How to use this closing cost calculator
- Enter the home price and down payment. The loan amount is the price minus the down payment, and it drives the lender charges and prepaid interest.
- Add your interest rate, state and expected closing date. The starting rate is the 7.03% average 30-year fixed rate as of September 24, 2026 (Freddie Mac), an example rather than a quote. The state sets the property tax rate and homeowners insurance used for prepaids and escrow, and the closing day sets the days of prepaid interest.
- Replace the example fees with your Loan Estimate. Open “Lender, title & other fees” and enter the amounts your lender and title company quoted. The values it starts with are placeholders, not averages.
- Add any seller credit you negotiated, then read the total closing costs and the cash to close. The table at the bottom of the results shows how both change at other prices and down payments.
What is included in closing costs?
The CFPB’s Loan Estimate and Closing Disclosure group closing costs into lettered sections on page 2. This calculator follows the same order, so you can compare its result with the Loan Estimate your lender sends you (see the CFPB’s Loan Estimate explainer and 12 CFR 1026.37).
| Section | What it covers | How this calculator estimates it |
|---|---|---|
| A. Origination charges | Upfront fees charged by your lender, such as application, origination, underwriting and processing fees, and points. | A percentage of the loan (example value). |
| B. Services you cannot shop for | Third-party services the lender requires and chooses, such as an appraisal or credit report. | Appraisal and credit report (example values). |
| C. Services you can shop for | Required services you may choose yourself. Title services are usually the largest. | Title and settlement fees and survey (example values). |
| D. Total loan costs | A + B + C. | Sum of the three sections. |
| E. Taxes and other government fees | Recording fees and transfer taxes. | Amounts you enter (transfer taxes start at $0). |
| F. Prepaids | Homeowner’s insurance premium, prepaid interest, property taxes and any mortgage insurance premium. | A 12-month insurance premium, per-day interest times days, and prepaid tax months. |
| G. Initial escrow payment | Monthly amounts for insurance and taxes times the months collected at closing. | Monthly tax and insurance times 2 months (editable). |
| H. Other | Charges that are part of the closing but not listed elsewhere, such as inspection fees and HOA charges paid at closing. | Home inspection and other fees (example values). |
| I and J. Totals | I = E + F + G + H. J = D + I, the total closing costs. | Sum of the sections. |
How the estimate is calculated
Most lines are amounts you enter or percentages of the loan. Two pieces are real math: prepaid interest, and the cash you need once the seller credit is taken off.
I = L × r ÷ 365 × (D − d + 1)
- I
- prepaid interest due at closing
- L
- loan amount (home price minus down payment)
- r
- annual interest rate as a decimal
- D
- days in the closing month
- d
- day of the month you close
C = P × k + J − S
- C
- cash to close
- P
- home price
- k
- down payment as a share of the price
- J
- total closing costs (sections D + E + F + G + H)
- S
- seller credit applied, never more than J
Worked example
On a $400,000 home with 20% down, the loan is L = $320,000. At r = 7.03% the interest is $320,000 × 7.03% ÷ 365 = $61.63 a day. Closing on June 15 in a 30-day month means 30 − 15 + 1 = 16 days of prepaid interest, or $986.13.
Escrow uses the median state figures: a 0.754% tax rate on $400,000 is $251.37 a month, and $2,397 of insurance is $199.75 a month. Escrowing 2 months of each comes to $902.23. The insurance premium for the first year ($2,397) is a prepaid in section F. With the example fees, total closing costs come to $9,685.36 (2.42% of the price, 3.03% of the loan), so cash to close is $80,000 + $9,685.36 = $89,685.36.
Closing costs by home price and down payment
The tables use the calculator’s starting inputs (7.03% rate, June 15 closing, the median state’s tax and insurance, and the example fees). Fees in dollars stay the same at every price, while origination charges, prepaid interest and property tax scale with the price and loan.
| Home price | 5% down | 10% down | 15% down | 20% down |
|---|---|---|---|---|
| $200,000 | $8,383 | $8,303 | $8,222 | $8,141 |
| $300,000 | $9,277 | $9,156 | $9,034 | $8,913 |
| $400,000 | $10,170 | $10,009 | $9,847 | $9,685 |
| $500,000 | $11,064 | $10,862 | $10,660 | $10,458 |
| $750,000 | $13,297 | $12,994 | $12,691 | $12,388 |
| Home price | 5% down | 10% down | 15% down | 20% down |
|---|---|---|---|---|
| $200,000 | $18,383 | $28,303 | $38,222 | $48,141 |
| $300,000 | $24,277 | $39,156 | $54,034 | $68,913 |
| $400,000 | $30,170 | $50,009 | $69,847 | $89,685 |
| $500,000 | $36,064 | $60,862 | $85,660 | $110,458 |
| $750,000 | $50,797 | $87,994 | $125,191 | $162,388 |
How much are closing costs?
Freddie Mac says closing costs generally range between 2% and 5% of your purchase price. On a $400,000 home that is $8,000 to $20,000. The estimate above, $9,685, falls inside that range. It is a starting point, not a quote: lender fees, title charges, transfer taxes and the months of tax and insurance your lender collects all vary. Only the state tax rate and insurance premium come from data; the fee amounts are examples for you to replace.
Who pays closing costs?
The CFPB says that when you buy a home you generally pay all of the costs of the transaction, although depending on the contract or state law the seller may pay some of them. A negotiated credit is not free: the CFPB notes the seller will usually require a higher price to cover it, and a lender credit typically means a higher interest rate or a larger loan (CFPB).
For a conventional loan sold to Fannie Mae on a primary residence, seller contributions are limited by the loan-to-value ratio and are calculated on the lower of the sale price or appraised value, not the loan. They also cannot exceed the borrower’s closing costs, and they cannot be used for the down payment (Fannie Mae Selling Guide B3-4.1-02). On the $400,000 example:
| Loan-to-value ratio | Maximum seller contribution | On a $400,000 price |
|---|---|---|
| Above 90% | 3% | $12,000 |
| 75.01% to 90% | 6% | $24,000 |
| 75% or less | 9% | $36,000 |
Other programs, such as FHA and VA loans, have their own rules.
What are prepaids and escrow?
Prepaids (section F) are costs you pay ahead of time. The CFPB describes them as the interest on your loan from the time you close to the end of that month, and notes it is also common to pay the first year’s homeowner’s insurance premium at closing. Interest is typically paid one month in arrears, so if you close on September 20 you prepay the 11 days through September 30 (CFPB factsheet). This calculator counts the closing day and divides the year into 365 days; some lenders use a 360-day year, so expect a small difference.
The initial escrow payment (section G) starts your escrow account, which lets you pay insurance and property taxes monthly with your mortgage payment instead of in large lump sums. Freddie Mac says most lenders require two months of these reserves up front, and federal rules (Regulation X) cap the cushion a servicer may hold at one-sixth of the estimated annual payments, which is two months’ worth (12 CFR 1024.17). The actual deposit can be larger if a tax bill or insurance renewal falls due soon after closing, so use the months shown on your Loan Estimate. The monthly amount you would escrow in the example is $451.12; see the property tax calculator and mortgage calculator for the payment itself.
How to lower your closing costs
- Compare Loan Estimates. The CFPB says to focus on the fees that vary by lender: the origination charges in section A, the services in section B and any lender credits (CFPB).
- Shop for section C services. Title services are the largest costs there, and the CFPB says research suggests borrowers who shop could save as much as $500 on title services alone. Your lender is required to give you a list of providers (CFPB).
- Know what can change. Under 12 CFR 1026.19(e)(3), a lender’s estimate of a charge is generally in good faith only if you are not charged more than the Loan Estimate shows, unless a permitted revision applies. The exceptions: third-party services you may shop for and recording fees can rise by no more than 10 percent in total, while prepaid interest, insurance premiums, escrow amounts and services from providers you choose that are not on the lender’s list can change.
- Ask for a seller credit, keeping the limits above in mind. Freddie Mac says a seller may agree to cover some or all closing costs, and that it is more likely in a buyer’s market. Assistance programs for down payments and closing costs also exist, especially for first-time buyers (Freddie Mac).
- Close later in the month. Interest accrues from the closing day, so a closing on June 29 has 2 days of prepaid interest ($123) versus 30 days ($1,849) on June 1. That lowers the cash due that day, but it changes when you pay the interest more than how much the loan costs.
Points, lender credits and no-closing-cost mortgages
The CFPB explains that one discount point equals one percent of the loan amount, which is $3,200 on the $320,000 example loan, and that paying points lowers your interest rate. With a lender credit the trade runs the other way: you accept a higher rate and the lender gives you money toward closing costs, so you pay less up front and more over time (CFPB). The CFPB suggests asking a loan officer for offers with and without points or credits and comparing the total cost over a few time frames you might keep the loan.
A no-closing-cost mortgage works the same way. The CFPB says lenders can offer one by charging a higher interest rate and giving you a credit, or by adding the closing costs to your loan amount, and that a higher rate means you pay more over time while a higher loan amount raises your payments and reduces your equity (CFPB). To compare, run this calculator once with each offer’s rate and fees, then compare the monthly payment with the mortgage calculator.
Closing costs vs. down payment
Both come due at closing, and cash to close is the sum. At the starting inputs on a $400,000 home, 5% down means $20,000 down plus $10,170 in closing costs, or $30,170 to close. With 20% down it is $80,000 plus $9,685, or $89,685. Closing costs barely change with the down payment, because only the loan-based items (origination charges and prepaid interest) move, so budget for them separately from the down payment. To see what price fits your savings and income, use the house affordability calculator.
Closing costs by state
Two prepaid and escrow items depend on where the home is: property tax and homeowners insurance. The table applies each state’s statewide effective property tax rate and average homeowners insurance premium to the same $400,000 home, with a 12-month insurance premium at closing and 2 months of tax and insurance in escrow. That part of closing costs runs from $1,043 in Hawaii to $10,386 in Florida. Transfer taxes, title insurance rates and recording fees also vary by state and county, but they are not in the dataset, so use your Loan Estimate for them.
| State | Property tax rate | Avg. insurance / yr | Monthly escrow | Insurance premium + escrow at closing |
|---|---|---|---|---|
| Alabama | 0.38% | $3,716 | $436.83 | $4,590 |
| Alaska | 1.06% | $1,492 | $476.33 | $2,445 |
| Arizona | 0.43% | $2,397 | $342.78 | $3,083 |
| Arkansas | 0.52% | $3,195 | $438.32 | $4,072 |
| California | 0.71% | $1,653 | $373.38 | $2,400 |
| Colorado | 0.49% | $5,511 | $623.32 | $6,758 |
| Connecticut | 1.66% | $2,132 | $729.70 | $3,591 |
| Delaware | 0.47% | $1,461 | $278.72 | $2,018 |
| District of Columbia | 0.63% | $1,558 | $338.63 | $2,235 |
| Florida | 0.75% | $8,471 | $957.28 | $10,386 |
| Georgia | 0.74% | $2,301 | $439.75 | $3,181 |
| Hawaii | 0.27% | $738 | $152.27 | $1,043 |
| Idaho | 0.43% | $2,412 | $343.77 | $3,100 |
| Illinois | 1.92% | $2,802 | $874.63 | $4,551 |
| Indiana | 0.74% | $2,869 | $485.22 | $3,839 |
| Iowa | 1.29% | $3,148 | $693.03 | $4,534 |
| Kansas | 1.25% | $5,289 | $857.32 | $7,004 |
| Kentucky | 0.71% | $4,471 | $610.18 | $5,691 |
| Louisiana | 0.53% | $5,185 | $609.35 | $6,404 |
| Maine | 0.91% | $1,299 | $410.78 | $2,121 |
| Maryland | 0.95% | $2,242 | $503.43 | $3,249 |
| Massachusetts | 1.00% | $2,112 | $509.67 | $3,131 |
| Michigan | 1.18% | $3,071 | $647.75 | $4,367 |
| Minnesota | 1.02% | $3,333 | $616.42 | $4,566 |
| Mississippi | 0.65% | $2,602 | $435.07 | $3,472 |
| Missouri | 0.79% | $3,783 | $580.05 | $4,943 |
| Montana | 0.69% | $3,221 | $498.72 | $4,218 |
| Nebraska | 1.42% | $5,513 | $933.12 | $7,379 |
| Nevada | 0.47% | $1,876 | $313.17 | $2,502 |
| New Hampshire | 1.46% | $1,324 | $597.63 | $2,519 |
| New Jersey | 1.89% | $1,449 | $749.65 | $2,948 |
| New Mexico | 0.63% | $3,497 | $502.92 | $4,503 |
| New York | 1.45% | $1,844 | $638.47 | $3,121 |
| North Carolina | 0.61% | $3,799 | $521.18 | $4,841 |
| North Dakota | 0.96% | $2,846 | $556.60 | $3,959 |
| Ohio | 1.22% | $2,109 | $584.02 | $3,277 |
| Oklahoma | 0.75% | $5,378 | $699.10 | $6,776 |
| Oregon | 0.78% | $1,647 | $398.22 | $2,443 |
| Pennsylvania | 1.16% | $1,434 | $505.43 | $2,445 |
| Rhode Island | 1.07% | $2,379 | $555.65 | $3,490 |
| South Carolina | 0.45% | $2,870 | $387.97 | $3,646 |
| South Dakota | 1.02% | $3,740 | $650.07 | $5,040 |
| Tennessee | 0.45% | $3,198 | $415.63 | $4,029 |
| Texas | 1.31% | $4,582 | $819.03 | $6,220 |
| Utah | 0.49% | $1,771 | $309.48 | $2,390 |
| Vermont | 1.42% | $1,017 | $559.62 | $2,136 |
| Virginia | 0.71% | $1,939 | $398.85 | $2,737 |
| Washington | 0.79% | $1,766 | $408.93 | $2,584 |
| West Virginia | 0.52% | $1,961 | $335.35 | $2,632 |
| Wisconsin | 1.25% | $1,836 | $569.23 | $2,974 |
| Wyoming | 0.57% | $2,075 | $364.08 | $2,803 |
The calculator’s default state figures are the median of these states: 0.75% property tax and $2,397 a year insurance. Tax rates are median real estate taxes paid ÷ median home value, from the U.S. Census Bureau American Community Survey (2024 ACS 1-year). Insurance is the average quoted annual premium for $300,000 of dwelling coverage (Insurance.com, retrieved 2026-09-28). These are statewide estimates: your county’s rate and your own quotes will differ. The dataset also notes that in states with assessment caps that reset on sale, such as California, Florida and Michigan, a new buyer usually pays a higher effective rate than the statewide figure.
What this calculator does not include
- Seller closing costs. What the seller pays at closing is separate from what you pay.
- Refinance and cash-out costs. This is a purchase estimate; see the refinance calculator.
- Program fees: the FHA upfront mortgage insurance premium, the VA funding fee and USDA fees. See the FHA loan calculator and VA loan calculator.
- Mortgage insurance premiums, lender credits, financed closing costs and the earnest money deposit you have already paid.
- HOA transfer and attorney fees. Add them under “Other fees” if they apply.
- Exact fees. Origination charges, appraisal, title, recording and inspection amounts are examples. Your Loan Estimate has the real numbers.
Frequently asked questions
How much are closing costs on a house?
Freddie Mac says closing costs generally range between 2% and 5% of the purchase price. On a $400,000 home that is $8,000 to $20,000. With the example fees in this calculator, the estimate for that home is $9,685, or 2.4% of the price. Your total depends on your lender, title costs, state and prepaid taxes and insurance, so replace the examples with your Loan Estimate.
Who pays closing costs, the buyer or the seller?
The buyer generally pays them. The CFPB says a home buyer generally pays all the costs of the transaction, although depending on the contract or state law the seller may pay some. A seller credit toward your closing costs usually comes with a higher price, and a lender credit means a higher interest rate or a larger loan. Enter an agreed seller credit in the calculator to see the cash you still need.
What is cash to close?
Cash to close is the money you bring to closing: your down payment plus closing costs, minus any seller credit. In the example it is $80,000 + $9,685 = $89,685. The Loan Estimate and Closing Disclosure also account for a deposit you already paid, and the CFPB notes you will typically need a cashier's check or wire transfer for the final amount.
What are prepaids at closing?
Prepaids are costs you pay up front at closing, listed in section F of the Loan Estimate: the homeowner's insurance premium, prepaid interest, any mortgage insurance premium and, in some cases, property taxes. In the example the insurance premium is $2,397 and prepaid interest is $986 for 16 days. The initial escrow deposit is listed separately in section G and adds $902.
How is prepaid interest calculated?
This calculator estimates prepaid interest as the loan amount times the rate, divided by 365, times the days from your closing day through the end of that month. The CFPB explains that interest starts to accrue on the closing day and is typically prepaid to month-end because the first payment covers the following month. Here that is $61.63 a day for 16 days, or $986.13. Some lenders use a 360-day year, so their per-day figure can differ slightly.
What is a no-closing-cost mortgage?
A no-closing-cost mortgage is a loan where you do not pay closing costs out of pocket because the lender covers them another way. According to the CFPB, lenders can charge a higher interest rate in exchange for a credit, or add the closing costs to your loan amount. Either way you pay more over time, through a higher rate or a larger balance, so compare total costs over the years you expect to keep the loan.
How can I lower my closing costs?
Compare Loan Estimates, shop for the services in section C and negotiate. The CFPB says to focus on the fees that vary by lender, and its research suggests borrowers who shop around for closing services could save as much as $500 on title services alone. You can also ask the seller for a credit, though the CFPB notes it usually comes with a higher price, and look into down payment and closing cost assistance programs.
Is there a limit on how much the seller can pay?
Yes, for many loans there is. For a conventional loan sold to Fannie Mae on a primary residence, seller contributions are capped, as a share of the lower of the sale price or appraised value, at 3% when the loan-to-value ratio is above 90%, 6% from 75.01% to 90%, and 9% at 75% or less. They also cannot exceed the buyer's closing costs. Other loan programs set their own limits.