Calculator
Example Data Table
These sample values can help you test the calculator.
| Field | Example | Why it matters |
|---|---|---|
| Home Price | $350,000 | Base amount for taxes and down payment. |
| Down Payment | 20% | Determines the loan amount. |
| Discount Points | 1.00% | Upfront cost to reduce the rate. |
| Origination | 1.00% | Lender fee to produce the loan. |
| Prepaid Interest Days | 15 | Bridges closing date to billing cycle. |
| Transfer Tax Rate | 0.50% | Local tax applied to the sale. |
| Annual Property Tax | $4,800 | Used to estimate escrow deposit. |
| Insurance Escrow Months | 2 | Initial reserve for policy payments. |
| Settlement Fee | $600 | Closing services and coordination. |
| Seller Credits | $0 | Can reduce cash due at closing. |
Formula Used
Core calculations
- Down payment = price × (down% ÷ 100) or fixed amount.
- Loan amount = price − down payment.
- Discount points = loan amount × (points% ÷ 100).
- Origination fee = loan amount × (orig% ÷ 100) or fixed amount.
- Transfer tax = price × (transfer% ÷ 100).
- Mortgage tax = loan amount × (mortgage tax% ÷ 100).
Prepaids and escrow
- Daily interest = loan × (rate% ÷ 100) ÷ 365.
- Prepaid interest = daily interest × prepaid days.
- Tax escrow = (annual tax ÷ 12) × tax months.
- Insurance escrow = (annual insurance ÷ 12) × insurance months.
- HOA prepaids = monthly HOA × HOA months.
- Upfront MI = loan × (MI% ÷ 100).
Totals
- Total closing costs = sum of all fee line items.
- Credits total = seller credits + lender credits.
- Cash to close = down payment + total closing costs − credits total.
How to Use This Calculator
- Enter the home price and choose a down payment method.
- Fill lender fees, third‑party fees, and local taxes.
- Add prepaids for interest, escrows, and HOA reserves.
- Include any seller or lender credits you expect.
- Press Calculate Fees to see totals and breakdowns.
- Use Download CSV or Download PDF for sharing.
Closing cost ranges and what drives them
For many buyers, total closing costs commonly land around 2% to 5% of the purchase price, excluding the down payment. The range depends on loan size, local taxes, and required services. In this calculator, “Total Closing Costs” groups lender fees, third‑party charges, government items, and prepaids so you can see which bucket is moving the total most. Tracking each line item also helps validate lender estimates, compare competing loan offers, and confirm that negotiated credits are applied correctly at closing.
Lender fees and point decisions
Lender fees often include origination, underwriting, processing, and optional discount points. Points are calculated as a percentage of the loan amount, so they scale quickly on larger loans. Paying points may lower your interest rate, but it increases cash due at closing. Use the inputs to test scenarios such as 0.00%, 1.00%, and 2.00% points and compare the resulting cash‑to‑close figure.
Third‑party services and title work
Third‑party costs can include appraisal, credit report, inspections, survey, settlement services, and title insurance. Appraisal and title items are frequently required, while inspections vary by contract and region. Title insurance is usually split into lender and owner policies; the lender policy protects the loan, and the owner policy protects equity. Recording realistic quotes here prevents surprises late in underwriting.
Government charges and locality differences
Government charges may include recording fees plus transfer or stamp taxes. The calculator uses a simple percentage for transfer tax based on the home price and, if applicable, a mortgage tax based on the loan amount. If your jurisdiction uses flat fees or tiered brackets, enter the effective rate or replace it with a direct “Other Fees” estimate to mirror your disclosure more closely.
Prepaids, escrows, and cash‑to‑close planning
Prepaids are not “fees” in the usual sense; they are upfront funding for time periods you will cover anyway. Prepaid interest is estimated from daily interest: loan × rate ÷ 365 × days. Escrow deposits for property tax and insurance are estimated as monthly fractions of annual bills, multiplied by the number of reserve months. Add seller and lender credits to reduce cash to close and evaluate negotiation targets.
What does cash to close include?
Cash to close includes your down payment plus closing costs, minus any seller or lender credits. It can also include required escrow deposits and prepaid interest shown in the prepaids section.
How are discount points calculated?
Discount points are calculated as a percentage of the loan amount. For example, 1.00% points on a 280,000 loan equals 2,800 paid at closing.
Why does prepaid interest change?
Prepaid interest depends on the number of days between closing and the first billing cycle. More days means more daily interest collected upfront, even if your long‑term rate stays the same.
How should I estimate transfer or stamp taxes?
Use your local published rate if it is a percentage. If the charge is tiered or flat, convert it to an effective percentage or enter the expected amount under Other Fees.
What are seller and lender credits?
Credits are amounts applied to reduce what you pay at closing. Seller credits are negotiated in the contract. Lender credits are typically offered in exchange for a higher interest rate or fewer points.
Can I use this for refinancing estimates?
Yes. Enter your new loan amount and applicable fees. Set purchase‑specific items like transfer tax to zero if they do not apply, and focus on lender, third‑party, and prepaids.