Closing Cost Calculator
Estimate total closing costs for home purchases and refinances
Closing Cost Breakdown
How to Use This Tool
Enter your home's purchase price and expected down payment percentage first. Select your loan type and term from the dropdown menus, then input your interest rate and local property tax rate.
Add your annual homeowners insurance cost, monthly HOA fees (if applicable), and estimated lender, third-party, and prepaid closing costs. Click Calculate to see a full breakdown of expenses and your estimated cash to close.
Use the Reset button to clear all fields and start over. The Copy Results button lets you save the full breakdown to your clipboard for easy reference.
Formula and Logic
Down Payment Amount is calculated as Purchase Price multiplied by (Down Payment Percentage / 100). Loan Amount equals Purchase Price minus Down Payment Amount.
Funding fees vary by loan type: Conventional loans have no upfront funding fee, FHA loans charge 1.75% of the loan amount, VA loans charge 2.15% for first-time use, and USDA loans charge 1% of the loan amount.
Total Closing Costs equal the sum of Lender Fees, Third-Party Fees, Prepaid Costs, and the Funding Fee. Monthly Principal and Interest (P&I) uses the standard mortgage formula: Loan Amount × (Monthly Interest Rate × (1 + Monthly Interest Rate)^Number of Payments) / ((1 + Monthly Interest Rate)^Number of Payments - 1).
Monthly PITI (Principal, Interest, Taxes, Insurance) adds P&I to monthly property tax, monthly insurance, and monthly HOA fees. Estimated Cash to Close is the sum of your Down Payment Amount and Total Closing Costs.
Practical Notes
Closing costs typically range from 2% to 5% of the purchase price, depending on your location and loan type. Third-party fees like appraisal, title search, and home inspection costs vary widely by provider, so shop around for quotes to reduce expenses.
FHA and VA loans have mandatory upfront fees that are included in closing costs. Some prepaid costs, like property tax and insurance escrow, may be required by your lender to fund initial escrow accounts.
Ask your lender for a Loan Estimate within 3 days of applying for a mortgage, which breaks down all expected closing costs. You can negotiate some fees with the seller or ask for seller concessions to cover part of your closing costs.
Why This Tool Is Useful
Homebuyers often underestimate closing costs, leading to last-minute budget shortfalls. This tool provides a detailed, personalized estimate to help you plan your savings and avoid surprises at the closing table.
Comparing different loan types is easy: switch between Conventional, FHA, VA, and USDA options to see how funding fees impact your total costs. Financial planners can use the breakdown to help clients budget for home purchases as part of their long-term financial plans.
Frequently Asked Questions
What is included in closing costs?
Closing costs include lender fees (origination, discount points), third-party fees (appraisal, title, inspection), prepaid items (escrow for taxes and insurance, prepaid interest), and loan-specific funding fees for FHA, VA, and USDA loans.
How much should I budget for closing costs?
Most homebuyers should budget 2% to 5% of the purchase price for closing costs. For a $300,000 home, that ranges from $6,000 to $15,000, depending on your loan type and location.
Can I roll closing costs into my mortgage?
Some closing costs, like funding fees for FHA and VA loans, can be rolled into your loan amount. However, this increases your total loan balance and the amount of interest you pay over the life of the loan.
Additional Guidance
Get quotes from multiple lenders to compare lender fees, which can vary by thousands of dollars. Review your Closing Disclosure carefully 3 days before closing to confirm all costs match your initial Loan Estimate.
If you have a low down payment, consider how FHA or VA loans' funding fees will impact your total closing costs. Set aside extra savings beyond your estimated cash to close to cover unexpected fees or last-minute adjustments.