Closing Costs Calculator
Estimate buyer or seller closing costs, cash to close, or net proceeds with an itemized, transparent breakdown.
Transaction inputs
Advanced fees and prepaids
Itemized breakdown Buyer
Estimates for planning purposes only. Your Loan Estimate and Closing Disclosure will provide actual figures.
How to Use This Calculator
Pick buyer or seller, enter the purchase price, and adjust the down payment mode (percent or amount). The calculator refreshes when you tweak any field so you can model different scenarios instantly.
Use the Advanced Fees panel to include points, origination, title insurance allocations, transfer taxes, prepaids for taxes and insurance, commissions, and seller credits. Down payment inputs stay in sync and only buyer-specific fields are shown based on the selected role.
Methodology
The engine mirrors industry formulas: buyer closing costs sum lender and title fees, third-party services, and prepaid escrows. Seller totals include title, transfer taxes, commissions, and payoffs. Prepaid interest converts the per-diem rate into an up-front amount, and escrows convert annual or monthly figures into the initial deposit.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
Full original guide (expanded)
Data Source and Methodology
Primary references:
- Consumer Financial Protection Bureau (CFPB), “Closing costs explained,” updated 2024.
- Fannie Mae, “Your Home – Closing Costs Calculator,” 2024.
Where state or lender-specific schedules vary, the tool uses industry-typical ranges and lets you adjust line items to mirror your transaction.
Glossary of Variables
- Purchase price: Contract price of the property.
- Down payment: Cash contribution by the buyer at closing.
- Loan amount: Price minus down payment.
- Origination fee (%): Lender charge as a percent of loan amount.
- Discount points (%): Upfront interest to reduce the mortgage rate (1 point = 1% of loan).
- Appraisal, credit report, inspection: Third-party underwriting fees.
- Title insurance: Lender’s policy (buyer) and owner’s policy (often seller); customs vary by state.
- Transfer taxes: State or local tax on the transfer of property.
- Recording fees: Government charges for recording the deed and mortgage.
- Prepaid interest: Interest collected from closing to first payment.
- Escrows: Initial deposits for taxes and insurance.
- Seller concessions: Credits paid by the seller to the buyer, reducing both cash to close and net proceeds.
- Commission: Real estate brokerage fees, typically paid by the seller.
- Mortgage payoff: Outstanding balance the seller pays off at closing.
How It Works: A Step-by-Step Example
Scenario: Buyer purchasing a $450,000 home with 20% down, 6.5% interest, 0 points, 0.5% origination, lender’s title 0.25%, owner’s title paid by seller, transfer tax 0.3% paid by seller, appraisal $600, credit $40, inspection $500, recording $125, 15 days per-diem, property tax 1.0% with 3 months escrow, annual insurance $1,200 with 3 months escrow, seller credits $0.
- Loan = 450,000 − 90,000 = $360,000
- Origination = 360,000 × 0.5% = $1,800
- Lender title = 450,000 × 0.25% = $1,125
- Per-diem interest = 360,000 × 6.5% × 15/365 ≈ $962.47
- Tax escrow = 450,000 × 1.0% × 3/12 = $1,125
- Insurance escrow = 1,200/12 × 3 = $300
- Other fees = 600 + 40 + 500 + 125 = $1,265
- Buyer closing costs ≈ 1,800 + 1,125 + 962.47 + 1,125 + 300 + 1,265 = $6,577.47
- Cash to close = 90,000 + 6,577.47 − 0 = $96,577.47
This fits within typical buyer cost ranges (about 1.5% of price here, excluding owner’s title and transfer tax paid by the seller).
Frequently Asked Questions (FAQ)
How do closing costs differ from the down payment?
The down payment reduces the loan amount. Closing costs are additional fees and prepaids required to complete the transaction.
Can I roll closing costs into the loan?
Rolling costs into the loan may require a higher price or lender credit; refinance programs more commonly allow it. Program rules apply.
Are the estimates legally binding?
No. They are planning estimates. Your lender’s Loan Estimate and Closing Disclosure detail your actual charges.
Do I need an owner’s title policy?
It’s optional but strongly recommended to protect ownership. Many markets have the seller pay it, but the payor is negotiable.
Why do costs vary by location?
State and local transfer taxes, title premiums, and recording schedules vary widely, as do customary payor splits.
What if my down payment exceeds the purchase price?
That’s invalid. The tool will prompt you to correct the value—down payment cannot exceed the price.
How can I reduce cash to close?
Negotiate seller credits, seek lender credits in exchange for a higher rate, or adjust discretionary items like discount points.