Transaction Costs

Closing Costs Calculator

Estimate your total closing costs as a buyer or seller. Edit any line item to match your actual quotes.

Transaction Details

Enter your transaction. Every blank field falls back to the default printed under it.

Blank assumes 80% LTV. Enter 0 for a cash purchase and every lender fee drops to $0.

Each point is 1% of the loan amount, paid at closing.

Assumptions used in the math

Drives prepaid interest. Blank = 7%.

Days from closing to month end. Blank = 15; a month-end close is near 0.

Blank = 1.0% of price. The State selector does not change this - use your county bill.

Blank = $1,500/yr. One premium drives both the 12-month prepaid and the 3-month reserve.

Total for both agents, paid by the seller. Blank = 5%; enter 0 for a private sale.

Mortgage balance the seller still owes. Subtracted from net proceeds. Blank = $0.

Understanding Closing Costs

Closing costs are fees paid at the end of a real estate transaction. Buyers typically pay 2-5% of the home price, while sellers pay 6-10% (mostly agent commissions). Use this calculator to estimate your costs and edit any line item to match actual quotes from your lender or title company.

Tips for Reducing Closing Costs

  • Shop around: get quotes from multiple lenders and title companies
  • Negotiate: ask the seller to contribute to closing costs
  • Skip optional services: a home warranty and some inspections may be optional
  • Close at month-end: reduces prepaid interest charges - set the days of prepaid interest to 0 to see it
  • Paying cash: enter a loan amount of 0 and every lender fee, the prepaid interest and the escrow items drop out

Worked example

On a 350,000 dollar purchase with 20 percent down (a 280,000 dollar loan) the defaults in this calculator produce about 3,475 dollars of lender fees, 1,750 dollars of title insurance, 500 dollars for the appraisal, and 3,555 dollars of prepaids and reserves, for a buyer total of 11,830 dollars, about 3.4 percent of the price. A seller on the same deal pays 17,500 dollars of agent commission at the 5 percent default plus 8,600 dollars of title, transfer, proration and prep costs, so 26,100 dollars or 7.5 percent, before any mortgage payoff. Editing each line to match your real quotes turns these defaults into a number you can plan around.

What is included in closing costs

Closing costs group into lender fees, third-party services, and prepaids. Lender fees cover origination and any points. Third-party services include title insurance, escrow, appraisal, and recording. Prepaids are not really fees at all: they are property taxes, homeowners insurance, and interest paid in advance and held in escrow. Separating them helps you see which costs are negotiable, which are fixed by your state, and which are simply your own money moving into an escrow account.

Frequently asked questions

How much are closing costs for a buyer?

Buyer closing costs typically run 2 to 5 percent of the purchase price. On a 350,000 dollar home that is roughly 7,000 to 17,500 dollars. The largest pieces are usually lender fees, title insurance, an appraisal, and prepaid items such as property taxes and homeowners insurance placed into escrow. Your exact total depends on your lender, your state, and whether you buy discount points.

How much are closing costs for a seller?

Sellers usually pay 6 to 10 percent of the sale price, and the bulk of that is real estate agent commission. The rest covers title and escrow fees, transfer taxes, prorated property taxes, and any concessions negotiated with the buyer. Because commission dominates, the single biggest lever on a seller closing cost is the commission rate you agree to. This calculator defaults to a 5 percent total commission and lets you change the rate, so you can see exactly what a point of commission is worth. Net proceeds also subtract whatever mortgage balance you still owe, which you enter separately.

Who pays closing costs, the buyer or the seller?

Both pay closing costs, just different ones. Buyers cover lender and loan-related fees plus prepaids, while sellers cover agent commissions and transfer costs. Many items are negotiable, and in a buyer-friendly market a seller may agree to a credit toward the buyer closing costs. This calculator lets you model both sides so you can see the full picture of a transaction.

Can closing costs be rolled into the loan?

Sometimes. On a refinance you can often roll closing costs into the new loan balance. On a purchase you usually cannot finance them directly, but you can ask the seller for a closing cost credit or accept a slightly higher interest rate in exchange for lender credits. Each option lowers your cash at closing but raises your long-term cost, so weigh them against how long you plan to hold the loan.

What is title insurance and do I need it?

Title insurance protects against defects in the property title, such as unknown liens, ownership disputes, or recording errors. A lender policy is almost always required when you finance, and it protects the lender. A separate owner policy protects your equity and is optional but widely recommended, since a single title claim can be far larger than the one-time premium.

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