Enter Settlement Inputs
The calculator estimates buyer cash to close, prorations, financing charges, transfer taxes, and seller proceeds from one complete settlement worksheet.
Example Data Table
| Item | Example Value |
|---|---|
| Purchase Price | $450,000.00 |
| Down Payment | $90,000.00 |
| Loan Amount | $360,000.00 |
| Transfer Tax Rate | 1.20% |
| Origination Points | 0.75% |
| Annual Property Tax | $5,400.00 |
Formula Used
1) Loan Amount
Loan Amount = Purchase Price − Down Payment
2) Transfer Tax
Transfer Tax = Purchase Price × (Transfer Tax Rate ÷ 100)
3) Loan Origination Fee
Origination Fee = Loan Amount × (Origination Points ÷ 100)
4) Daily Interest
Daily Interest = Loan Amount × Annual Interest Rate ÷ 100 ÷ 365
5) Prepaid Interest
Prepaid Interest = Daily Interest × Prepaid Interest Days
6) Daily Proration
Daily Charge = Annual Charge ÷ 365
7) Buyer Cash to Close
Cash to Close = (Purchase Price − Loan Amount) + Buyer Closing Costs + Prorations − Credits
8) Seller Net Proceeds
Seller Net Proceeds = Purchase Price − Seller Costs − Seller Proration Credits
This model gives a practical settlement estimate. Actual closing statements can vary by lender rules, county charges, negotiated credits, and local customs.
How to Use This Calculator
- Enter the agreed purchase price and down payment.
- Add the loan amount, or leave it at zero to auto-calculate.
- Enter deposits and negotiated credits from seller or lender.
- Fill in closing costs such as title, escrow, attorney, recording, and inspection fees.
- Enter transfer tax rate, interest rate, origination points, and prepaid interest days.
- Provide annual tax, insurance, and HOA values with proration days.
- Click Calculate Settlement to show the results above the form.
- Use the CSV and PDF buttons to export the settlement summary.
Frequently Asked Questions
1. What does a settlement calculator estimate?
It estimates closing-related amounts for a property transfer. That includes buyer cash to close, seller proceeds, loan charges, prorations, transfer taxes, and common settlement fees.
2. Why can cash to close differ from my lender estimate?
Lenders may apply specific escrow reserves, rounding rules, prepaid items, and local fee conventions. County taxes and negotiated credits can also change the final settlement statement.
3. What are prorations in real estate settlement?
Prorations split recurring expenses between buyer and seller. Property tax, insurance, and HOA dues are commonly adjusted according to the number of days each party owns the home.
4. Should earnest money reduce cash to close?
Yes. Earnest money is usually credited to the buyer at closing, so it reduces the remaining funds needed, assuming the contract applies it to the purchase.
5. What are origination points?
Origination points are financing charges based on a percentage of the loan amount. They increase upfront closing costs and are commonly disclosed by the lender.
6. Does the calculator include escrow reserves?
This version focuses on settlement figures, fees, credits, and prorations. You can extend it later by adding lender-required escrow reserves for taxes and insurance.
7. Can sellers use this tool too?
Yes. It estimates seller costs and net proceeds, helping sellers understand how credits, transfer taxes, shared fees, and prorations affect the amount they receive.
8. Is this calculator suitable for every location?
It is a strong general estimator, but local rules vary. Always compare the results with your closing disclosure, settlement agent, attorney, or title company figures.