Calculator
Closing Cost Calculator
This calculator estimates what a buyer will owe at the closing table beyond the down payment - origination fees, title and escrow charges, prepaid interest, insurance escrow setup, and government recording fees. The baseline is 3 percent of the purchase price, the midpoint of the 2 to 5 percent range Freddie Mac cites as typical for US buyers. Loan type and your state's cost tier then move the estimate up or down from there.
No sign-up, no email gate, and the calculation runs entirely in your browser. The number here is a planning estimate - your lender is required by federal law to deliver a Loan Estimate within 3 business days of application, and that document is what you use to compare lenders line by line.
How this calculator works
The estimate starts at 3 percent of the purchase price - the midpoint of the 2 to 5 percent buyer closing cost range Freddie Mac reports as typical for US purchase transactions. That baseline is then adjusted by two multipliers:
- Loan type. A conventional loan anchors the estimate at 1.0. FHA loans add an upfront mortgage insurance premium of 1.75 percent of the loan amount, which pushes total closing costs roughly 15 percent above a comparable conventional loan - hence the 1.15 factor. VA loans eliminate mortgage insurance but include a funding fee that varies by down payment and first-use status (1.25 to 3.3 percent of the loan); the net effect for a typical first-use borrower is slightly below conventional, reflected at 0.9. Cash purchases skip lender origination fees, discount points, and mortgage-related third-party charges entirely, leaving mainly title, escrow, and recording fees at roughly 55 percent of a conventional loan's total. Our loan type guide breaks out what each program requires in full.
- State cost tier. Transfer taxes, title insurance premiums, and required attorney involvement vary sharply by state. DC, New York, Delaware, Maryland, and Washington impose transfer taxes or recordation fees that push buyer closing costs 50 to 60 percent above a baseline state - the 1.6 factor here. Missouri, Indiana, North Dakota, and similar states have no or minimal transfer taxes and land well below the national midpoint - the 0.65 factor. Our closing costs by state guide lists each state's typical range and the fee categories driving the spread.
The CFPB requires lenders to provide a Loan Estimate within 3 business days of receiving a complete application. That document uses standardized categories - Section A (Origination), Section B (Services you cannot shop for), Section C (Services you can shop for), and Prepaids - that map directly to the components in this estimate. When you receive your Closing Disclosure 3 business days before closing, compare it line by line against the Loan Estimate; significant increases in most fee categories require lender justification under federal rules.
What this calculator does not include
The estimate covers buyer-side closing costs only. It does not include your down payment, which is a separate line on the Closing Disclosure and does not appear in the closing cost total. It also does not include seller concessions (which can offset some costs), homeowners association transfer fees, or any inspection or appraisal fees paid before closing. For a first-time buyer working through the full cost picture, start with our first-time buyer guide.
Frequently asked questions
How much are closing costs on a $400,000 home?
At the 2 to 5 percent range Freddie Mac cites as typical for US buyers, a $400,000 purchase carries roughly $8,000 to $20,000 in closing costs, with $12,000 - 3 percent - as a common midpoint for a conventional loan in a typical state.
Who pays closing costs - the buyer or the seller?
Both parties typically pay closing costs, but they pay different ones. Buyers pay lender fees, title and escrow charges, prepaid interest, and escrow setup. Sellers pay commissions and their own title and transfer fees. In some transactions, the seller agrees to cover a portion of the buyer's costs as a concession.
Are closing costs included in the mortgage loan?
Not automatically. Most buyers pay closing costs in cash at the table, separate from the down payment. Some loan programs allow rolling costs into the loan balance - which reduces out-of-pocket cash but increases the loan amount and total interest paid over time. Ask your lender about both options.
What document shows me the exact closing costs before I sign?
The CFPB's Loan Estimate, which your lender must deliver within 3 business days of a complete application, breaks out every fee by category. Three days before closing you receive the Closing Disclosure - compare it line by line against the Loan Estimate; most increases in Section A and B fees require lender justification.
Do closing costs differ by state?
Yes, considerably. Transfer taxes are the biggest variable - DC, New York, Delaware, Maryland, and Washington impose fees that can add $6,000 to $10,000 on a $400,000 purchase compared to a state with no transfer tax. Our closing costs by state guide has a full breakdown by state.