Closing Cost Calculator
Estimate buyer closing costs and seller net proceeds, line by line. Buyers typically pay 2%–5% of the price; a $400,000 home with 20% down runs about $10,700 in this estimate.
Calculator
Key Takeaways
What You Should Know
- Freddie Mac says buyers should budget 2%–5% of the purchase price for closing costs, which covers lender fees, title and settlement charges, government fees and taxes, and prepaid insurance, interest and escrow.
- Third-party settlement costs and transfer taxes alone averaged $4,528 (1.04% of the price) on 2025 purchases, per LodeStar. They ranged from 0.39% in South Dakota to 3.07% in Delaware.
- Your Loan Estimate lists your actual costs. By law you get the Closing Disclosure at least three business days before closing, so compare the two line by line.
How it works
Calculation methodology
Short answer: plan on 2%–5% of the purchase price for closing costs, on top of your down payment. In this calculator’s default example, a $400,000 home with $80,000 down at 7.28% costs about $10,700 to close (2.7%) before any transfer tax, so you’d need about $90,700 in cash. States with high transfer taxes, buying down the rate with points, or an FHA or VA loan push the total toward the top of the range.
Itemized example: $400,000 purchase, 20% down, 7.28% 30-year fixed
| Cost | Amount | How it’s estimated |
|---|---|---|
| Origination fee | $3,200 | 1% of the $320,000 loan |
| Appraisal + credit report | $655 | Typical flat fees |
| Title insurance (owner’s + lender’s) | $2,400 | 0.6% of price |
| Title search, settlement, recording | $1,350 | Typical flat fees |
| Prepaid interest (15 days) | $957 | $320,000 × 7.28% ÷ 365 × 15 |
| Homeowners insurance, first year | $1,200 | 0.3% of price (minimum $1,200) |
| Initial escrow deposit | $1,000 | 2 months of property tax and insurance |
| Total before transfer tax | $10,762 | 2.7% of price |
Add your state or county transfer tax if the buyer pays it. Rates range from zero in many states to more than 1% in some high-tax places. For a benchmark on third-party settlement costs, LodeStar’s 2025 data puts the national average (title, settlement, recording and transfer taxes, without lender fees or prepaids) at $4,528, or 1.04% of the sale price.
The three buckets of closing costs
- Loan costs: origination or underwriting fees, discount points, appraisal, credit report, flood certification, and FHA upfront MIP or the VA funding fee.
- Title and government: title search and insurance, settlement or escrow fee, recording fees and transfer taxes.
- Prepaids and escrow: interest from closing to month-end, the first year of homeowners insurance, and an initial escrow deposit for future property tax and insurance bills. These aren’t fees. They’re costs you would pay anyway, collected up front.
Seller side: estimating net proceeds
Switch the calculator to Seller mode to estimate proceeds: sale price, minus the mortgage payoff, any commission you’ve agreed to, transfer tax where the seller pays it, title and settlement charges, and any concessions to the buyer. Since the 2024 NAR settlement, buyer-agent compensation is negotiated separately and is no longer set by the listing, so enter the commission terms you’ve actually agreed to.
Timeline and paperwork
- Loan Estimate: within three business days of applying. Use it to compare lenders.
- Closing Disclosure: at least three business days before closing. Check the rate, loan amount and cash to close against the Loan Estimate.
- Closing day: wire the cash to close only to instructions you’ve confirmed by phone with your title company, using a number you looked up yourself. Wire fraud targets home buyers.
Next, see the full monthly cost with the Mortgage Calculator, or check what price fits your income with the Mortgage Affordability Calculator.
Questions
Frequently Asked Questions
Assumptions
What this example assumes
- Lender fees: 1% origination, $600 appraisal, $55 credit report, plus any discount points you choose (1 point = 1% of the loan).
- Title and settlement: $350 title search, owner’s and lender’s title insurance at 0.6% of price, $850 settlement fee, $150 recording, plus the state transfer tax rate you select.
- Prepaids: 15 days of interest, one year of homeowners insurance (0.3% of price, minimum $1,200), and two months of tax and insurance escrow at a 1.2% property tax rate. FHA upfront MIP (1.75%) and the VA funding fee (2.3%) are added for those loan types. Actual fees vary by lender, county and title company.
Sources
Data sources
These sources support the inputs and assumptions used by this calculator. They are not personalized financial advice.
- My Home by Freddie Mac — What are closing costs?
Buyers typically pay 2%–5% of the purchase price; list of one-time fees and prepaid items.
- National Mortgage News — Purchase mortgage closing costs dipped in 2025 (LodeStar data)
2025 average purchase closing costs of $4,528 (1.04% of price) for settlement, title, recording and transfer taxes; state highs and lows.
- CFPB — When do I get a Closing Disclosure?
The Closing Disclosure must be received at least three business days before closing.
- Freddie Mac PMMS
30-year fixed average of 7.28% for the week of October 1, 2026, used as the default rate.