Closing Cost Calculator
Updated · By the CalculatorDash editorial team · How we check our maths
Quick answer
Buyers typically pay 2% to 5% of the price in closing costs. On a $400,000 home with 10% down, about 1% in lender fees, 0.6% for title and escrow, 0.5% transfer and recording taxes and four months of prepaid tax and insurance, closing costs come to roughly $11,200 and the cash to close is about $51,200.
How this calculator works
Closing costs are everything you pay to complete the purchase apart from the down payment: lender charges such as origination fees and points, title insurance and escrow or attorney fees, government transfer and recording taxes, appraisal and inspection, and prepaid items such as the first months of property tax and homeowner's insurance placed in escrow.
The biggest variable is location. Transfer taxes range from nothing in some US states to several percent in others, and in India stamp duty and registration typically add 5–8%. Adjust the percentages to your area.
Seller credits reduce the cash you bring to closing. In a slower market, asking the seller to cover part of the closing costs is often easier to win than an equal price cut.
The formula
- Closing costs
- loan × lender % + price × (title % + transfer %) + yearly tax & insurance ÷ 12 × prepaid months + other − credits
- Cash to close
- down payment + closing costs
Worked example
With $40,000 down on $400,000 the loan is $360,000. Lender fees of 1% are $3,600, title 0.6% is $2,400, transfer taxes 0.5% are $2,000, four months of tax and insurance at 1.5% a year are $2,000, plus $1,200 of inspection and appraisal: about $11,200, or 2.8% of the price. Cash to close is about $51,200.
Tips
- 01Compare the Loan Estimate from at least three lenders; fees vary more than rates.
- 02You can shop for some services, such as title insurance in many states, even if the lender suggests a provider.
- 03Schedule closing near the end of the month to reduce prepaid interest.
Frequently asked questions
How much are closing costs for a buyer?
Usually 2–5% of the purchase price in the US, depending on the loan and local taxes.
Can closing costs be rolled into the mortgage?
On a purchase, usually not directly, but a seller credit or a slightly higher rate in exchange for lender credits can cover them. On a refinance they can often be added to the loan.
Who pays closing costs, the buyer or the seller?
Both pay some. Buyers usually pay lender and title costs; sellers usually pay agent commissions and sometimes transfer taxes, depending on local custom.