Closing Cost Calculator
Estimate the closing costs on a home purchase from your loan amount: lender origination, discount points, title, and other fees.
How to use this tool
- Enter your loan amount (home price minus down payment).
- Enter the lender's origination fee percentage from your Loan Estimate.
- Enter any discount points you plan to buy.
- Add your title/escrow fees and other fixed costs.
- Read the total closing costs and the percent-of-loan figure.
Closing costs are the cash you need beyond the down payment. This calculator estimates them from your loan amount, lender charges, and fixed third-party fees, and shows what percentage of the loan they represent.
Formula
Closing costs sum the percentage-based lender charges and the fixed third-party fees:
Origination = Loan × Origination%
Points cost = Loan × Points%
Total = Origination + Points + Title + Other
% of loan = (Total ÷ Loan) × 100
How it works
Closing costs are the one-time fees a buyer pays to finalize a mortgage and transfer the property. They typically run 2% to 5% of the loan amount and fall into two buckets: lender charges that scale with the loan (origination and discount points), and fixed third-party fees (title insurance, escrow, appraisal, credit report, and recording).
This calculator multiplies your loan by the origination and points percentages, then adds your fixed title and other fees to produce a total and a percent-of-loan figure. Comparing that percentage to the 2%–5% norm tells you quickly whether a Loan Estimate is competitive or padded.
The estimate excludes prepaid items that are not strictly fees — such as the first year of homeowners insurance, prepaid interest, and property-tax escrow deposits — because those vary widely by closing date and are returned to you as equity or coverage rather than lost to costs. Treat the result as the negotiable, fee-based portion of cash to close, and always reconcile it against your official Loan Estimate and Closing Disclosure.
Worked example
$300,000 loan with 1% origination and 0.5 points
- Origination = $300,000 × 1% = $3,000.
- Discount points = $300,000 × 0.5% = $1,500.
- Add fixed fees: $1,500 title + $1,200 other = $2,700.
- Total = $3,000 + $1,500 + $1,500 + $1,200 = $7,200.
- As a share of the loan = $7,200 ÷ $300,000 × 100 = 2.40%.
Total closing costs $7,200.00 | Origination $3,000.00 | Points $1,500.00 | 2.40% of loan
Typical closing-cost range by home price
| Home price | At 2% | At 3% | At 5% |
|---|---|---|---|
| $200,000 | $4,000 | $6,000 | $10,000 |
| $300,000 | $6,000 | $9,000 | $15,000 |
| $400,000 | $8,000 | $12,000 | $20,000 |
| $500,000 | $10,000 | $15,000 | $25,000 |
Key terms
- Closing costs
- One-time fees paid at settlement to originate the loan and transfer the property, usually 2%–5% of the loan amount.
- Origination fee
- The lender's charge for processing and underwriting the loan, quoted as a percent of the loan principal.
- Discount points
- Optional prepaid interest paid upfront to lower the mortgage rate; one point equals 1% of the loan amount.
- Title insurance
- A policy protecting the lender (and optionally the buyer) against defects in the property's legal title.
Frequently asked questions
- How much are closing costs on a house?
- Closing costs typically run 2%–5% of the loan amount. On a $300,000 loan that is roughly $6,000–$15,000, covering lender, title, and government fees. The exact total appears on your Loan Estimate and Closing Disclosure.
- Who pays closing costs, buyer or seller?
- Buyers usually pay most closing costs, but sellers can contribute through seller concessions negotiated in the contract. Some fees, like the real-estate commission, are customarily the seller's.
- Can closing costs be rolled into the loan?
- Sometimes. On a refinance or certain purchase programs you can finance some costs into the loan balance, but that raises your principal and total interest. A lender credit (higher rate for lower upfront cost) is another option.