Closing Costs Calculator
Closing costs are not one number, and the biggest line in the total is usually your own money coming back to you. This separates the fees from the prepaids and shows what you actually write a cheque for.
Closing cost and cash to close calculator
Line by line
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Typical range by category
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Why "2 to 5 percent" is not a useful answer
That range is true and almost useless. A borrower with 20 percent down and a clean file in a low-tax state can close near 2 percent. The same price in a state with a high transfer tax, with a lender charging a full point, and with six months of escrow collected, lands above 4 percent. The gap between the low and high ends of that range is often more than the buyer's entire furniture budget.
The way to get a real number is to price the four groups separately: lender fees, third-party services, government recording and transfer taxes, and prepaids. Only the first group is meaningfully negotiable, and only the first two are fees at all.
How the total is assembled
Discount points are a percentage of the loan, not the price: one point on a $320,000 loan is $3,200. Lender fees cover origination, underwriting and processing. Third-party costs are the appraisal, the title search and policy, the survey and the credit report. Government charges are recording fees and, in most states, a transfer tax based on price.
Prepaid interest is the daily interest from the closing date to the end of that month. At 6.5 percent on $320,000 the loan costs $56.99 a day, so closing on the 15th costs about $855. Closing on the last day of the month costs almost nothing in prepaid interest but pushes the first payment a month later, which is a cash-flow decision rather than a saving.
The escrow deposit is not a fee
Lenders collect two to six months of property tax and insurance up front so the escrow account has a cushion when the first bill arrives. On this loan that is $1,550 — three months of each. It is your money, sitting in an account that pays the bills, and it comes back to you at payoff or when the account is closed. It still has to be in the cheque at closing, which is why cash to close is always larger than the fees.
This is the single most common source of closing-table shock: the buyer budgeted for the down payment plus 3 percent, and the escrow deposit pushes the cheque several thousand dollars higher.
Reading the Loan Estimate
Page two of the Loan Estimate groups costs into boxes A through H. A is origination charges, B is services you cannot shop for, C is services you can shop for, E is taxes and other government fees, F is prepaids, G is the initial escrow deposit, and H is other. The number that matters for comparison shopping is A plus B plus C — the lender-controlled costs. Boxes F and G are largely arithmetic that follows from the loan amount and the closing date.
Seller concessions, if negotiated, appear as a credit and reduce the cash to close rather than the loan amount. They are capped by loan program: 3 percent of the price on a conventional loan with less than 10 percent down, 6 percent at 10 to 25 percent down, and 9 percent above that.
What is actually negotiable
Origination and points are negotiable, and the lever is shopping two or three lenders on the same day so the quotes are comparable. Title insurance is negotiable in most states and is often the largest single third-party line; asking for a reissue rate on a recently insured property can cut it by a third. Appraisal and survey fees are set by the provider, not the lender.
Transfer taxes are not negotiable anywhere — they are statutory, and in some states the custom of who pays them is fixed by law rather than by contract.
Frequently asked questions
How much are closing costs on a $400,000 house?
Roughly $11,000, or 2.8 percent, for a buyer with 20 percent down and one point. The range across states and lenders runs from about $8,000 to $18,000 on the same price, driven mostly by transfer taxes and escrow deposits.
Is the down payment part of closing costs?
No. Closing costs are the fees and prepaids; the down payment is separate. Cash to close is the two added together, which is why a buyer with 20 percent down needs about 23 percent of the price in cash.
Do sellers pay closing costs?
Sometimes, through a concession. The cap is typically 3 percent of the price below 10 percent down, 6 percent at 10 to 25 percent down, and 9 percent above 25 percent. A concession lowers your cash but not the loan amount.
What is prepaid interest at closing?
The daily interest on your loan from the closing date to the end of that month. At 6.5 percent on a $320,000 loan it is about $57 a day, so closing late in the month reduces it.
Why is my escrow deposit so large?
Lenders collect two to six months of taxes and insurance, plus a cushion of up to one-sixth of the annual total. On a $4,400 tax bill that is several hundred dollars per month collected up front.
Can closing costs be rolled into the loan?
On a refinance, usually yes. On a purchase, only through a lender credit at a higher rate, or a seller concession. Rolling costs into a purchase loan is generally not permitted because it reduces the down payment below program limits.
Which closing costs can I negotiate?
Origination fees, discount points and title insurance. Appraisal, survey and government fees are not negotiable, and transfer taxes are set by statute.
Disclaimer: This calculator estimates closing costs from the figures you enter. Actual charges vary by state, lender and closing date, and some items are set by statute. Compare the Loan Estimate you receive within three business days of applying.
Citing this page? FigureMill, “Closing Costs Calculator” (last reviewed October 31, 2026). Closing costs and cash to close itemised into lender fees, third-party costs, government charges and prepaids, from price, loan terms and fee inputs. https://figuremill.com/home-tax/closing-costs-calculator
Related: Mortgage payment calculator · Refinance break-even · Property tax calculator · All home tax tools