How to use this calculator
Start by selecting whether you are the buyer or seller, then enter the home price. Buyers can adjust the down payment percentage and loan amount, while sellers can set the agent commission rate. Select your state to get an estimated transfer tax based on statewide rates.
The calculator provides an itemized breakdown of each cost along with the total closing costs and percentage of the home price. For buyers, it also shows the total cash needed at closing, which includes both the down payment and closing costs.
Typical closing costs at a glance
| Cost Item | Typical Range | Paid By |
|---|---|---|
| Loan origination fee | 0.5 to 1% of loan | Buyer |
| Appraisal fee | $300 to $600 | Buyer |
| Home inspection | $300 to $500 | Buyer |
| Title insurance | 0.3 to 0.5% of price | Both |
| Escrow / settlement fees | $1,000 to $2,000 | Both |
| Agent commission | 5 to 6% of price | Seller |
| Transfer taxes | Varies by state | Varies |
| Recording fees | $50 to $250 | Both |
| Attorney fees | $500 to $1,500 | Both |
| Prepaid taxes & insurance | $2,000 to $5,000 | Buyer |
Frequently asked questions
How much are closing costs for a home buyer?
Buyer closing costs typically range from 2% to 5% of the home purchase price. On a $400,000 home, that means $8,000 to $20,000 in closing costs on top of your down payment. Costs include loan origination fees, appraisal, title insurance, escrow fees, prepaid taxes, and homeowner's insurance.
How much are closing costs for a home seller?
Seller closing costs typically range from 6% to 10% of the sale price, with the largest expense being the real estate agent commission (usually 5 to 6%). Other seller costs include transfer taxes, title insurance, attorney fees, and prorated property taxes.
Can you negotiate closing costs?
Yes, many closing costs are negotiable. Buyers can ask the seller for concessions to cover a portion of closing costs, shop around for title and settlement services, and negotiate lender fees. Sellers can negotiate agent commission rates and sometimes ask the buyer to cover certain transfer taxes.
What is the difference between closing costs and a down payment?
A down payment is the portion of the home price you pay upfront (typically 3 to 20%), which goes toward your home equity. Closing costs are separate fees charged by lenders, title companies, and government agencies to process and finalize the transaction. Both are due at closing, but they serve different purposes.
What are transfer taxes?
Transfer taxes are state and local government taxes charged when property ownership changes hands. Rates vary significantly by state, some states charge no transfer tax, while others charge up to 4%. Who pays the transfer tax (buyer or seller) also varies by local custom.