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Closing Cost Estimator

The down payment gets the headlines, but closing day brings a second bill — lenders, title companies, and the tax collector all want their slice. This estimator itemizes every line, so you can see exactly what a home costs to close, which fees are negotiable, and what you actually need in the bank on signing day.

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Every fee in your closing, itemized

Lender charges, title costs, prepaids, and escrow — line by line, with points and lender credits applied. On the defaults ($400,000 price, 20% down, 6.5%, no points or credits): $7,383, roughly 1.8% of the price — toward the low end of the typical 2–5% range.

Home price ($)

The purchase price. Closing costs usually land at 2–5% of this number.

Down payment (% of price)

Percent of the price you pay in cash. Most closing fees are based on the loan, not the price.

Mortgage rate (% APR)

Used only for the prepaid-interest line. Points change the effective rate, not this field.

Discount points

Optional rate buy-down. One point = 1% of the loan, paid at closing. Max 3 here.

Lender credit ($)

Cash the lender applies to your costs in exchange for a higher rate — the mirror image of points.

Escrow cushion (months)

Months of property tax and insurance the lender collects up front. Two is standard.

Prepaid interest (days)

Interest charged from closing day to month-end. Close late in the month and this line shrinks.

Estimated total closing costs—Enter your price, down payment, and rate

Total closing costs—

—plus your down payment

Total cash to close—

Line-by-line breakdown

Line item	Amount	How it’s figured

Enter your numbers above.

How it works: loan = price − down payment; origination = 0.75% of the loan; discount points = points × 1% of the loan; title insurance = $4.50 per $1,000 of the first $100,000 plus $3.50 per $1,000 after; prepaid interest = loan × rate × days ÷ 365; tax escrow = months × 1.1% of the price ÷ 12; insurance escrow = months × $150; then lender credits come off. On the defaults: $2,400 origination + $2,245 title-related + $855 prepaid interest + $1,033 escrow + $500 appraisal + $350 inspection = $7,383 (1.8% of $400,000). Nothing you type leaves your device.

Closing costs are the price of the transaction — not the house

Your down payment buys equity: it’s your ownership stake. Closing costs pay for everything required to make the transaction happen — the lender’s work, the title company’s work, the appraisal, the recording, and the first dollops of tax and insurance. That’s why they’re quoted separately, and why the rule of thumb is 2–5% of the purchase price, on top of whatever you put down. On the defaults, the math comes to $7,383 — $80,000 of down payment and $7,383 of costs are two different piles of money you need on signing day: $87,383 total.

Output · formula · meaning

Output	Formula	What it means
Loan amount	price − down payment	The base most fees scale from: $320,000 on the defaults.
Origination fee	0.75% × loan	The lender’s charge for making the loan: $2,400 on the defaults. Often the single biggest line item.
Discount points	points × 1% × loan	$0 on the defaults. One point ($3,200) buys roughly a 0.25% rate cut for the life of the loan.
Title insurance (lender’s)	$4.50/$1,000 on the first $100k + $3.50/$1,000 after	Protects the lender against title defects: $1,220 on the defaults ($450 + $770).
Prepaid interest	loan × APR × days ÷ 365	Interest from closing day to month-end: $854.79 for 15 days at 6.5%. Close on the 28th instead and this line nearly vanishes.
Escrow (tax + insurance)	months × (1.1% of price ÷ 12) + months × $150	The lender’s up-front cushion: $733.33 tax + $300 insurance on the defaults.
Lender credit	flat dollar amount off the total	$0 on the defaults. Credits lower closing costs in exchange for a higher rate.
Total closing costs	sum of all lines − credits	The full second bill: $7,383 on the defaults — about 1.8% of the $400,000 price.
Total cash to close	closing costs + down payment	What your bank account actually needs: $87,383 on the defaults.

Worked example: closing on a $400,000 house

Price $400,000, 20% down ($80,000), so the loan is $320,000 at 6.5%, no points, no lender credit, closing mid-month (15 days prepaid), 2 months of escrow. The lines: origination $2,400 (0.75% of $320,000); appraisal $500; inspection $350; title search $250; title insurance $1,220 ($4.50 × 100 on the first $100k + $3.50 × 220 on the rest); attorney/settlement $650; recording $125; prepaid interest $854.79 (320,000 × 0.065 × 15 ÷ 365); tax escrow $733.33 (2 × 0.011 × 400,000 ÷ 12); insurance escrow $300. Sum: $7,383 — add the $80,000 down payment and you walk in with $87,383. One point of discount would have added $3,200 to the bill and cut the rate roughly a quarter point.

Who uses this

First-time buyers: learning that “20% down” really means 20% plus another 2–5% in costs.
Offer negotiators: deciding how much seller concession to ask for and whether to shop title fees.
Refinancers: the same fee structure applies when you refi — this is what the refinance break-even calculator divides by the monthly savings.
Students & researchers: a line-by-line model of what a real Loan Estimate contains, with every formula shown.

Accuracy & limitations

This is a standardized estimate, not a Loan Estimate. Real fees vary by state, county, and lender: state/local transfer taxes (some states charge over 1% of the price) are not included because they swing too widely, and an owner’s title policy — the optional policy that protects you rather than the lender — is left out. The title-insurance bands, the 0.75% origination, and the escrow conventions are typical industry figures; your lender’s Loan Estimate is the authoritative number and is legally required within three business days of your application. Figures round to whole dollars; nothing here is lending or tax advice.

Model the monthly payment in the mortgage calculator, see how closing costs eat into a refi in the refinance break-even calculator, check whether the whole package fits your income in how much house you can afford, and read how closing costs are calculated for the negotiability and tax rules behind each line.

Cite this calculatorBright Side Kit. “Closing Cost Estimator: All Fees Itemized.” brightoolbox.com, 2026.

Bright Side Kit. "Closing Cost Estimator: All Fees Itemized." https://brightoolbox.com/closing-cost-estimator/ Accessed October 21, 2026.

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Frequently asked questions

Are closing costs separate from the down payment?

Yes — they’re two different piles of money. The down payment buys equity in the house; closing costs (2–5% of the price) pay for the transaction itself: the lender, the title company, the appraisal, recording, and prepaid tax and insurance. On a $400,000 house with 20% down you need roughly $80,000 + $7,383 = $87,383 at closing, not just $80,000.

Can the seller pay my closing costs?

Yes — these are called seller concessions. Conventional loans cap them by down payment: 3% of the price with 10% or less down, 6% with 10–25% down, and 9% above 25% down; FHA allows 6% and VA 4%. A concession directly cuts the cash you bring, and sellers often prefer it over lowering the price in a competitive market.

Can I roll closing costs into my mortgage?

On a purchase, generally no — the loan can’t exceed the appraised value, so most buyers pay costs in cash. There are two indirect routes: seller concessions (the seller effectively funds them) and lender credits (you accept a higher rate in exchange for cash at closing). Refinances are the exception: rolling costs into the new balance is routine. Enter a credit in the estimator above to see what each dollar of credit does to your total.

Which closing costs are negotiable?

The lender-controlled and shoppable ones: origination fees, discount points, title search and insurance, the appraisal, and the inspection. Real estate attorneys are also shoppable where allowed. Not negotiable: government recording fees, transfer taxes, and prepaid escrow — those are set by law or by the lender’s underwriting rules. Shopping just the title and lender fees commonly saves $500–$1,000.

Are closing costs tax deductible?

Mostly no — but the big exceptions matter. Discount points and prepaid mortgage interest are generally deductible as mortgage interest on a primary residence (points usually amortized over the loan, not taken all in year one). Property tax paid at closing feeds the SALT deduction up to its cap. The rest — appraisal, title, attorney, recording — isn’t deductible, but it’s added to your cost basis, which trims capital gains when you sell.

How much are closing costs on a $400,000 house?

The rule of thumb (2–5% of the price) says $8,000–$20,000. The line-by-line defaults on this page come to about $7,383 — slightly under 2% because state transfer taxes and the owner’s title policy aren’t included — with a typical all-in range around $8,000–$12,000 once they are. Run your own numbers above; the biggest swing factors are points, credits, and state taxes.

Does closing at the end of the month save money?

Yes — it shrinks the prepaid interest line. You owe interest from closing day through month-end, so closing on the 28th costs a few days of interest while closing on the 3rd costs nearly a full month. On the $320,000 / 6.5% default loan, 3 days costs about $171 versus $855 for 15 days. The total interest you’ll pay over the loan doesn’t change — you just pay less of it on closing day.

What’s the difference between a lender credit and discount points?

They’re mirror images. Discount points: you pay cash now (1% of the loan per point) for a permanently lower rate — a bet you’ll keep the loan long enough for the savings to win. A lender credit: the lender pays cash toward your costs now in exchange for a permanently higher rate — the right move if you expect to refinance or sell soon. Neither is free; both are just rate-for-cash trades. Try both in the estimator and compare the totals.