Closing Cost Calculator
The '2% to 5%' rule of thumb for closing costs is quoted against two different bases — Zillow and Allstate say percent of the purchase price, U.S. Bank, Bankrate and Fannie Mae say percent of the loan amount — and almost no calculator tells you which one it is using. On a 20%-down purchase the two bases differ by 25%, which is a real gap in a budget that also has to absorb the down payment. This calculator replaces the rule of thumb with the four buckets of a CFPB Loan Estimate — lender charges, third-party services, government charges, and prepaid tax and insurance escrow — each adjustable, so you can match your Loan Estimate line by line once it arrives. The total is reported against both bases explicitly, and the bottom line is cash to close: down payment plus closing costs, the wire you actually send on closing day.
The short answer
Buyer closing costs typically run 2-5% — but of what, exactly? Sources disagree: Zillow quotes the purchase price, Bankrate and Fannie Mae quote the loan amount. On a $350,000 home with 20% down, itemized costs land near $8,000 — 2.9% of the $280,000 loan or 2.3% of the price — plus the $70,000 down payment makes $78,000 cash to close.
Closing costs sit on top of this.
Lender's charge — 0.5-1% is typical; 1% is the working default.
Third-party flat fees, about $500 + $100.
Varies by state and price; $1,500 is a workable mid estimate. Your Loan Estimate will replace this.
State-dependent: 0 in some states, 2%+ in others. Check yours.
Lenders commonly collect 2-6 months of tax + insurance at closing.
Estimated closing costs
$8,000.00
2.86% of the loan amount — or 2.29% of the purchase price. Same dollars, two bases: sites quoting "2-5%" pick whichever suits them.
- Loan origination & underwriting
- $2,800.00
- Appraisal & credit report
- $600.00
- Title search, insurance & settlement
- $1,500.00
- Transfer tax & recording
- $1,750.00
- Prepaid tax & insurance escrow
- $1,350.00
- Cash to close
- $78,000.00
Lender
Third-party
Third-party
Government
Prepaid
Down payment $70,000.00 + closing costs. The wire you actually send on closing day.
How to use Closing Cost Calculator
- 1
Enter price and down payment
Closing costs sit on top of the down payment. The loan amount — price minus down payment — drives the lender-side fees.
- 2
Check the fee defaults against your Loan Estimate
Origination defaults to 1% of the loan, appraisal plus credit to $600, title and settlement to $1,500, transfer tax to 0.5% of price — adjust each to your state and lender. Transfer tax is the wildcard: it is zero in some states and 2%+ in others.
- 3
Read both percentages and cash to close
The result shows the total as a percent of the loan and of the price, itemized by bucket, with cash to close — down payment plus costs — as the bottom line to plan for.
Why use this tool
- Itemized into the four CFPB Loan Estimate buckets, each editable
- Total shown against both the loan amount and the price — the ambiguity named
- Cash-to-close figure: down payment plus costs, what the buyer must wire
- Transfer tax input flagged as the state-dependent wildcard (0-2%+)
- Prepaid escrow modeled from real months collected, not a flat guess
- Private — the price and your finances never leave the browser
Frequently asked questions
- How much are closing costs on a house?
- Typically 2-5% — but the base varies by source: Zillow and Allstate quote the purchase price; U.S. Bank, Bankrate and Fannie Mae quote the loan amount. On a $350,000 home with 20% down, this calculator's itemized default case lands at $8,000 — 2.9% of the loan, 2.3% of the price. Your Loan Estimate, three days after application, replaces all estimates.
- What is the difference between closing costs and cash to close?
- Closing costs are the fees; cash to close is everything you bring to the table — down payment plus closing costs (minus any credits or earnest money already paid). On the $350,000 example that is $70,000 down plus $8,000 in costs, a $78,000 wire. Budgeting the down payment alone is how buyers get surprised a week before closing.
- What fees are included in closing costs?
- Four buckets: lender charges (origination, underwriting, points), third-party services (appraisal, credit report, title search, lender's title insurance, settlement), government charges (recording, transfer tax), and prepaids (first-year insurance, property tax escrow deposits, prepaid interest). Recurring costs like the monthly payment itself are not closing costs.
- Why is the percentage basis so different between websites?
- Both are defensible and nobody standardized: a percentage of the loan tracks the lender-driven fees, a percentage of the price tracks the whole transaction. They diverge as the down payment grows — at 50% down, the same dollars are nearly double the percentage of loan. That is why this calculator itemizes dollars first and shows both percentages second.
- Who pays closing costs — buyer or seller?
- Buyers pay their loan-driven fees and prepaids; sellers traditionally pay the commission and sometimes a share of buyer costs as a negotiated concession. In a buyer's market, seller credits toward closing costs are a common lever; in a hot market, expect to cover them. Either way the itemized estimate is the same — only the payer moves.
- Can I reduce closing costs?
- Partly. Shop the services you are allowed to shop (title, survey), ask about lender credits that trade a higher rate for lower upfront fees, close late in the month to trim prepaid interest, and challenge junk fees against your Loan Estimate — lenders must honor the estimate they issued. Appraisal, recording and transfer taxes are largely what they are.
- When will I know the exact amount?
- The lender issues a Loan Estimate within three business days of your application — an itemized, binding-in-shape forecast you can compare against this calculator. The final Closing Disclosure arrives three business days before closing; line-by-line differences larger than tolerance thresholds are legally challengeable.
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