Closing Cost Calculator
Example: Home price: 400000 $ · Loan-to-value: 80 % · Lender fees (% of loan): 1 % · Title & escrow fees: 2500 $ · Prepaid taxes & insurance: 3500 $ · Other fees (appraisal, recording, etc.): 1500 $
| Total closing costs | $10,700 |
| Total cash needed | $90,700 |
| Closing costs as % of price | 2.67% |
Worked example
On a $400,000 home financed at 80% loan-to-value, the loan is $320,000. Lender fees at 1% of the loan add $3,200; title and escrow run $2,500; prepaid taxes and insurance $3,500; and other fees $1,500 — about $10,700 in closing costs, or roughly 2.7% of the price. Add the 20% down payment of $80,000 and you need about $90,700 in cash at the table.
Frequently asked questions
How much are closing costs, typically?
For buyers, closing costs commonly total 2 to 5% of the purchase price, though the mix varies by state, lender, and loan type. The lender is required to give you a Loan Estimate early and a Closing Disclosure before signing so you can verify the figures.
Can I negotiate or reduce closing costs?
Some fees are negotiable or shoppable — title insurance, settlement services, and certain lender fees. You can also ask the seller for a credit, or accept a slightly higher rate in exchange for lender credits that offset costs. Compare Loan Estimates from multiple lenders.
What are prepaids?
Prepaids are amounts collected at closing to fund your escrow account and cover the first stretch of property taxes and homeowners insurance. They are not really fees — they are your own future expenses paid a little early — but they are cash you need on closing day.
Do closing costs count toward my down payment?
No. They are separate. Your down payment reduces the loan; closing costs pay for the transaction. Budget for both, which is why this calculator adds them together into the total cash you must bring.