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 with a $320,000 loan, typical closing costs are roughly $6,400 to $16,000 (2 to 5 percent of the loan amount), 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) | |
| Third-party fees | |
| (default: 0.5% of loan) | |
| (default: 0.3% of loan) | |
| Prepaids and escrow | |
| (default: loan x rate / 365 x 15) | |
| (estimate; enter your actual amount) | |
| (default: $150 x 2) | |
Estimated closing costs
Transfer taxes for the selected state are not included. Check your state or county assessor for the applicable rate.
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)
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 loan amount.
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.