Closing Costs Calculator
A down payment is not the only cash a purchase needs. Closing costs run alongside it, and buyers who budget only for the deposit are regularly short at the table.
Total closing costs
$7,500.00
- Loan amount
- $280,000.00
- Origination charge
- $2,800.00
- Title insurance
- $1,750.00
- Third-party fees
- $850.00
- Closing costs as a share of price
- 2.14%
- Cash needed at closing
- $77,500.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
closing costs = loan fees + title charges + third-party fees + prepaid escrow
- P
- Purchase price of the property
- D
- Down payment made at closing
- L
- Loan amount, equal to price minus down payment
- C
- Total closing costs on top of the down payment
How to check the result by hand
- 1
Subtract the deposit from the price
The loan is the price minus the down payment. Every lender percentage is charged against this number, not against the price, so a bigger deposit reduces the origination fee too.
- 2
Apply the origination percentage to the loan
Multiply the loan by the origination rate. A £280,000 loan at 1% is £2,800, and the fee falls to £560 if the deposit is raised to reduce the loan to £56,000.
- 3
Apply the title percentage to the price
Title insurance is usually priced on the full purchase value rather than the loan, so 0.5% of £350,000 is £1,750 regardless of how much is borrowed.
- 4
Add the fixed third-party fees
Appraisal, title search and recording fees are quoted as flat amounts. Taking them from the lender's loan estimate rather than guessing keeps the total honest.
- 5
Add the prepaid escrow and the deposit
Months of property tax and insurance collected at closing come next, and the down payment is added last to give the total cash the buyer has to bring.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Closing Costs page.