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Example data
| Scenario | Purchase Price | Loan Amount | Closing Costs | Cash to Close |
|---|---|---|---|---|
| Starter home | $250,000 | $200,000 | $8,200 | $58,200 |
| Move‑up purchase | $450,000 | $360,000 | $12,900 | $102,900 |
| Low‑down option | $320,000 | $304,000 | $11,100 | $27,100 |
Formula used
- Down payment = Purchase price − Loan amount (or entered value).
- Origination fee = Loan amount × Origination %.
- Discount points = Loan amount × Points %.
- Transfer tax = Purchase price × Transfer tax rate; allocation depends on payer.
- Mortgage tax = Loan amount × Mortgage tax rate.
- Prepaid interest = Loan amount × (Rate ÷ 365) × Prepaid days.
- Monthly taxes = Annual property taxes ÷ 12; prepaids and reserves use selected months.
- Monthly insurance = Annual insurance ÷ 12; prepaids and reserves use selected months.
- Cash to close = Down payment + Closing costs − Earnest money − Seller credit.
How to use this calculator
- Enter the purchase price, then choose loan amount or down payment.
- Adjust lender fees, title costs, taxes, and third‑party services.
- Set prepaids and escrow months to match local requirements.
- Add earnest money and any seller credit to estimate cash to close.
- Click calculate to see totals and line items under the header.
Cost categories and typical ranges
Closing costs usually run 2% to 5% of the purchase price, but the mix matters more than the headline number. Lender fees, title services, government charges, and prepaid items behave differently. This calculator separates each bucket so you can see which items scale with the loan, which scale with the price, and which are flat fees. Flat administrative fees often total $800–$2,000.
Lender charges that scale with the loan
Origination and discount points are commonly expressed as a percentage of the loan amount, often 0% to 2% each. A 1.0% origination on a $300,000 loan is $3,000, while a 0.5% point is $1,500. Fixed lender items, such as underwriting or processing, do not scale, so their impact is larger on smaller loans. Points can reduce the rate; break‑even depends on loan tenure.
Title, settlement, and recording details
Settlement, title search, recording, and notary costs are frequently fixed or locally scheduled. Title insurance may be priced as a rate: lender coverage typically follows the loan balance, while owner coverage can follow the purchase price. By entering both rates, you can test how coverage choices influence totals, especially in higher‑price transactions. Some locations also add endorsements, closing protection letters, or wire fees, which you can include under other costs.
Taxes, prepaids, and escrow math
Transfer tax is usually tied to the purchase price, and some areas allocate it to the buyer, seller, or both. Prepaid interest is driven by the daily interest rate and the number of days from closing to the next billing cycle. Escrow reserves often include a few months of taxes and insurance, which can add meaningful upfront cash needs. If taxes are prorated at closing, treat proration as a credit or debit in other costs.
Budgeting, comparisons, and cash‑to‑close
Cash to close combines the down payment, all buyer closing costs, and then subtracts credits such as earnest money and negotiated seller credits. Use the download buttons to keep a record of scenarios, compare lenders, or validate a loan estimate. Re‑run the inputs when rates, tax schedules, or insurance quotes change. For planning, keep a buffer during closing for last‑minute adjustments and lender‑required reserves.
FAQs
What does this calculator include in closing costs?
Buyer closing costs include lender fees, third‑party services, title and settlement charges, government taxes, prepaids, escrow reserves, and any other buyer costs you enter. Down payment is shown separately, then combined to estimate cash to close.
Why is cash to close different from total closing costs?
Cash to close equals down payment plus buyer closing costs, minus credits such as earnest money and seller credit. It can also change with prorations, lender reserve requirements, and timing of the first payment.
How should I choose prepaid interest days?
Use the number of days from your closing date to the start of the next payment cycle. Closings late in the month often create more prepaid days. Your lender’s loan estimate will show the expected count.
How does transfer tax splitting work here?
Select buyer, seller, or split. If split, set the seller share percentage and the calculator assigns the remainder to the buyer. This only changes who pays the tax, not the tax amount.
Do I need both owner and lender title insurance?
Lenders typically require lender coverage. Owner coverage is optional in some areas but common for protection against title defects. Rates vary by region and policy type, so test scenarios using local quotes.
How accurate are the results?
It’s an estimate based on your inputs. Some fees are negotiable, some are scheduled locally, and tax rules differ by jurisdiction. Use this for budgeting, then confirm exact figures with your lender, attorney, or closing agent.