Closing Cost Calculator: What Buyers and Sellers Pay at Closing
Estimate closing costs for buyers and sellers. Covers loan fees, title costs, prepaid items, transfer taxes, and agent commissions — with typical cost ranges by state and transaction type.
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How Much Are Closing Costs?
Closing costs typically range from 2–5% of the purchase price for buyers and 6–10% for sellers (including agent commissions). On a $350,000 home:
- Buyer closing costs: $7,000–$17,500
- Seller closing costs: $21,000–$35,000
These vary significantly by state, lender, loan type, and negotiation — but the categories are predictable.
Buyer Closing Costs
Loan Origination Fees: - Origination fee: 0.5–1% of loan amount - Discount points (optional): 1% per point to buy down rate - Application fee: $0–$500
Third-Party Fees: - Appraisal: $400–$800 (higher for multi-unit or rural) - Home inspection: $300–$600 (separate from closing but paid upfront) - Credit report: $20–$50 - Survey: $200–$700
Title and Settlement: - Title search and title insurance (buyer's policy): $500–$1,500 - Attorney or escrow/settlement fee: $500–$1,500 - Recording fees: $50–$250
Prepaid Items (not fees — money held in escrow): - Homeowner's insurance (first year premium): $800–$2,500 - Mortgage interest (prorated from closing to end of month): varies - Property tax escrow (2–6 months): varies - Insurance escrow (2–3 months): varies
Government Fees: - Transfer taxes (buyer's portion in some states): 0.1–2% of price
Seller Closing Costs
Sellers typically pay more in closing costs than buyers because of agent commissions:
State-by-State Variation: Transfer Taxes
Transfer taxes (real estate excise tax) vary enormously by state and can be a major closing cost:
In high-tax states, transfer taxes alone can be $5,000–$15,000 on a mid-price home.
Loan Type and Closing Cost Differences
How to Reduce Closing Costs
Negotiate seller concessions: Buyers can ask sellers to contribute toward closing costs — common in buyer-favorable markets. Seller credits are capped by loan type (3–9% depending on LTV and loan program).
Lender credits: Accept a slightly higher interest rate in exchange for lender credits that reduce closing costs. Good option if you plan to sell or refinance within 3–5 years.
Shop title and settlement services: On conventional loans, buyers can shop for title insurance, settlement agents, and surveys. The Loan Estimate you receive within 3 business days of application identifies which services you can shop.
Close at the end of the month: Reduces the prepaid interest line item (you pay interest from closing date to month-end). Closing on the 28th saves more on prepaid interest than closing on the 5th.
Related Guides
- How to Use the ADU Financing CalculatorLearn how to use the ADU Financing Calculator, check its formula and interpret the result.
- BRRRR Calculator: How to Analyze a Buy, Rehab, Rent, Refinance, Repeat DealCalculate BRRRR deal returns: how much capital you can recycle after refinancing, what ARV you need, and whether the deal meets your return thresholds.
- Cap Rate Calculator: What Capitalization Rate Means for InvestorsCalculate cap rate for any rental property. Understand what cap rate means, how it compares to other return metrics, what cap rates look like by market and property type, and its limitations.
- Rental Property Cash Flow: How to Calculate Monthly Net Cash FlowCalculate monthly and annual cash flow for any rental property. Covers gross rent, all expense categories, debt service, and what positive cash flow benchmarks look like by property type.
Frequently Asked Questions
- How much are typical closing costs for a home buyer?
- Buyer closing costs typically run 2–5% of the purchase price. On a $350,000 home: $7,000–$17,500. This includes loan origination fees, appraisal, title insurance, prepaid insurance and property taxes for escrow, and various government recording fees.
- What do sellers typically pay in closing costs?
- Sellers typically pay 6–10% of the sale price including agent commissions (5–6%), transfer taxes, title insurance (owner's policy), and prorated property taxes. On a $400,000 sale: $24,000–$40,000 in total seller costs. The agent commission is by far the largest component.
- Can closing costs be rolled into the mortgage?
- Yes, through two methods. You can finance closing costs by adding them to the loan amount (if the lender allows and your LTV permits). Or you can accept lender credits — a slightly higher interest rate in exchange for credits that reduce upfront closing costs. You're not avoiding the costs; you're paying them over time via higher payments.
- What are prepaid closing costs?
- Prepaids are not fees — they're money you prepay into an escrow account. Common prepaids include homeowner's insurance (first year), property taxes (2–6 months into escrow), and mortgage interest from the closing date to the end of the month. Prepaids exist because lenders require escrow accounts for insurance and taxes.
- Can closing costs be negotiated?
- Yes. In a buyer's market, sellers often agree to pay a portion of buyer closing costs (seller concessions). Some lender fees are negotiable. You can shop for title insurance and settlement services on conventional loans. Closing near month-end reduces prepaid interest. VA and FHA loans cap certain fees that lenders can charge.
Last updated 7/28/2026