — every line is either a percentage of the loan or a fixed dollar quote you can read off the Loan Estimate.
Total closing costs = (origination % × loan amount) + fixed third-party fees + (loan amount × rate ÷ 365 × days of prepaid interest) + first-year insurance + tax escrow reserves
Here the loan amount is what you borrow, the origination percentage is what the lender charges to write the loan, the days run from your closing date to the last day of that month, and the tax reserves are the months your lender requires based on your tax bill and the time of year you close.
Worked example: $500,000 purchase, 20% down, $400,000 loan at 6.5%
Step 1: lender fees. The origination is 0.0075 × 400,000 = $3,000; add the $600 appraisal and the $125 credit report and you have $3,725.
Step 2: third-party fees. Title insurance $2,400 + settlement fee $800 + recording $175 + survey $450 = $3,825.
Step 3: prepaid interest. The daily rate is 400,000 × 0.065 ÷ 365 = $71.2329. Closing on the 15th leaves 16 days in the month, so 71.2329 × 16 = $1,139.73.
Step 4: prepaids and reserves. $1,139.73 of interest + $1,800 of homeowners insurance + $1,600 of property tax escrow = $4,539.73.
Step 5: total. $3,725 + $3,825 + $4,539.73 = $12,089.73. Divided by the $400,000 loan that is 3.02%; divided by the $500,000 price it is 2.42%.
Step 6: cash to close. Down payment $100,000 + closing costs $12,089.73 = $112,089.73 wired or certified to the settlement agent. If you instead close on the last day of the month, prepaid interest drops to $71.23 and the total falls to $11,021.03 — the same loan, $1,068.70 cheaper, purely because of the calendar.
Worked scenarios
The tables below hold everything constant except one variable, so you can see what actually moves the number: the size of the loan, the type of transaction, the loan program's seller-paid cap, and the day you close.
Purchase scenarios: price, down payment, and cash to close
| Home price | Down payment | Loan amount | Closing costs | Cash to close |
|---|---|---|---|---|
| $300,000 | 10% — $30,000 | $270,000 | $8,100 | $38,100 |
| $400,000 | 10% — $40,000 | $360,000 | $10,800 | $50,800 |
| $500,000 | 20% — $100,000 | $400,000 | $12,090 | $112,090 |
| $750,000 | 20% — $150,000 | $600,000 | $18,000 | $168,000 |
Every row except the third is a flat 3% planning estimate; the third is the itemized example above, which came to $12,089.73. Notice that doubling the home price does not double the cash to close, because closing costs scale with the loan while the down payment scales with the price. Going from a $300,000 house to a $750,000 house multiplies the price by 2.5 but the cash requirement by 4.4 — the down payment percentage is what bites.
Closing costs by transaction type
| Transaction | Loan amount | Typical range | Estimated cost |
|---|---|---|---|
| Purchase, conventional, 20% down | $400,000 | 2%–5% | $12,090 |
| Purchase, conventional, 5% down | $475,000 | 3%–5% | $16,625 |
| Purchase, FHA, 3.5% down | $405,300 | 4%–6% incl. 1.75% upfront MIP | $18,239 |
| Rate-and-term refinance | $350,000 | 3%–6% | $10,500 |
| Cash-out refinance | $400,000 | 4%–6% | $18,000 |
The FHA row is the one that surprises people: 1.75% of the loan ($7,093 on $405,300) is charged as upfront mortgage insurance premium and financed into the balance, so the same settlement statement shows roughly $11,000 of ordinary fees plus $7,093 of MIP. A VA purchase works the opposite way — the 2.15% funding fee on a $400,000 loan is $8,600, but VA lets the seller pay it inside a 4% concession cap.
Seller-paid closing costs by loan program
| Loan type | Maximum seller-paid costs | On a $500,000 sale |
|---|---|---|
| Conventional, less than 10% down | 3% | $15,000 |
| Conventional, 10%–25% down | 6% | $30,000 |
| Conventional, more than 25% down | 9% | $45,000 |
| FHA | 6% | $30,000 |
| VA | 4% | $20,000 |
These are interested-party contribution limits, not targets. A seller who agrees to $30,000 of concessions on a conventional loan with 5% down can only contribute $15,000 toward your costs — the rest has to come from you or come off the price. In a soft market, asking for the full allowed amount is the single cheapest way to reduce the cash you bring to the table.
Prepaid interest by closing date
| Closing date | Days of interest | Prepaid interest on $400,000 at 6.5% |
|---|---|---|
| 1st of the month | 30 | $2,136.99 |
| 10th of the month | 21 | $1,495.89 |
| 15th of the month | 16 | $1,139.73 |
| Last day of the month | 1 | $71.23 |
The daily rate never changes — 400,000 × 6.5% ÷ 365 = $71.23 — but the number of days between your signing and the first of the next month does. Moving a closing from the 1st to the last day frees up $2,065.76 in cash at settlement. That cash buys you 29 fewer days of interest before your first payment is due, so the trade only makes sense if you need the cash now or your seller's schedule forces the date.
Closing cost breakdown: what each line costs
- Origination fee: 0.5% to 1% of the loan amount — $2,000 to $4,000 on a $400,000 loan. This is the lender's profit line and the most negotiable number on the estimate. Some lenders quote 0% origination with a higher rate instead.
- Appraisal: $300 to $700 for a standard single-family valuation; $700 to $1,200 for a jumbo or complex property. You usually pay it at application, before settlement, so it may not appear on the Closing Disclosure.
- Credit report and verifications: $75 to $200 covering the tri-merge credit report, employment verification, and flood certification.
- Title insurance: $1,000 to $4,000 for the combined owner's and lender's policy on a $400,000 to $500,000 purchase. The owner's policy protects your ownership; the lender's is required. In about a third of states the seller customarily buys it.
- Title search and abstract: $200 to $400 to confirm no liens, judgments, or unreleased mortgages sit ahead of yours.
- Settlement or attorney fee: $500 to $1,500. Twelve states require an attorney at closing; elsewhere the settlement agent or escrow company charges this directly.
- Survey: $300 to $600 for a boundary survey. Lenders want it to confirm the improvements sit inside the lot lines.
- Recording fees: $100 to $300 paid to the county to record the deed and the deed of trust. Transfer taxes or stamps are separate and can add 0.1% to 2% of the price depending on the state.
- Prepaid interest: $71.23 per day on a $400,000 loan at 6.5%, collected for the days between closing and month end.
- Homeowners insurance: the first full year up front, typically $1,200 to $2,400, paid before the loan funds.
- Property tax escrow: two to six months of your annual bill held in reserve. On a $4,800 annual tax bill that is $800 to $2,400; closing in the fall usually means more months required.
- FHA upfront MIP: 1.75% of the loan amount — $7,093 on a $405,300 FHA loan — financed rather than paid in cash.
- VA funding fee: 2.15% on a first-use, zero-down VA loan — $8,600 on $400,000 — also financeable and exempt for borrowers with a service-connected disability.
Closing cost tips for 2026
- Collect three to five Loan Estimates inside a 14-day window. Rate shopping inquiries made within a short span are scored as one. Pull the quotes on the same day: an origination quote from Monday and a rate sheet from three weeks earlier are not comparable numbers.
- Compare the Loan Estimate, not the interest rate. Two offers at 6.50% can differ by $3,000 in lender fees. Ask each lender for the same loan amount, same points, same lock period, then compare "costs at closing" on page 2 of each estimate.
- Ask the seller for concessions up to the program cap. Conventional loans allow 3% to 9% depending on your down payment; FHA allows 6%; VA allows 4%. On a $500,000 sale that is $15,000 to $45,000 of potential relief, and it is taxable to the seller as gain, so sellers weigh it against a price cut.
- Time the settlement for the end of the month. Prepaid interest runs $71.23 a day on this loan, so closing on the 30th instead of the 1st frees $2,065.76 at the table. Confirm with the settlement agent first — a late-month date is the busiest week of every month.
- Price lender credits against a rate buydown. A $4,000 credit reduces cash to close by $4,000 but typically raises the rate about 0.125%, which on a $400,000 loan costs roughly $33 a month. Break-even is about 121 months, so credits make sense for short holds and points make sense for long ones. Model it in the mortgage points calculator.
- Check down payment assistance before you settle on a price. Most states and many cities offer grants or forgivable second mortgages for first-time buyers that stack on top of your own savings. Income limits and homebuyer education courses are common conditions; start the application before you write the offer.
- Do not finance the costs without checking the payment. Rolling $12,000 into a $400,000 loan raises the balance to $412,000, adds $75.85 a month, and costs $15,305 of extra interest over 360 payments. If it pushes the loan above 80% of value, it also buys you PMI you would otherwise avoid — see the PMI calculator.
Common mistakes with closing costs
- Budgeting the down payment and forgetting the costs. A $500,000 purchase with 20% down needs $112,090, not $100,000. Buyers who wire the down payment figure alone discover the shortfall three days before settlement, when there is no time to move money without raising fraud flags on a wire.
- Treating every fee as fixed. Taxes, recording charges, and escrow prepaids are set by your county and your tax bill. Origination, underwriting, discount points, and the settlement fee are quoted by businesses competing for your loan. Negotiating the wrong set wastes the conversation.
- Comparing a purchase estimate to a refinance estimate. Refinances run 3% to 6% because a new appraisal ($600), a new lender's title policy, and a full set of lender fees reset. A refinance quote that looks 1.5 points higher than your purchase quote is normal, not a red flag.
- Skipping the Closing Disclosure. Federal rules require it at least three business days before consummation, and any material change to the APR, the loan amount, or the final payment resets that clock. Read it against the Loan Estimate; a "changed circumstances" revision is common, an unexplained $2,000 jump is not.
- Underestimating escrow growth. Four months of tax reserve is based on today's bill. If your county raises the assessment 10% next year, your escrow payment rises with it and you may face a shortage. Ask for the current escrow analysis and stress-test the payment at the higher figure.
- Accepting a no-closing-cost refinance without pricing the rate. The lender pays your $12,000 of costs in exchange for a higher rate — typically 0.5% higher, which is $132.94 more every month on a $400,000 loan. That is $7,976 over 60 months, so the structure only wins if you sell or refinance again inside five years.
Frequently asked questions
How much are closing costs on a $400,000 mortgage? Expect 3% to 5% of the loan amount for a purchase, or $12,000 to $20,000, and 3% to 6% for a refinance. The itemized example on this page — $3,725 of lender fees, $3,825 of third-party fees, and $4,539.73 of prepaids and reserves — totals $12,089.73, which is 3.02% of a $400,000 loan.
Who pays closing costs, the buyer or the seller? The buyer normally pays, but the seller may contribute up to the loan program's cap: 3% to 9% on conventional loans depending on down payment, 6% on FHA, 4% on VA, and 6% on USDA. Anything above the cap is paid by you or negotiated into a lower sale price.
Can I roll closing costs into my mortgage? On a purchase, generally no — closing costs are cash unless a seller concession or assistance program covers them. On a refinance, yes: rolling $12,000 into a $400,000 loan adds $75.85 a month and $15,305 of interest, and it raises your loan-to-value, which can trigger PMI.
Are closing costs negotiable? Origination, underwriting, discount points, and the settlement fee are negotiable because competitors quote them. Appraisal, credit report, title insurance in most states, and county recording charges are not. Title insurance is shoppable in states that allow it, and asking two title companies for quotes often saves several hundred dollars.
What is the difference between the Loan Estimate and the Closing Disclosure? The Loan Estimate is the three-business-day disclosure that shows rate, terms, and itemized costs when you apply. The Closing Disclosure is the final five-page accounting you get at least three business days before signing. Differences must be explained under changed-circumstances rules.
How much cash do I need at closing? Down payment plus closing costs, plus any prepaid items the lender collects. On the worked example here that is $100,000 + $12,089.73 = $112,089.73. Funds must be sourced and seasoned, so large deposits made days before settlement will need a paper trail.
Do closing costs change if I lock my rate? The lock protects the rate, not the fees. A float-down policy, an extended lock past 30 to 60 days, or a changed closing date can alter the estimate. Ask what happens to lender credits and points if settlement slips past the lock expiration.
Are closing costs tax deductible? Most are not. Prepaid mortgage interest and property taxes generally are deductible in the year paid if you itemize, discount points may be deductible in full in the year paid, and seller-paid points are not yours to deduct. Mortgage insurance premiums have had temporary treatment — confirm the current year's rules with a tax professional.