Closing Costs Calculator
Estimate every closing cost component — lender fees, title charges, government taxes, and prepaid items — so you know exactly how much cash you need on closing day.
SECTION A — LOAN & PROPERTY
SECTION B — LENDER FEES
SECTION C — TITLE & LEGAL
SECTION D — GOVT FEES
SECTION E — PREPAIDS & ESCROW
How to Use
- 1Enter your home purchase price, down payment, interest rate, and the day of the month you plan to close — the closing day determines how many days of prepaid interest are due at closing.
- 2Enter all lender fees — origination fee, discount points, appraisal, credit report, and application fee — your lender's Loan Estimate will have these exact figures.
- 3Enter title, legal, and government fees — these vary by state and lender but your title company will provide exact amounts before closing.
- 4Enter your prepaid and escrow amounts for insurance and property tax — lenders typically require 12 months prepaid insurance and 2-3 months of each in escrow.
Example Calculation
Inputs
Purchase Price: $350,000 | Down Payment: $35,000 (10%) | Loan Amount: $315,000 | Rate: 7.0% | Closing Day: 15th (15 days prepaid interest) | Origination: 1.0% | Points: 0% | Appraisal: $500 | Credit Report: $35 | Application: $0 | Title Search: $300 | Lender Title Ins: $1,000 | Owner Title Ins: $750 | Settlement: $1,000 | Recording: $150 | Transfer Tax: 0.5% | Insurance: $1,200/yr | Prepaid Ins: 12 months | Ins Escrow: 2 months | Tax: $4,200/yr | Tax Escrow: 3 months
Verified Results
"Closing costs typically range from 2% to 5% of the loan amount. At 3.43% of purchase price, this scenario falls within the normal range. Your lender is required to provide a Loan Estimate within 3 business days of application with itemized closing costs."
Frequently Asked Questions
Q1: What closing costs are negotiable?
A1: Several closing costs are negotiable or can be shopped. Lender fees such as origination fees and application fees vary widely between lenders and can be negotiated. Title insurance and settlement fees can also be shopped in most states. You can ask the seller to cover some closing costs as a concession — this is common in buyer's markets. Transfer taxes and recording fees are set by the government and cannot be negotiated.
Q2: What is prepaid interest and why do I pay it at closing?
A2: Prepaid interest covers the mortgage interest from your closing date to the end of that month. Since your first mortgage payment is due on the 1st of the month following a full month after closing, the lender collects the fractional month upfront. Closing on the 15th of a 30-day month means 15 days of prepaid interest. On a $315,000 loan at 7.0%, that equals $906.16. Closing earlier in the month means more prepaid interest; closing later means less.
Q3: What is the difference between prepaid insurance and insurance escrow?
A3: Prepaid insurance is your first full year of homeowners insurance paid at closing — the lender requires proof of coverage before funding the loan. Insurance escrow is an additional 2 months collected to start your escrow account, ensuring funds are available for the next renewal. So you effectively pay 14 months of insurance at closing: 12 months prepaid plus 2 months escrow.
Q4: What is a Loan Estimate and how does it relate to this calculator?
A4: A Loan Estimate is a standardized 3-page document your lender must provide within 3 business days of receiving your loan application. It itemizes all estimated closing costs in the same categories this calculator uses — lender fees, title fees, prepaids, and escrow. Use the Loan Estimate numbers as inputs here for a precise calculation. Compare Loan Estimates from multiple lenders to find the best deal.
Q5: Can closing costs be rolled into the loan?
A5: In most cases, closing costs cannot be rolled into a conventional purchase loan — they must be paid in cash at closing. However, some loan types allow it: VA loans allow the funding fee to be financed, FHA loans allow the UFMIP to be financed, and some refinance loans allow closing costs to be rolled in. If you cannot cover closing costs, ask your lender about lender credits — you accept a slightly higher interest rate in exchange for the lender covering some or all closing costs.
This calculator provides estimates for informational purposes only. Actual closing costs vary by state, county, lender, and title company. Consult your lender's official Loan Estimate and Closing Disclosure for exact figures.