Estimate your buyer closing costs
Enter your purchase details and typical fees. This is an estimate — your lender and title company will provide the final numbers. Use it to plan your budget and avoid surprises at the closing table.
Closing Costs Calculator
Estimate buyer closing costs, prepaid items, and your total cash to close in seconds. Adjust sliders for home price, down payment, lender fees, title/escrow, and taxes. Then share the breakdown with your agent, partner, or lender.
🧾Line‑item closing cost breakdown
🎚️Sliders update results instantly
💰Cash‑to‑close estimate (down payment + costs)
📱Shareable summary for texts & emails
🧠 How it works
Closing costs, prepaids, and cash to close — explained
When people say “closing costs,” they often mean everything the buyer pays at settlement. In practice, your closing table number is usually made of three buckets:
- 1) Down payment — the portion of the purchase price you’re paying in cash (e.g., 20%).
- 2) Closing costs — lender fees, title/escrow fees, recording, and local taxes/charges.
- 3) Prepaid items — up‑front funding for things that cover future periods (often property taxes and homeowners insurance).
This calculator estimates each bucket and then adds them up into Cash to Close. It is meant to answer the question: “If I’m buying this home, roughly how much money do I need available on closing day?”
What counts as “closing costs” vs “prepaids”?
A helpful mental model: closing costs are mostly transaction fees (paid once), while prepaids are money that funds future bills (paid now, used later). Some lenders place certain items in escrow, which means you pay them at closing, but they’re not “fees” — they’re deposits.
The three core formulas
- Down payment ($):
Down = Price × (Down% ÷ 100) - Loan amount ($):
Loan = Price − Down - Cash to close ($):
CashToClose = Down + ClosingCosts + Prepaids
How lender fees are estimated
Lender fees are often quoted as a percentage of the loan amount (not the purchase price). This calculator includes:
- Origination fee:
Origination = Loan × (Origination% ÷ 100) - Discount points:
Points = Loan × (Points% ÷ 100)
Discount points are optional. Paying points can reduce your interest rate, but it increases cash due at closing. If you aren’t sure, leave points at 0%.
How title/escrow and taxes are estimated
Title insurance is sometimes priced relative to the purchase price, while escrow/settlement fees and recording fees are often flat amounts. Transfer taxes can be a percentage of the purchase price in some places.
- Title insurance:
Title = Price × (Title% ÷ 100) - Transfer tax:
TransferTax = Price × (TransferTax% ÷ 100) - Escrow + Recording: entered as flat fees
How prepaids are estimated
Prepaids depend heavily on your closing date, lender escrow rules, and local billing cycles. This calculator uses a simple approach that is still useful for budgeting:
- Monthly property tax estimate:
TaxMonthly = (Price × TaxRate% ÷ 100) ÷ 12 - Prepaid property taxes:
PrepaidTax = TaxMonthly × PrepaidTaxMonths - Monthly insurance estimate:
InsMonthly = AnnualInsurance ÷ 12 - Prepaid insurance:
PrepaidIns = InsMonthly × PrepaidInsMonths
Why this is great for virality (and for your wallet)
Closing costs are one of the most confusing parts of buying a home — and they’re a common source of stress in group chats and family conversations. A clear estimate with sliders is easy to screenshot and share: “Here’s our price, here’s the down payment, and here’s the cash we need.” That’s the goal.
🧾 Example
Worked example you can copy
Let’s walk through a realistic buyer scenario. Suppose you’re buying a home for $400,000 with a 20% down payment. That means:
- Down payment = $400,000 × 20% = $80,000
- Loan amount = $400,000 − $80,000 = $320,000
Now assume these fees (similar to the defaults in the calculator):
- Origination: 1.00% of loan = $320,000 × 1% = $3,200
- Points: 0% = $0
- Appraisal: $650
- Inspection: $500
- Title insurance: 0.50% of price = $400,000 × 0.5% = $2,000
- Escrow/settlement: $1,200
- Recording: $250
- Transfer tax: 0% = $0
Closing costs subtotal (fees) = 3,200 + 650 + 500 + 2,000 + 1,200 + 250 = $7,800.
Now add prepaids
If the property tax rate is 1.20%/year, annual property taxes are $400,000 × 1.2% = $4,800, or $400/month. If you prepay 3 months, that’s $1,200.
If annual homeowners insurance is $1,800, that’s $150/month. If you prepay 12 months, that’s $1,800.
Prepaids subtotal = 1,200 + 1,800 = $3,000.
Total cash to close
Cash to close = Down payment (80,000) + Closing costs (7,800) + Prepaids (3,000) = $90,800.
How to use this estimate
- Set a buffer (often 5%–10%) because real quotes vary.
- If you negotiate seller credits, subtract them from closing costs.
- If you’re buying points, your cash to close increases — but your monthly payment may drop.
🔗 Related tools
More calculators that pair well with closing costs
Use these to plan the full purchase: monthly payment, affordability, ROI, and taxes.
FAQ (quick answers)
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Are closing costs the same everywhere?
No. Lender fees vary by lender and credit profile. Title/escrow fees vary by state and even by county. Transfer taxes can be huge in some areas and zero in others. Use this as a ballpark, then confirm with your Loan Estimate (LE) and Closing Disclosure (CD).
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Do I pay closing costs on top of my down payment?
Usually, yes. Down payment and closing costs are separate. Some buyers negotiate seller credits, lender credits, or roll certain costs into the rate. But you should plan as if you’ll pay both unless your deal terms say otherwise.
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What’s the fastest way to reduce cash to close?
The biggest levers are (1) reducing discount points, (2) negotiating seller credits, and (3) shopping lenders/title companies. Lowering your down payment reduces cash to close too — but can increase mortgage insurance and monthly payment.
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Should I buy discount points?
Points can make sense if you’ll keep the loan long enough to “break even.” If paying $2,000 in points saves you $40/month, break‑even is about 50 months. If you might move/refi sooner, points may not be worth it.
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Why are prepaids sometimes surprisingly high?
Prepaids depend on timing. If you close right before tax bills are due, you may need more months funded in escrow. Insurance prepayment can also be 12 months up front.
Ways to cut closing costs (practical checklist)
- Ask for the Loan Estimate early: compare “Section A” lender fees across lenders.
- Shop title/escrow: in many states you can choose, and pricing varies.
- Consider lender credits: a slightly higher rate can reduce cash due now.
- Negotiate seller credits: especially when the market is slower.
- Skip points unless you’ve done break‑even math: points are optional.
- Time your closing: if possible, closing right after a tax cycle can reduce prepaids.
MaximCalculator provides simple, user-friendly tools. Always treat results as entertainment and double-check any important numbers elsewhere.