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Closing Cost Calculator for Buyer
Your home purchase
Clearly labelled estimate. Typical buyer closing costs run about 2% to 5% of the home price. This estimate does not include the down payment itself, moving costs, or an FHA upfront mortgage insurance premium, VA funding fee or USDA guarantee fee, which are charged separately.
Example: $400,000 home, 20% down, conventional loan → $8,900 closing costs (2.23%), $88,900 cash at closing.
Behind the numbers
How buyer closing costs are calculated
Closing costs are the fees you pay to finalize a home purchase, on top of the down payment. This calculator starts with your loan amount, which is the home price minus the down payment. Loan origination is a percentage of the loan: 1.0% for a conventional or FHA loan and 0.5% for a VA loan. Title costs are 0.45% of the home price and prepaid items, such as prepaid interest and escrow for taxes and insurance, are 0.475% of the home price. Appraisal, recording, inspection, and the closing fee are fixed estimates in this calculator: $550, $250, $450, and $750. The total is the sum of all seven items, and the cash you need at closing is the down payment plus the closing costs.
For a $400,000 home with 20% down: down payment is 20% × $400,000 = $80,000, so the loan is $400,000 − $80,000 = $320,000. Loan origination is 1.0% × $320,000 = $3,200. Title is 0.45% × $400,000 = $1,800. Prepaid items are 0.475% × $400,000 = $1,900. Add the fixed items, $550 appraisal + $250 recording + $450 inspection + $750 closing fee, and the total is $3,200 + $550 + $1,800 + $250 + $450 + $1,900 + $750 = $8,900. Cash needed at closing is $80,000 + $8,900 = $88,900.
Examples
Examples
| Home price | Down payment | Loan | Closing costs | Cash needed at closing |
|---|---|---|---|---|
| $300,000 | 10% ($30,000) | $270,000 | $7,475 | $37,475 |
| $400,000 | 20% ($80,000) | $320,000 | $8,900 | $88,900 |
| $600,000 | 20% ($120,000) | $480,000 | $12,350 | $132,350 |
Tips
Ask your lender for a Loan Estimate early: it lists the same kinds of fees with your real numbers, and you can compare lenders line by line.
A larger down payment lowers the loan amount and the origination fee, and it can remove private mortgage insurance on a conventional loan.
Some sellers agree to pay part of your closing costs; ask your agent whether a seller credit is realistic in your market.
Keep cash ready beyond the estimate: prepaid taxes and insurance can vary by county and by the time of year you close.
Do not confuse closing costs with the down payment: both are due at closing, and this calculator shows them separately.
Good to know
Frequently asked questions
How much are closing costs for a buyer?
Typically about 2% to 5% of the home price. In the worked example on this page, a $400,000 home with 20% down has estimated closing costs of $8,900, or 2.23% of the price.
Are closing costs paid on top of the down payment?
Yes. The down payment goes toward the price of the home, and closing costs pay the lender, title company, and other parties. In the example, the buyer needs $80,000 down plus $8,900 in closing costs, for $88,900 in cash at closing.
Can closing costs be rolled into the loan?
Sometimes. Some lenders let you finance part of the costs, but that raises the loan amount and the interest you pay over time. Ask your lender which fees can be financed and which must be paid in cash.
Do FHA and VA loans have different closing costs?
Yes, in part. This calculator uses a lower origination rate for VA loans, but FHA loans add an upfront mortgage insurance premium and VA loans add a funding fee, which are not included in this estimate and are charged separately.