Closing Cost Calculator
Build a detailed estimate of your closing costs with this interactive calculator. Enter your home purchase price and loan amount, then edit itemized fees to match your loan estimate: origination fees, appraisal, title insurance, attorney fees, recording charges, prepaid interest, property tax and insurance escrow, and more. Every field is editable so you can use actual quotes from your lender or rough industry estimates. The calculator automatically suggests typical amounts based on the loan size but shows all fees clearly so you understand what you are paying for. Perfect for first-time buyers understanding the full cost of purchasing a home, comparing quotes from different lenders, or preparing for your closing disclosure. See your total closing costs broken down by category: loan fees, third-party services, and prepaids.
For a $400,000 home, typical closing costs are roughly $8,000 to $20,000 (2 to 5 percent of the home's purchase price), per CFPB estimates. Use the itemized calculator below to build your personalised estimate.
Home details
Itemized fees (editable)
All values are editable. Defaults are estimates; actual fees will vary by lender and location.
| Fee | Amount (USD) |
|---|---|
| Loan fees | |
| (default: 0.5% of loan) Figure basis: Default value, editable | |
| Third-party fees | |
| (default: 0.5% of loan) Figure basis: Default value, editable | |
| (default: 0.3% of loan) Figure basis: Default value, editable | |
| Prepaids and escrow | |
| (default: loan x rate / 365 x 15) Figure basis: Default value, editable | |
| (estimate; enter your actual amount) | |
| (default: $150 x 2) Figure basis: Default value, editable | |
Estimated closing costs
Transfer taxes for the selected state are not included. Check your state or county assessor for the applicable rate.
How to read the badges beside each field: Official figures come from a cited authority; Regional average and Illustrative assumption values are editable placeholders, so replace them with your own figure before you rely on the result.
How closing costs work
Closing costs are the fees and prepaid expenses you pay when a home purchase settles. They are separate from the down payment. The CFPB groups them into three categories: lender charges (origination and underwriting fees), third-party service fees (appraisal, title insurance, attorney), and prepaids or escrow deposits (prepaid interest, property tax and homeowners insurance reserves).
Lenders must provide a Loan Estimate within three business days of your mortgage application and a Closing Disclosure at least three business days before closing. Both documents use the same line-item format so you can compare them and verify no fees have changed unexpectedly.
total closing costs = loan fees + third-party fees + prepaids and escrow
prepaid interest = loan x (annual rate / 100 / 365) x days to first payment
Transfer taxes vary by state and are not included in the default estimate above. Rates range from zero in states like Texas and Wyoming to over 1 percent in some jurisdictions. For state reference see our US sales tax calculator.
Worked example
For a $400,000 purchase price, $320,000 loan amount and 6.5% interest rate, using default fee values:
- Loan origination fee: $320,000 x 0.5% = $1,600
- Appraisal: $500; Inspection: $400
- Title (lender): $320,000 x 0.5% = $1,600; Title (owner): $320,000 x 0.3% = $960
- Attorney: $500; Recording: $125
- Prepaid interest: $320,000 x (6.5 / 100 / 365) x 15 = $857.53
- Property tax escrow: ($400,000 x 1.1% / 12) x 2 = $733 (estimate only)
- Insurance escrow: $150 x 2 = $300
- Total: $1,600 + $500 + $400 + $1,600 + $960 + $500 + $125 + $858 + $733 + $300 = $7,576 (1.89% of purchase price)
The cost that never shows up in the default estimate
The single biggest reason two closing-cost estimates for the same house disagree is the one line this calculator deliberately leaves out: the state or county transfer tax. It is not a lender fee and it is not a percentage of the loan, so it never lands in the itemized defaults above, yet in some jurisdictions it dwarfs every other charge. A buyer in Texas or Wyoming pays nothing, while a buyer in Delaware or parts of Pennsylvania can face a combined transfer and recordation charge above 2 percent of the purchase price. On a $400,000 home, that single omission can be worth roughly $8,000.
A second common mistake is confusing closing costs with the down payment. They are separate cash requirements: the down payment builds your equity, while closing costs pay for services and prepaids and buy you nothing you keep. The CFPB frames typical closing costs as 2 to 5 percent, but the base matters. A percentage of the loan and a percentage of the purchase price produce different dollar figures the moment your down payment moves away from 20 percent, so always confirm which base a quote is using.
Finally, treat the prepaids line with suspicion. Prepaid interest, property tax escrow, and insurance reserves are not really fees at all; they are money you would owe anyway, just collected early. When you compare two Loan Estimates side by side, strip the prepaids out first, then compare only the lender and third-party fees that a lender actually controls.
Closing costs: frequently asked questions
What are closing costs?
Closing costs are fees paid at the settlement of a home purchase. They cover lender charges (origination, underwriting), third-party services (appraisal, title insurance, attorney), and prepaids (prepaid interest, tax and insurance escrow). The CFPB estimates they typically total 2 to 5 percent of the home's purchase price.
Can closing costs be rolled into the loan?
Some lenders allow closing costs to be financed as part of the loan. This raises the loan balance and therefore the monthly payment and total interest paid over the life of the loan. Some lenders offer no-closing-cost loans with a higher interest rate instead. Discuss both options with your lender.
What is title insurance?
Title insurance protects against losses from defects in the title to a property, such as undisclosed liens or ownership disputes. The lender's policy protects the lender; the owner's policy protects the buyer. Both are typically paid as a one-time premium at closing.
When do I pay closing costs?
Closing costs are paid at the settlement meeting, usually the day of or a few days before the purchase is finalised. Your lender must provide a Closing Disclosure at least three business days before closing so you can review all fees. Bring a cashier's check or arrange a wire transfer for the amount shown.
Official sources
- CFPB Closing Disclosure Explainer: consumerfinance.gov.
- CFPB "What are the closing costs associated with a mortgage?": consumerfinance.gov.
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial or legal advice.