🏠 Closing Cost Calculator 2026
Estimate Buyer & Seller Closing Costs for Real Estate Transactions
📊 Understanding Real Estate Closing Costs
The closing cost calculator helps home buyers and sellers estimate all fees due when finalizing a real estate transaction in 2026. Closing costs include lender fees, title insurance, escrow charges, prepaid taxes, and agent commissions—typically 2-5% for buyers and 6-10% for sellers.
Who needs this calculator? First-time homebuyers planning their budget, sellers estimating net proceeds, real estate agents preparing clients, and investors analyzing deals. Benefit: Know exactly how much cash you need at closing, avoid surprises, and negotiate with confidence by understanding every fee in your transaction.
Buyer Closing Cost Estimator
Seller Closing Cost Estimator
📝 How to Use the Closing Cost Calculator
- Select Buyer or Seller tab — Click the appropriate tab based on whether you're purchasing or selling a home. Each has different fees to calculate.
- Enter the home price — Input the purchase price (buyers) or expected sale price (sellers). This is the primary factor in calculating percentage-based fees like title insurance.
- Add loan details (buyers) — Enter your expected loan amount (purchase price minus down payment), loan type (Conventional, FHA, VA), interest rate, and any discount points you're paying.
- Select your state/region — Choose High, Average, or Low cost region. States like California and New York have higher title and transfer fees than midwestern states.
- Enter seller-specific info (sellers) — Add your current mortgage balance, agent commission rate, and your state's transfer tax rate.
- Click Calculate — View your detailed breakdown of all closing costs with totals for each category and the total cash needed at closing.
📐 Closing Cost Formula & Calculation Method
Buyer Total Cash at Closing Formula
Where: Down Payment = Purchase Price − Loan Amount. Lender Fees include origination (typically 1% of loan), discount points, appraisal ($500-700), and underwriting ($400-600). Title Fees cover insurance, escrow, and recording. Prepaid Items include taxes, insurance, and interest.
Seller Net Proceeds Formula
Where: Mortgage Payoff is your remaining loan balance. Commission is typically 5-6% of sale price (split between buyer's and seller's agents). Transfer Tax varies by state (0-2%). Closing Fees include escrow, attorney, and HOA transfer fees.
Prepaid Interest Formula
Explanation: Mortgage interest is paid in arrears, so you prepay interest from your closing date to the first of the next month. If you close on the 15th, you'll prepay ~15 days of interest. Closing at month-end reduces this amount.
📊 Closing Cost Examples
Example 1: First-Time Buyer — Conventional Loan
Scenario: Jessica is a first-time homebuyer purchasing a $320,000 condo in Ohio with 10% down and a Conventional loan at 6.75%.
- Purchase Price: $320,000
- Down Payment: $320,000 × 10% = $32,000
- Loan Amount: $288,000
- Lender Fees: Origination ($2,880) + Appraisal ($550) + Underwriting ($500) = $3,930
- Title & Escrow: Title Insurance ($1,280) + Lender's Title ($432) + Escrow ($500) + Recording ($150) = $2,662
- Prepaid: Interest ($788) + Insurance ($1,280) + Tax Escrow ($800) = $2,868
Result: Total Closing Costs: $9,460 (2.96%) | Total Cash Needed: $41,460
Example 2: FHA Buyer — Low Down Payment
Scenario: Marcus is buying his first home for $275,000 using an FHA loan with just 3.5% down.
- Purchase Price: $275,000
- Down Payment: $275,000 × 3.5% = $9,625
- Loan Amount: $265,375
- FHA Upfront MIP: $265,375 × 1.75% = $4,644 (can be financed)
- Lender Fees: $3,754
- Title & Escrow: $2,400
- Prepaid Items: $2,550
Result: Closing Costs: $13,348 (4.85% including MIP) | Total Cash: $22,973 — FHA has higher costs but lower down payment!
Example 3: Seller — Estimating Net Proceeds
Scenario: The Patels are selling their California home for $850,000 with a remaining mortgage of $380,000.
- Sale Price: $850,000
- Mortgage Payoff: $380,000
- Agent Commission: $850,000 × 5% = $42,500
- Transfer Tax (CA ~0.11%): $935
- Title Insurance: $3,400
- Other Fees (Escrow, HOA, Attorney): $1,150
- Total Seller Costs: $47,985
Result: Net Proceeds: $422,015 — That's the equity check the Patels receive after closing!
📊 Closing Costs Reference Table 2026
| Fee Type | Who Pays | Typical Range | Average Amount |
|---|---|---|---|
| Loan Origination Fee | Buyer | 0.5% - 1% of loan | $2,000 - $4,000 |
| Discount Points | Buyer | 0 - 3% of loan | $0 - $8,000 |
| Appraisal | Buyer | $450 - $750 | $550 |
| Home Inspection | Buyer | $300 - $500 | $400 |
| Title Insurance (Owner's) | Varies* | 0.3% - 0.6% | $1,000 - $2,500 |
| Title Insurance (Lender's) | Buyer | 0.1% - 0.2% | $400 - $800 |
| Escrow/Closing Fee | Split | $400 - $800 | $500 |
| Agent Commission | Seller | 5% - 6% | 5.5% |
| Transfer Tax | Varies* | 0% - 2% | 0.5% |
| Recording Fees | Buyer | $100 - $250 | $150 |
| Prepaid Property Tax | Buyer | 2-6 months | $500 - $2,000 |
| Homeowner's Insurance | Buyer | 12 months prepaid | $1,000 - $3,000 |
| FHA Upfront MIP | Buyer | 1.75% of loan | $4,000 - $6,000 |
| VA Funding Fee | Buyer | 1.25% - 3.3% | $3,500 - $9,000 |
*Buyer/seller responsibility varies by state custom. Source: Consumer Financial Protection Bureau (CFPB), 2026 estimates.
💡 Important Tips for Managing Closing Costs
- Shop for title insurance: Unlike other fees, title insurance rates vary by company. Get 2-3 quotes and potentially save $500-1,000. Ask for a "reissue rate" if the property sold recently.
- Negotiate seller concessions: Buyers can ask sellers to cover 2-6% of closing costs (varies by loan type). This is especially effective in buyer's markets.
- Close at month-end: Prepaid interest is calculated daily from closing to the first of the next month. Closing on the 28th means paying only 2-3 days of interest vs. 15+ days mid-month.
- Compare Loan Estimates: Lenders must provide a Loan Estimate within 3 business days of application. Compare at least 3 lenders—origination fees, points, and rates vary significantly.
- Ask about lender credits: Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate. Calculate break-even to see if it makes sense.
- Review the Closing Disclosure: You'll receive a Closing Disclosure 3 days before closing. Compare it to your Loan Estimate and question any discrepancies exceeding 10%.
❓ Frequently Asked Questions
Buyer closing costs typically range from 2-5% of the home purchase price. On a $350,000 home, expect $7,000-$17,500 in closing costs. This includes lender fees (1-2%), title insurance (0.5%), prepaid taxes and insurance, and various smaller fees. FHA and VA loans may have additional upfront fees.
Sellers typically pay 6-10% of the sale price in closing costs. The largest expense is real estate agent commissions (5-6%), followed by transfer taxes (0-2% depending on state), title insurance for the buyer (in some states), and various closing fees. On a $400,000 sale, expect $24,000-$40,000 in seller costs.
Some closing costs can be financed. FHA allows the upfront MIP (1.75%) to be added to the loan. VA Funding Fees can also be financed. However, most other closing costs must be paid in cash. Alternatively, you can negotiate seller concessions or take a higher interest rate in exchange for lender credits.
Closing costs are fees for processing the transaction (lender fees, title insurance, appraisal). Prepaids are costs you're paying in advance that you'd owe anyway—like property taxes, homeowner's insurance, and mortgage interest. Prepaids go into your escrow account; closing costs are one-time fees paid at closing.
It varies by state and is negotiable. In many states, sellers customarily pay for the owner's title insurance policy (protecting the buyer), while buyers pay for the lender's policy. In other states like California and New York, buyers often pay both. Check local customs and negotiate—everything in real estate is negotiable.
Some closing costs are deductible. Mortgage points (discount points) are generally deductible in the year you buy. Property taxes and mortgage interest paid at closing are deductible. However, most other closing costs (title fees, appraisal, etc.) are not tax deductible for primary residences. Consult a tax professional for your specific situation.
This calculator provides estimates within 10-15% of actual costs based on national averages. Actual closing costs vary significantly by state, lender, loan program, and negotiated terms. For the most accurate estimate, request a Loan Estimate from your lender—they're legally required to provide one within 3 business days of your application.
🔗 Related Calculators
📚 Official Resources
- CFPB - Buying a Home Guide
- HUD - Home Buying Resources
- CFPB - Understanding Loan Estimates
- National Association of Realtors
Disclaimer: This calculator provides estimates based on national averages and typical fee structures. Actual closing costs vary by state, lender, and individual transaction. For accurate figures, request a Loan Estimate from your lender. This is not financial or legal advice.
Last updated: January 2026 | Created by Omnicalculator.space