Closing Cost Calculator
Type the lines from your Loan Estimate and see three numbers: what the loan costs, what goes to prepaids and escrow, and the cash you bring to closing.
Private by design. Your numbers stay on this device.
Educational estimates only. Not financial, tax, or lending advice.
Published
What are closing costs, and how much cash will I need?
Closing costs are the fees and up-front payments due when the loan closes. The CFPB’s sample Loan Estimate, a $180,000 purchase with a $162,000 loan, shows $5,672 in loan costs, $1,280 in prepaids and escrow, and $8,054 in total closing costs.
The cash to close is a different number. Add the down payment, subtract the earnest money already paid and any credits, and that sample comes to $16,054. The calculator below reproduces every one of those totals when you load the sample.
Your closing costs
Loan costs
$5,672
Sections A, B and C: what you pay the lender and the services it orders.
Prepaids and escrow
$1,280
Sections F and G: $867 prepaid and $413 into escrow.
Cash to close
$16,054
Down payment plus total closing costs, less credits and deposit.
Total closing costs (J) are $8,054, which is 4.97% of the loan and 4.47% of the price.
Fannie Mae allows seller contributions up to 6% of the price at this loan-to-value, which is $10,800. Your seller credit of $0 is within it.
Line by line, in Loan Estimate order
Type each fee from your Loan Estimate. Every fee starts at $0. The tags show whether you can shop for the service and how far the fee can rise before the Closing Disclosure.
| A. Origination charges | $1,802 |
|---|---|
| Discount points (0.25% of the loan)Cannot shop. Cannot rise. | $405 |
| Origination feeCannot shop. Cannot rise. | |
| Application feeCannot shop. Cannot rise. | |
| Underwriting feeCannot shop. Cannot rise. | |
| Processing feeCannot shop. Cannot rise. | |
| B. Services you cannot shop for | $672 |
| Appraisal feeCannot shop. Cannot rise. | |
| Credit report feeCannot shop. Cannot rise. | |
| Flood determination feeCannot shop. Cannot rise. | |
| Flood monitoring feeCannot shop. Cannot rise. | |
| Tax monitoring feeCannot shop. Cannot rise. | |
| Tax status research feeCannot shop. Cannot rise. | |
| C. Services you can shop for | $3,198 |
| Pest inspection feeCan shop. 10% basket if from the lender's list, no limit if you chose it, cannot rise if the lender's affiliate. | |
| Survey feeCan shop. 10% basket if from the lender's list, no limit if you chose it, cannot rise if the lender's affiliate. | |
| Title: insurance binderCan shop. 10% basket if from the lender's list, no limit if you chose it, cannot rise if the lender's affiliate. | |
| Title: lender's title policyCan shop. 10% basket if from the lender's list, no limit if you chose it, cannot rise if the lender's affiliate. | |
| Title: settlement agent feeCan shop. 10% basket if from the lender's list, no limit if you chose it, cannot rise if the lender's affiliate. | |
| Title: title searchCan shop. 10% basket if from the lender's list, no limit if you chose it, cannot rise if the lender's affiliate. | |
| E. Taxes and other government fees | $85 |
| Recording fees and other taxesCannot shop. 10% basket. | |
| Transfer taxes (enter your own)Cannot shop. Cannot rise. | |
| H. Other | $1,017 |
| Title: owner's title policyCan shop. No limit. | |
| D. Total loan costs (A + B + C) | $5,672 |
| F. Prepaids | $867 |
| Homeowners insurance premiumComputed from the figures above. No limit. | $605 |
| Prepaid interest$17 a day for 15 days. No limit. | $262 |
| Property taxes dueNo limit. | $0 |
| G. Initial escrow payment at closing | $413 |
| Homeowners insurance2 months. No limit. | $202 |
| Property taxes2 months. No limit. | $211 |
| I. Total other costs (E + F + G + H) | $2,382 |
| J. Total closing costs (D + I) | $8,054 |
How the numbers are calculated
The calculator adds up what you type and computes only the lines a lender computes.
Every fee starts at $0 and you fill in the figures from your own Loan Estimate. The calculator computes four things itself: discount points (the percentage you enter, times the loan), prepaid interest, the homeowners insurance premium paid up front, and the initial escrow deposit. It adds them to your fees using the same letters the Loan Estimate uses. Loan costs (D) are sections A, B and C. Other costs (I) are E, F, G and H. Total closing costs (J) are D plus I.
Prepaid interest is the loan amount times the rate, divided by the days in the year, times the days from your closing day to the end of the month, counting both days. Some lenders divide by 360, so the day count is a setting. Escrow is one-twelfth of the annual tax or premium, times the months you enter. The result is rounded to dollars, as the Loan Estimate is.
No rate is supplied and nothing is looked up. The methodology page describes how every calculator on this site works. For the monthly payment on the same loan, use the mortgage calculator.
| Line | Amount |
|---|---|
| Loan costs (D) | $5,672 |
| Taxes and government fees (E) | $85 |
| Prepaids (F) | $867 |
| Initial escrow (G) | $413 |
| Other (H) | $1,017 |
| Total closing costs (J) | $8,054 |
| Cash to close | $16,054 |
From the CFPB's sample Loan Estimate, form H-24(B), a fictional purchase with a 360-day year for prepaid interest. Use the button above the calculator to load it.
Source: CFPB Appendix H, form H-24(B).
What counts as closing costs, line by line
The Loan Estimate groups every charge under a letter.
- A. Origination charges. What the lender charges for making the loan: application, underwriting and processing fees, plus any discount points.
- B. Services you cannot shop for. Work the lender orders and picks, such as the appraisal, credit report and flood determination.
- C. Services you can shop for. Mainly title work, a survey and a pest inspection.
- D. A plus B plus C.
- E. Taxes and other government fees. Recording fees and transfer taxes.
- F. Prepaids. Homeowners insurance premium, prepaid interest and any property tax due.
- G. Initial escrow payment. The deposit that starts your tax and insurance account.
- H. Other. Items such as an owner’s title policy.
- I and J. I adds E through H. J, total closing costs, adds D and I.
The closing costs glossary entry gives the short definition.
Closing costs vs prepaids vs cash to close
Fees, prepaids and cash to close are three different amounts.
Fees pay for services. Prepaids and escrow (F and G) are your own future bills paid early: the interest from closing to month end, an insurance premium and tax deposits. The Loan Estimate counts both in total closing costs, so asking whether escrow is part of closing costs gets a yes from the form. That is why this calculator shows them apart. A lender that quotes low fees can still leave you with a high cash to close, and the reverse.
Cash to close is the amount you wire. On a purchase it adds the down payment and takes off the deposit, the seller credit and any lender credit. On a refinance it is the total less any lender credit, or zero if you roll the costs into the loan.
Seller credits and their limits
A seller can pay part of your costs, but only up to a limit set by your loan.
For a conventional loan on a primary home, Fannie Mae’s Selling Guide caps contributions from interested parties at 3% of the value when the loan is more than 90% of it, 6% from over 75% up to 90%, and 9% at 75% or less. Investment properties have a different, lower limit that this calculator does not model. For a VA loan, the VA buyer’s guide says concessions can be up to 4% of the loan amount, and VA’s lender handbook decides what counts as a concession.
Pick your loan type in the calculator and it compares your seller credit with the limit and shows any excess. It does not check FHA or USDA loans, because their limits are not encoded here. Ask your lender for those.
Closing costs when you refinance
You can pay in cash, roll the costs into the loan, or take a lender credit with a higher rate.
Switch the calculator to Refinancing and the down payment, owner’s title and seller credit disappear. It also reports a cost to refinance: loan costs plus taxes and government fees, leaving out prepaids and escrow. Prepaid interest and escrow deposits are money you would pay anyway, and an old escrow account is usually refunded, so most people leave them out when they judge whether a refinance is worth it. The full total is still shown for the cash you need.
Rolling the costs in means you bring nothing and the new balance goes up by the amount shown. You then pay interest on that amount for as long as you keep the loan. A lender credit lowers the cash due, and the lender usually pays for it with a higher rate. To learn how many months the savings take to cover the cost, take the cost to refinance to the refinance calculator, which handles break-even. The no-closing-cost refinance guide explains the trade.
What can change between the Loan Estimate and the Closing Disclosure
Regulation Z puts each charge in one of three buckets.
The rules sit in 12 CFR 1026.19(e)(3). The calculator tags every line with its bucket.
| Bucket | What falls in it |
|---|---|
| Cannot rise | Fees the lender charges, services you cannot shop for, transfer taxes, and any provider affiliated with the lender |
| Up to 10% in total | Recording fees, and shoppable services you took from the lender's list |
| No limit | Prepaids, escrow, and a provider you chose yourself |
Some charges can rise further for reasons the regulation lists, such as a change in your circumstances. Ask the lender to explain any increase.
The 10% bucket is a total across its lines, so one fee can rise a lot if the others stay put. Because prepaids and escrow have no limit, they are where most surprises in cash to close show up. A different closing date changes prepaid interest, and a new insurance quote changes the premium.
Which fees you can shop for
The lender tells you on the Loan Estimate, and the tag in the table matches it.
Section C is yours to shop. If you choose a provider from the lender’s written list, that fee sits in the 10% bucket, unless the provider is the lender or an affiliate of it, in which case the fee cannot rise at all. If you find your own provider, the fee has no limit. Section B you cannot shop, and section A is the lender’s own pricing. The way to compare section A is to request a Loan Estimate from more than one lender for the same loan and type each into the calculator.
Escrow has its own rule. Under Regulation X, the cushion a servicer holds cannot exceed one-sixth of the estimated annual payments, which is two months. The calculator warns when your months imply more.
Transfer taxes and state differences
They vary by state and county, so the calculator has an empty line for yours.
Transfer taxes, recording fees, title practices and who customarily pays what differ from place to place. This calculator gives no state figures. Enter the amount from your Loan Estimate, or ask your title company or county recorder for it before you have one.
Closing cost questions
- Are prepaids and escrow part of closing costs?
- On a Loan Estimate, yes. Prepaids (section F) and the initial escrow deposit (section G) sit inside total closing costs (J). They are different from fees, though. A fee is a charge for a service. Prepaids and escrow are money you would owe anyway, paid earlier: interest, an insurance premium and tax deposits. This calculator shows them as their own headline number so you can see what the lender and its vendors charge apart from the timing items.
- What is cash to close?
- It is the single amount you bring to the table. On a purchase it is your down payment plus total closing costs, minus any seller credit, lender credit and earnest money you already paid. On a refinance it is the total closing costs minus any lender credit, unless you add them to the new loan, in which case you bring nothing and the balance goes up. Cash to close is usually larger than closing costs on a purchase, because the down payment is in it.
- How much can the seller pay toward my closing costs?
- It depends on the loan. For a conventional loan on a primary home, Fannie Mae's Selling Guide allows 3% of the price when the loan is more than 90% of the value, 6% from over 75% up to 90%, and 9% at 75% or less. VA says concessions can be up to 4% of the loan amount. Other loan types have their own rules, and this calculator does not check them, so ask your lender for the limit that applies to yours.
- Which closing costs can be added to the loan balance?
- On a refinance, a lender may let you finance some or all of the costs, and the Loan Estimate has a line for closing costs financed from the loan amount. Financing does not make the costs go away. The balance is larger, so you pay interest on them for as long as you keep the loan. On a purchase, financing closing costs is limited by the loan program and the lender's rules, so ask what yours allow.
- Where does the money go in a no-closing-cost refinance?
- The costs still exist. A lender either raises your rate, which lets it give you a credit that covers the fees, or adds the fees to the balance. You trade cash today for a higher monthly payment or a larger loan. Whether that is worth it depends on how long you keep the loan. Enter the lender credit in this calculator to see the cash due fall, then compare the two rates in the refinance calculator.
- How is prepaid interest calculated?
- The lender takes the loan amount times the rate, divides by the days in the year to get a daily figure, and multiplies by the days from your closing date to the end of that month. Closing on the 28th means a few days of interest. Closing on the 2nd means almost a month. Some lenders divide by 360 rather than 365, which makes each day cost slightly more. The daily figure is on your Loan Estimate, so you can check it.
- How many months of escrow will the lender collect?
- It varies. The deposit has to cover the time until your first tax and insurance bills come due, plus a cushion. Under Regulation X the cushion cannot be more than one-sixth of the year's estimated payments, which is two months. Enter the months on your Loan Estimate into the calculator and it will flag a deposit that implies more than a two-month cushion. If you see one, ask the lender how it counted.
- Can closing costs change after the Loan Estimate?
- Some can and some cannot. Under Regulation Z, fees the lender charges and services you cannot shop for generally cannot rise. Recording fees and shoppable services you took from the lender's list can rise by 10% in total, unless the provider is affiliated with the lender, which puts it back in the no-increase group. Prepaids, escrow and any provider you chose yourself have no limit. The table in this calculator tags each line with its bucket, so you can see which differences you can challenge.
- Which closing costs can I shop for?
- The Loan Estimate sorts services into two groups. Section B lists services the lender requires and picks, such as the appraisal and credit report. Section C lists services you can shop for, which usually include title services, a survey and a pest inspection. Lender fees in section A are not shoppable, but you can compare them across lenders by getting more than one Loan Estimate for the same loan.
- Do you pay closing costs on an all-cash purchase?
- Usually yes, though the list is shorter. With no lender there are no origination fees, appraisal, points, prepaid interest or loan escrow. Title search and insurance, settlement fees, recording fees, transfer taxes and prorated property taxes can still apply. To estimate an all-cash purchase here, set the down payment equal to the price, set the escrow months to zero and fill in only the title and government lines.
- Why are my closing costs higher than the online estimate?
- Most online estimates are a percentage of the price, which cannot see your state's transfer tax, your lender's fees, your insurance premium or your closing date. Prepaids and escrow are also easy to leave out, and together they can be a large share of the total. Type the lines from your Loan Estimate into this calculator and the total will match theirs, so you can see which line is carrying the difference.