Closing Cost Calculator
Estimate the one-time fees you pay at closing to finalize a mortgage. Edit each line item — lender, title, appraisal, inspection, prepaids and escrow — to see your total closing costs in dollars and as a percentage of the loan and the price.
Disclaimer: This calculator provides estimates for general informational and educational purposes only. It is not financial, lending, tax or legal advice, and it does not guarantee any loan terms, rate, payment or approval. Actual figures depend on your lender, credit, location and the final terms of any loan. Always confirm numbers with a licensed mortgage lender, financial advisor or housing counselor before making a decision.
What closing costs are
Closing costs are the one-time fees you pay to finalize a mortgage and take ownership of a home. They are charged at closing — the day the loan funds and the title transfers — and they sit on top of any down payment you bring. As a rule of thumb, closing costs run about 2% to 5% of the loan amount, so on a typical loan they add up to several thousand dollars. Knowing the figure ahead of time means no surprises when you sign.
The main categories of closing costs
Most closing costs fall into three groups, and this calculator lets you edit every line so the total reflects your own quote:
- Lender and origination fees. What the lender charges to process and underwrite the loan, usually expressed as a percentage of the loan amount. This bucket also covers any discount points you choose to buy to lower your interest rate.
- Third-party services. Fees paid to outside companies: the appraisal that confirms the home’s value, title insurance and a title search, settlement, escrow and recording charges, a home inspection, a credit report and a flood certification. You can often shop several of these.
- Prepaids and escrow set-asides. Money collected up front to fund your escrow account for property taxes and homeowners insurance, plus prepaid interest from the closing date to the end of the month. These are not really “fees” — they are amounts you would owe anyway, just collected early.
Who pays what
On a purchase, the buyer pays most closing costs, while the seller typically covers the real-estate agent commissions and may agree to seller concessions toward the buyer’s costs. Many items are negotiable, and a lender credit can cover some costs in exchange for a slightly higher interest rate. Government charges such as recording fees and transfer taxes are fixed, but lender, title and settlement charges can often be shopped or negotiated down.
How refinances differ
A refinance replaces your existing mortgage, so there is no real-estate agent commission and no transfer of ownership. You still pay the lender or origination fee, an appraisal, title insurance and settlement charges, and you set up a new escrow account. Expect a similar 2% to 5% range and weigh those costs against your monthly savings to find your break-even point.
A worked example
Using the default figures — a $350,000 home with a $280,000 loan — the pieces add up like this:
- Origination at 0.5% of $280,000 = $1,400.
- Prepaids and escrow at 1.0% of the loan = $2,800.
- Third-party and title fees = $600 + $1,400 + $800 + $450 + $500 = $3,750.
- Total closing costs ≈ $7,950, which is about 2.84% of the loan.
That lands at the low end of the typical 2% to 5% band, which is what you would hope for with modest lender fees and a single set of prepaids.
What affects your closing costs
- Loan size. Many fees scale with the loan amount, so a larger loan means larger origination, title and prepaid figures.
- Location and taxes. Transfer taxes, recording fees and property-tax escrow set-asides vary widely from state to state and even county to county.
- Lender fees and points. Origination charges differ between lenders, and choosing to buy down the rate with points adds to your up-front cost.
- Title and escrow. Title insurance and settlement charges depend on the provider and the local rate schedule — these are often shoppable.
- Whether you buy down the rate. Paying discount points lowers your interest rate but raises the cash you owe at closing.
These are estimates. Closing costs vary widely by state and lender. Your official Loan Estimate and Closing Disclosure from the lender are the authoritative figures — always rely on those before you close. Remember too that prepaids and escrow are set-asides for taxes and insurance you would owe anyway, not pure “fees”.
Frequently asked questions
How much are closing costs?
Closing costs commonly run about 2% to 5% of the loan amount. On a $280,000 loan that is roughly $5,600 to $14,000. The exact figure depends on your state, your lender, the price of the home and whether you buy points or prepay items like property taxes and insurance.
What's included in closing costs?
They fall into three buckets: lender or origination fees (and any discount points), third-party services (appraisal, title insurance, settlement and recording, home inspection, credit report, flood certification), and prepaids and escrow set-asides for property taxes, homeowners insurance and prepaid interest. This calculator lets you edit each line.
Can I roll closing costs into the loan?
Sometimes. On a refinance you can often add closing costs to the new balance so there is no cash out of pocket, though you then pay interest on them and your payment is slightly higher. On a purchase you generally cannot finance closing costs directly, but seller concessions or lender credits can cover part of them.
Who pays closing costs?
On a purchase the buyer pays most closing costs, but the seller typically pays the real-estate agent commissions and may agree to concessions toward the buyer’s costs. Many fees are negotiable, and lender credits can offset costs in exchange for a slightly higher rate.
Are closing costs negotiable?
Yes, several of them. Lender and origination fees, title and settlement charges, and some third-party services can be shopped or negotiated. Government recording fees and transfer taxes are fixed. Comparing Loan Estimates from multiple lenders is the most reliable way to lower the total.
Do refinances have closing costs?
Yes. A refinance skips the real-estate agent commission, but you still pay lender or origination fees, an appraisal, title insurance and settlement charges, plus prepaids and a new escrow set-up. Plan on a similar 2% to 5% range and weigh those costs against your monthly savings.
Related tools
Pair this with the refinance calculator to see your new payment and savings, the mortgage points calculator to test buying down your rate, the cash-out refinance calculator if you want to tap equity, and the VA loan calculator if you are using a VA loan.