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Omnikalc

Closing costs calculator for home buyers

Estimate the buyer's closing costs on a home purchase: lender fees, title and settlement, transfer taxes and prepaid escrow, plus the total cash you need at closing.

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Results

Estimated closing costs

$11,600

As a share of the price

2.90%

Typical Buyer closing costs usually run between 2% and 5% of the purchase price.

Cash needed at closing

$91,600

Loan amount
$320,000
Lender and third-party fees
$4,700
Title and settlement
$3,200
Prepaid taxes and insurance
$2,900

Closing costs by home price

Estimated closing costsAs a share of the priceCash needed at closing
$200,000 current$7,4503.72%$47,450
$300,000 current$9,5253.17%$69,525
$400,000 current$11,6002.90%$91,600
$500,000 current$13,6752.73%$113,675
$750,000 current$18,8632.51%$168,863
$1,000,000 current$24,0502.40%$224,050

The cash you need beyond the down payment

When you buy a home with a mortgage, the down payment is only part of the cash you bring to closing. Closing costs cover the lender’s charges, third-party services, title insurance, government fees and the first deposits into your escrow account. They usually add 2% to 5% of the purchase price. This calculator estimates each group of costs and the total cash to close.

How the estimate is built

  1. Lender and third-party fees = loan amount × origination % + appraisal, inspection, credit report and survey.
  2. Title and settlement = price × title %. This covers the lender’s and owner’s title insurance policies, the title search and the escrow or attorney fee.
  3. Transfer taxes and recording fees = price × transfer %. Who pays transfer tax depends on the state and on local custom.
  4. Prepaid items = price × property tax rate ÷ 12 × months of escrow + first-year homeowners insurance premium.
  5. Cash to close = down payment + all of the above.

Worked example: a $400,000 home with 20% down

Using the default assumptions:

  1. Loan amount: 400,000 × 80% = $320,000.
  2. Lender and third-party fees: 1% × 320,000 + 1,500 = $4,700.
  3. Title and settlement: 0.8% × 400,000 = $3,200.
  4. Recording and transfer: 0.2% × 400,000 = $800.
  5. Prepaids: 3 months of 1.1% property tax ($1,100) + $1,800 insurance = $2,900.
  6. Closing costs: $11,600, or 2.9% of the price.
  7. Cash to close: 80,000 + 11,600 = $91,600.

Closing costs by price

Home price Closing costs Share of price Cash to close (20% down)
$200,000 $7,450 3.72% $47,450
$300,000 $9,525 3.17% $69,525
$400,000 $11,600 2.90% $91,600
$500,000 $13,675 2.73% $113,675
$750,000 $18,862 2.51% $168,862
$1,000,000 $24,050 2.40% $224,050

Fixed fees weigh more on cheaper homes, so the percentage falls as the price rises.

Reading your Loan Estimate

Your lender must send a standardized Loan Estimate within three business days of your application, and a Closing Disclosure at least three business days before closing. Section A lists origination charges, sections B and C list services you cannot and can shop for, section E lists taxes and government fees, and sections F and G list prepaids and the initial escrow deposit. Compare estimates from at least two lenders line by line.

Ways to reduce what you pay

  • Shop for title insurance and settlement services where your state allows it.
  • Ask the seller for a closing-cost credit, especially in a slower market.
  • Decide whether buying discount points is worth it: each point costs 1% of the loan and pays off only if you keep the loan long enough.
  • Look for state housing finance agency or local first-time buyer programs that cover part of the closing costs.
  • Close late in the month to reduce prepaid daily interest.

Frequently asked questions

How much are closing costs for a buyer?

Buyers typically pay 2% to 5% of the purchase price. On a $400,000 home with 20% down and the default assumptions, closing costs come to about $11,600, or roughly 2.9%, on top of the $80,000 down payment.

What is included in closing costs?

Lender charges (origination fee, discount points, underwriting), third-party services (appraisal, credit report, inspection, survey), title insurance and settlement or attorney fees, government recording fees and transfer taxes, and prepaid items such as the first year of homeowners insurance and a few months of property tax for the escrow account.

Where can I see my actual closing costs?

Within three business days of your mortgage application, the lender must send a Loan Estimate listing every expected cost. At least three business days before closing you receive the Closing Disclosure with the final figures. Compare the two line by line.

Can I reduce closing costs?

Shop for title insurance and services the lender lets you choose, compare Loan Estimates from several lenders, ask the seller for a closing-cost credit, and consider closing near the end of the month to reduce prepaid interest. Some state and local first-time buyer programs also cover part of the costs.

What about closing costs in the UK?

In England and Northern Ireland the largest cost is Stamp Duty Land Tax, charged in bands on the price, plus conveyancing solicitor fees, searches, a survey and the Land Registry fee. Scotland and Wales have their own property transaction taxes. This calculator follows the US structure, so treat UK figures as a rough guide only.

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Results are estimates provided for information purposes. They do not replace professional advice.

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