Closing Cost Estimator
Give clients a realistic closing cost range before they get to the table. No surprises.
| Cost Item | Low | High |
|---|
What is the Closing Cost Estimator?
The Closing Cost Estimator gives buyers and sellers an itemized projection of transaction costs — lender fees, title and escrow, transfer taxes, prepaids, and commissions — so agents can set expectations on cash-to-close and net proceeds before the offer is written.
How is it calculated?
Choose buyer or seller side, then enter the purchase price, loan amount, and your state’s typical rates. The calculator itemizes each cost category with editable percentages and totals the buyer’s cash to close or the seller’s transaction costs.
Worked example: what are the closing costs on a $400,000 home with a $320,000 loan?
- Set the inputs
Use the tool’s defaults: buyer side, $400,000 purchase price, $320,000 loan, 6.75% interest rate.
- Percentage-based lender fees
Origination runs 0.5-1% of the loan: $320,000 x 0.005 = $1,600 low, x 0.01 = $3,200 high. Lender’s title insurance adds 0.3-0.6% = $960-$1,920.
- Prepaid interest for 15 days
$320,000 x 6.75% / 365 x 15 = $887.67, rounded to $888 – a fixed figure, so low and high are the same.
- Prepaids and escrows
Property tax escrow is 1-1.5% of price = $4,000-$6,000. Add homeowners insurance $800-$1,500 and the $888 interest: prepaids bucket = $5,688-$8,388.
- Add flat buckets and total
Appraisal ($400-$750), title search, escrow, and recording sum in, bringing the estimate to $9,598 low and $16,258 high.
- Read it as a range
That’s 2.4-4.1% of the price. Tell the buyer the Loan Estimate from their lender within 3 days is the real number – this is just the ballpark.
What goes into a buyer’s estimate vs a seller’s?
| Cost bucket | Buyer side | Seller side |
|---|---|---|
| Lender / origination fees | $1,600-$3,200 (0.5-1% of loan) | None |
| Title insurance | $960-$1,920 (lender policy) | $1,200-$2,400 (owner policy) |
| Escrow & settlement | $600-$1,200 | $500-$1,000 |
| Prepaids (interest, tax, insurance) | $5,688-$8,388 | None |
| Transfer tax | Usually none | $400-$8,000 (state-driven) |
| Agent commission | None | $22,000 at 5.5% |
| Recording fees | $100-$300 | $50-$200 |
| Total estimate | $9,598-$16,258 | $2,150-$12,100 + commission |
Frequently Asked Questions
How much are closing costs for a buyer?
Buyer closing costs typically run 2–5% of the purchase price: loan origination and underwriting, appraisal, title insurance, escrow fees, and prepaid taxes and insurance. On a $400,000 purchase, expect roughly $8,000–20,000 on top of the down payment.
How much are closing costs for a seller?
Seller costs usually total 6–9% of the sale price, dominated by agent commissions (5–6%) plus title fees, transfer taxes, and prorations. On a $400,000 sale, that’s roughly $24,000–36,000 before mortgage payoff.
What are prepaids and why are they part of cash to close?
Prepaids are homeowner costs paid in advance at closing — typically 6–12 months of homeowners insurance, 2–6 months of property taxes into escrow, and prepaid interest to the end of the closing month. They’re not lender fees, but they’re real cash the buyer must bring.
Can closing costs be negotiated or rolled into the loan?
Partly. Buyers can negotiate seller credits (capped by loan type at 3–9% of price), shop title and lender fees, or accept a higher rate for lender credits. Rolling costs into the loan is generally only available on refinances, not purchases.
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