How This Calculator Works
Closing costs are built up from individual line items that vary by lender, state, and loan type. Lender fees include the origination charge (typically 0.5–1% of the loan amount) and any discount points you pay to buy down the interest rate (each point costs 1% of the loan and reduces the rate by roughly 0.25%). Title and settlement charges cover title insurance (which protects the lender and sometimes the buyer), appraisal ($500–700), survey ($400–700), credit report ($50–100), and recording fees ($100–200).
Prepaid expenses include the property tax proration (reimbursing the seller for taxes paid in advance), one year of homeowners insurance paid upfront, and per-diem mortgage interest from closing day through the end of the month. Government fees vary dramatically by state — transfer taxes range from 0% in Alaska, Texas, and Indiana to over 1.5% in Washington, New Hampshire, and Delaware.
Loan Amount = Home Price × (1 − Down Payment %)
Lender Fees = Loan × (Origination % + Points %)
Government Fees = Home Price × State Transfer Tax %
Prepaid Items = Property Tax Proration
+ Annual Homeowners Insurance
+ Daily Mortgage Interest (15 days)
FHA Upfront MIP = Loan × 1.75%
VA Funding Fee = Loan × 2.3% (first use) or 3.3%
Total Closing Costs = Lender + Title + Prepaids + Govt + Loan-Type Fee
Cash to Close = Down Payment + Total Closing Costs
FHA upfront mortgage insurance premium (MIP) is 1.75% of the loan amount for all borrowers and is typically financed into the loan rather than paid in cash. VA funding fees vary by down payment and prior use: 2.3% with no down payment for first-time users, dropping to 1.65% with 5% down and 1.5% with 10% down; subsequent uses carry higher fees of 3.3% with no down payment. Conventional loans avoid upfront fees but require monthly PMI of 0.3–1.5% of the loan until you reach 20% equity.
When to Use This Calculator
Use the closing cost calculator whenever you are planning a home purchase and need an accurate estimate of cash required at closing:
- Setting a savings target before beginning your home search
- Comparing loan offers from different lenders side by side
- Deciding between conventional, FHA, and VA loan programs
- Determining whether to pay discount points to lower your interest rate
- Estimating cash to close after your offer is accepted
- Comparing closing costs across different states when relocating
- Negotiating seller concessions to offset buyer closing costs
- Deciding between a no-closing-cost lender credit and paying costs upfront
Lenders must provide a Loan Estimate within three business days of receiving your application, with itemized closing costs in Section J of the form. Use that document for the most accurate figures once you are under contract — this calculator gives you a planning estimate to use during the shopping phase before you apply.
Example Calculation
Consider a $350,000 home purchase with 10% down ($35,000) using a conventional loan of $315,000. The lender charges 1% origination ($3,150) and the buyer pays 1 discount point ($3,150) to reduce the rate. Title insurance is $1,800, appraisal is $550, survey is $450, credit report is $75, and recording fees total $180. Property tax proration is $1,200, prepaid homeowners insurance is $1,400, and the state transfer tax (Washington) is 1.28% of the home price ($4,480).
Lender fees: $3,150 + $3,150 = $6,300.
Title and settlement: $1,800 + $550 + $450 + $75 + $180 = $3,055.
Prepaid items: $1,200 + $1,400 + roughly $840 in per-diem interest = $3,440.
Government fees: $4,480.
Total closing costs: $6,300 + $3,055 + $3,440 + $4,480 = $17,275, or about 4.9% of the purchase price.
Cash to close: $35,000 down payment + $17,275 closing costs = $52,275. If the buyer chose an FHA loan instead, they would pay an additional $5,513 upfront MIP (1.75% of $315,000), bringing closing costs to roughly $22,788. Conversely, switching to a VA loan would replace the upfront MIP with a $7,245 funding fee (2.3% of $315,000) — but eliminate the monthly PMI that conventional loans require with 10% down.