Closing Cost Calculator

This closing cost calculator adds up what you are likely to pay at closing, apart from your down payment. It splits the total into two groups: fees for the loan and the sale, and prepaids that fund your first interest, insurance and escrow. Freddie Mac says closing costs usually run 2% to 5% of the loan amount, and this tool shows where your own number may land.

How to use this calculator

Start with the home price and the loan amount, then work down the fee lines. Every line is editable, so you can swap a default for a real quote.

• Price and loan amount. Title and transfer tax are figured on the price. The origination charge and prepaid interest are figured on the loan.
• Interest rate. Use an example rate. It only affects prepaid interest.
• Fee lines. Defaults are placeholders, not national averages. Once you have a Loan Estimate, copy its numbers in.
• Days of prepaid interest. Count the days from your closing date to the end of that month.
• Escrow months. Ask your lender how many months it collects to start the account.

How it is calculated

The total is fees plus prepaids. Each line uses a simple percent or a flat dollar amount, so you can follow every step.

1. Origination = loan amount × origination %
2. Title and settlement = price × title %
3. Transfer tax = price × transfer tax %
4. Loan and third-party fees = origination + appraisal + title + transfer tax + recording + other fees
5. Prepaid interest = loan amount × rate ÷ 365 × days
6. Insurance prepaid = one full year of homeowners insurance
7. Escrow deposit = (price × tax rate ÷ 12 + insurance ÷ 12) × escrow months
8. Prepaids = prepaid interest + insurance prepaid + escrow deposit
9. Total = loan and third-party fees + prepaids

What it leaves out: your down payment, discount points, mortgage insurance premiums, HOA transfer fees, and any seller or lender credits. Add costs that apply to you to the Other fees line.

Worked example

The table shows how single changes move that same example.

What your result means

Your result is a rough budget, not a quote. If it falls between 2% and 5% of the loan, it matches Freddie Mac’s general range. If it is far outside that range, check the transfer tax and title lines first. Those two vary the most by location.

Several rules can change your real number:

• Local law and custom. Transfer taxes and who pays them are set by states and localities. Title and settlement practices also differ. In some areas an attorney handles closing.
• Your loan program. FHA loans have an upfront mortgage insurance premium and VA loans have a funding fee. Both can usually be financed, but if you pay them in cash, add them here.
• Points and credits. Paying points raises closing costs, while lender credits lower them in exchange for a higher rate. The CFPB Loan Estimate explainer shows where each appears.
• The Closing Disclosure. You must receive it at least three business days before closing. The CFPB suggests comparing it with your Loan Estimate line by line.

Common mistakes

• Comparing lenders on the interest rate alone instead of the total of origination charges and points.
• Forgetting prepaids. They can be thousands of dollars even when lender fees are low.
• Assuming closing late in the month makes the loan cheaper. It lowers the prepaid interest due at closing, not the interest rate or the loan’s cost over time.
• Entering the full transfer tax when the seller pays part or all of it under your contract.
• Leaving out your homeowners insurance premium, which is often paid for the first year before or at closing.

Related guides and tools

For a deeper look at each fee, read how much closing costs are and what happens at closing. If you are weighing points, see should you buy mortgage points.

Then estimate your monthly payment with the mortgage payment calculator, test points with the mortgage points calculator, and map your key dates with the closing date planner.