Buyer Closing Costs Calculator

Cash to close is more than the down payment

The down payment and closing costs solve different problems. A down payment creates starting equity and reduces the loan. Closing costs pay for making, verifying, insuring, recording, and settling the transaction. Buyers usually need cash for both.

This calculator estimates:

cash to close = down payment + buyer closing costs − credits and deposits already paid

Credits can include negotiated seller or lender credits. Deposits already paid can include earnest money. Enter only amounts expected to appear as reductions on the transaction documents.

What the estimate includes

The calculator separates costs into practical groups:

• Lender fees: origination, underwriting, processing, or similar loan charges entered as a percentage of the loan.
• Discount points: optional upfront cost used to obtain a lower rate; one point equals 1% of the loan amount.
• Title and government fees: settlement, title services, recording, and transfer-related charges.
• Appraisal and inspections: property valuation and condition checks.
• Prepaids and initial escrow: prepaid interest, insurance, and reserves for future tax or insurance bills.

Local taxes, attorney fees, surveys, association charges, and loan-program fees can add other line items.

Worked example

For a $400,000 home with 20% down, the down payment is $80,000 and the loan starts at $320,000. Suppose lender fees are 1% of the loan, title and government charges are $3,500, appraisal and inspections total $1,200, and prepaids plus initial escrow are $4,000.

Modeled closing costs total $11,900 before any discount points. If seller credits and earnest money total $5,000, estimated cash to close is $86,900: the $80,000 down payment plus $11,900 of costs minus $5,000 already covered.

The exact amounts depend on property, location, lender, loan program, closing date, insurance, taxes, and negotiated terms.

Loan Estimate versus Closing Disclosure

The Loan Estimate provides an early standardized estimate of loan terms and closing costs. The Closing Disclosure shows the final transaction figures. Compare them line by line rather than looking only at the cash-to-close total.

Check whether the rate, points, loan amount, lender credits, projected payment, and escrow choice match what was expected. Ask about an unexplained change before closing day.

Discount points need a time horizon

Points increase cash due today in exchange for a lower interest rate. They do not automatically save money. The monthly reduction must have enough time to recover the upfront cost. Use the mortgage points calculator to estimate that break-even month.

Common mistakes

1. Saving only the down payment. Transaction costs and reserves need separate cash.
2. Counting earnest money twice. If already paid and credited at closing, enter it as a reduction—not another new cost.
3. Ignoring prepaids. They may not be lender fees, but they still affect cash due.
4. Assuming credits are free. A lender credit can be tied to a higher rate, and a seller credit may be part of the negotiated price.
5. Wiring from an unverified email. Confirm transfer instructions through a trusted phone number because real-estate wire fraud can imitate settlement communications.

Use the mortgage calculator for the complete monthly payment and the down payment and PMI calculator to compare upfront cash with ongoing mortgage insurance.