More fees, prepaids and creditsCredit report, underwriting, inspection, recording, transfer tax, insurance, escrow months
See closing cost summary
Buyers usually pay 2% to 5% of the purchase price at closing, on top of the down payment. On a $400,000 home that is $8,000 to $20,000. The bill mixes lender charges such as the origination fee (often 0.5% to 1% of the loan), the appraisal and credit report, title insurance and the escrow fee, county recording and any transfer tax, plus prepaid interest, the first year of home insurance and an escrow deposit for taxes. Add those costs to your down payment and take away any seller credits to get the cash you bring.
How to calculate buyer closing costs
Add every lender, title, government and prepaid charge. This closing cost calculator for buyers then adds the down payment and subtracts seller credits.
How this buyer closing cost calculator works
| Itemize my costs your own fee list | Quick state estimate before you have a quote | |
|---|---|---|
| Loan amount | Purchase price minus the down payment | Same |
| Lender fees | Loan × (origination % + points %) + appraisal, credit, underwriting fees | Price × your state's average closing cost share |
| Title, escrow, government | Title policies, escrow or attorney, recording, price × transfer tax % | |
| Prepaids | Loan × rate ÷ 360 × days + first year insurance + escrow cushion | Left out; add them on the Itemize tab |
| Result | Rows above + any upfront loan fee paid in cash. Cash to close adds the down payment, less seller credits | State average + upfront fee paid in cash, same cash step |
Worked example: a $400,000 home in Texas, 10% down, conventional loan at 7.28%
When to use this buyer closing cost calculator
Open it whenever a fee, a rate or a closing date could change the check you bring to the title office.
- Budgeting cash before you make an offer: the down payment is only part of the money due. Run the full list so savings and any gift funds are lined up before the contract has a deadline attached.
- Comparing lender offers: type each lender's origination fee and points and watch the total move.
- Estimating tax and insurance reserves: the escrow deposit and first year premium often surprise buyers, so set the cushion months and your tax bill to see that slice on its own.
- Checking a Loan Estimate line by line: enter what the lender sent and use the state average as a sanity check.
- Explaining costs to clients: agents and loan officers can print the summary or send a link that reopens the same numbers. A buyer who sees the breakdown early asks fewer panicked questions during the final week.
- Preparing to negotiate seller credits: enter the amount you plan to ask the seller to cover and see how much less cash you need. This closing cost calculator for buyers keeps the credit separate, so you can show the seller exactly which costs it pays.
- Choosing between loan types: switch between conventional, FHA, VA and USDA to compare upfront fees.
- Picking a closing date: fewer days left in the month means less prepaid interest due at signing.
What closing costs does a buyer pay?
Expect 2% to 5% of the purchase price in total. Use these ranges to judge whether each line on your Loan Estimate is in the normal zone or worth questioning.
| Fee | Typical cost | What it pays for |
|---|---|---|
| Loan origination fee | 0.5% to 1% of the loan | Processing your loan; it may already include underwriting. |
| Discount points | 0% to 1% of the loan | Optional. You pay up front for a lower rate. |
| Underwriting fee | $300 to $750 | Reviewing and approving the loan file. Some lenders also charge an application fee of $200 to $500+. |
| Credit report | About $35 | Pulling your credit history; some lenders charge $10, others $100. |
| Appraisal | $300 to $1,000+ | Confirms the home is worth the price you agreed. |
| Home inspection | $300 to $500 | Not required, but well worth it before you commit. |
| Title insurance | 0.5% to 1% of the loan | The lender's policy covers the lender against title claims. An owner's policy, which covers you, is optional. |
| Escrow or settlement fee | $350 to $1,000+ | The company holding funds and documents. |
| Attorney fee | $400+ | Only in states that require an attorney at closing. |
| Recording fee | $20 to $250 | County charge to record the deed and mortgage. |
| Other services | $15 to $400+ each | Flood check $15 to $25, courier about $30, document prep $50, notary $100, survey $400+ where needed. |
| Prepaid taxes and insurance | $1,000 to $4,500+ | The first months of property tax and the home insurance policy. |
How much are buyer closing costs in my state?
The U.S. average is $4,661 with recording fees and taxes, about 1.6% of a $438,236 average sale. State averages run from $1,551 in South Dakota to $17,545 in Washington, D.C.
Average purchase closing costs by state
| State | Average closing costs | Share of average sale price | Same share on $400,000 |
|---|---|---|---|
| Alabama | $2,791 | 0.89% | $3,560 |
| Alaska | $3,683 | 0.54% | $2,160 |
| Arizona | $3,574 | 0.76% | $3,040 |
| Arkansas | $2,440 | 0.84% | $3,360 |
| California | $5,962 | 0.74% | $2,960 |
| Colorado | $3,479 | 0.59% | $2,360 |
| Connecticut | $4,249 | 0.93% | $3,720 |
| Delaware | $12,157 | 2.99% | $11,960 |
| District of Columbia | $17,545 | 2.39% | $9,560 |
| Florida | $8,492 | 1.82% | $7,280 |
| Georgia | $5,106 | 1.24% | $4,960 |
| Hawaii | $5,921 | 0.62% | $2,480 |
| Idaho | $3,497 | 0.70% | $2,800 |
| Illinois | $4,702 | 1.30% | $5,200 |
| Indiana | $1,810 | 0.70% | $2,800 |
| Iowa | $1,640 | 0.64% | $2,560 |
| Kansas | $2,369 | 0.80% | $3,200 |
| Kentucky | $2,475 | 0.91% | $3,640 |
| Louisiana | $3,513 | 1.20% | $4,800 |
| Maine | $3,437 | 0.88% | $3,520 |
| Maryland | $9,218 | 2.03% | $8,120 |
| Massachusetts | $5,112 | 0.81% | $3,240 |
| Michigan | $4,138 | 1.08% | $4,320 |
| Minnesota | $3,492 | 0.91% | $3,640 |
| Mississippi | $2,332 | 0.98% | $3,920 |
| Missouri | $1,740 | 0.60% | $2,400 |
| Montana | $3,157 | 0.60% | $2,400 |
| Nebraska | $2,344 | 0.74% | $2,960 |
| Nevada | $4,157 | 0.84% | $3,360 |
| New Hampshire | $7,034 | 1.34% | $5,360 |
| New Jersey | $5,410 | 0.92% | $3,680 |
| New Mexico | $3,011 | 0.84% | $3,360 |
| New York | $13,738 | 2.47% | $9,880 |
| North Carolina | $2,480 | 0.56% | $2,240 |
| North Dakota | $2,243 | 0.69% | $2,760 |
| Ohio | $3,394 | 1.07% | $4,280 |
| Oklahoma | $2,896 | 1.08% | $4,320 |
| Oregon | $3,207 | 0.67% | $2,680 |
| Pennsylvania | $8,259 | 2.36% | $9,440 |
| Rhode Island | $3,810 | 0.75% | $3,000 |
| South Carolina | $2,883 | 0.65% | $2,600 |
| South Dakota | $1,551 | 0.46% | $1,840 |
| Tennessee | $5,063 | 1.18% | $4,720 |
| Texas | $3,713 | 0.93% | $3,720 |
| Utah | $3,997 | 0.72% | $2,880 |
| Vermont | $8,597 | 2.20% | $8,800 |
| Virginia | $6,817 | 1.36% | $5,440 |
| Washington | $5,995 | 1.01% | $4,040 |
| West Virginia | $3,272 | 1.14% | $4,560 |
| Wisconsin | $2,741 | 0.76% | $3,040 |
| Wyoming | $3,070 | 0.76% | $3,040 |
Averages include recording fees and transfer taxes. That pushes New York toward the top, since several of its counties carry some of the highest transfer taxes in the country, while Missouri, Indiana and North Dakota charge no state transfer tax and land near the bottom.
What upfront fees come with FHA, VA and USDA loans?
FHA adds 1.75% of the loan up front, USDA adds 1%, and the VA funding fee runs from 1.25% to 3.3% based on your down payment and whether you have used the benefit before.
| Loan and down payment | Upfront fee | On a $360,000 loan |
|---|---|---|
| Conventional, any down payment | None | $0 |
| FHA | 1.75% | $6,300 |
| USDA | 1% | $3,600 |
| VA first use, under 5% down | 2.15% | $7,740 |
| VA, 5% to under 10% down | 1.5% | $5,400 |
| VA, 10% or more down | 1.25% | $4,500 |
| VA used before, under 5% down | 3.3% | $11,880 |
Veterans may finance the VA fee as part of the loan, and some are exempt from it. Conventional borrowers putting down under 20% usually pay private mortgage insurance monthly, not at the closing table. Set the "Upfront loan fee is" box to match how your lender handles it.
How are prepaid interest and the escrow deposit worked out?
Prepaid interest covers the days between closing and the end of that month. The lender also collects the first year of home insurance and a cushion of up to two months of tax and insurance for the escrow account.
Prepaid interest on a $360,000 loan at 7.28%, closing with 15 days left in the month
Escrow cushion on $3,600 of yearly tax and $2,110 of insurance
The tax bill starts at 0.9% of the price, the national effective rate on single family homes in 2025, and insurance at $2,110 a year, the U.S. average premium. Replace both with your own tax record and insurance quote. Closing near the end of a month shrinks the interest line, though the first mortgage payment arrives sooner.
New buyers find problems during escrow. The pro who picks up books the fix.
Between the inspection report and closing day, a buyer has a short list and a deadline: a cracked heat exchanger, a leaking water heater, missing shingles, a panel the inspector flagged. They call down the list until someone answers. ServiceAgent answers for your inspection, HVAC, plumbing or roofing business around the clock, quotes your own prices and books the visit while the buyer is still on the line. You keep the repair, and you keep a new homeowner for years of service calls.
Book a free demoFrequently asked questions
Straight answers on what buyers pay at closing, how much to set aside and who can cover part of it.
Book a free demoHow accurate is this buyer closing cost calculator?
It is as close as the figures you put in. The defaults are typical published amounts, so swap them for the numbers on your Loan Estimate as soon as you have one. Your final Closing Disclosure sets the exact amount, and local fees, the closing date and your insurance quote can all move it.
What fees make up buyer closing costs?
Lender charges (origination, points, appraisal, credit report, underwriting), title and escrow charges (lender's and owner's title insurance, the escrow or attorney fee), government charges (recording and, in some areas, transfer tax), outside services such as inspection and flood certification, and prepaid items: interest to month end, the first year of home insurance and an escrow deposit for taxes and insurance.
What percentage of the home price are closing costs for a buyer?
Usually 2% to 5% of the purchase price. State averages for fees and taxes alone range from 0.46% of the sale price in South Dakota to 2.99% in Delaware, and prepaid interest, insurance and escrow come on top of that.
How much are closing costs on a $300,000 or $400,000 house?
At 2% to 5%, a buyer pays roughly $6,000 to $15,000 on a $300,000 home and $8,000 to $20,000 on a $400,000 home. The worked example above, a $400,000 Texas purchase with 10% down, comes to $9,414, or 2.35% of the price.
Is 10% closing cost normal?
No. Buyer costs normally land between 2% and 5% of the price, and no state average for fees and taxes reaches 3%. If an estimate is near 10%, look for discount points, a large upfront loan fee paid in cash or a duplicated charge.
Does this calculator include escrow reserves?
Yes. It adds the first year of home insurance plus an escrow deposit equal to your yearly tax and insurance divided by 12, times the cushion months you choose. Federal rules cap the cushion at two months of escrow payments.
Can I ask the seller to pay closing costs?
Yes, as a seller credit written into the offer. The loan sets a ceiling: VA allows seller concessions up to 4% of the home's reasonable value, FHA caps them at 6% of the lower of the price or appraised value, and a conventional loan with at least 25% down allows up to 9%. Enter the credit in the calculator to see the cash you save.
Does this include PMI?
Upfront fees for FHA, VA and USDA loans are included, and you choose whether they are paid at closing or added to the loan. Private mortgage insurance on a conventional loan is normally a monthly charge, so it belongs in the monthly payment from the mortgage calculator rather than in closing costs.
Are buyer closing costs tax deductible?
Discount points are treated as prepaid interest, and points that meet IRS criteria can be deducted as home mortgage interest. Rules for other fees differ, so check them with a tax professional before you file.
How does this fit into a home service business workflow?
It fits on the contractor side of a sale. Buyers in escrow phone inspectors, plumbers, roofers and HVAC techs about whatever the inspection report lists, and ServiceAgent, an AI phone agent built for home service companies, answers each of those calls, gives your prices and puts the visit on the calendar.
Leads growth and product marketing for ServiceAgent at SaaS Labs, where he has worked in product marketing since 2020. Writes ServiceAgent's coverage of AI call answering, CRM and home services operations.
Published by ServiceAgent, the AI front office for home service teams. Figures are planning estimates. Fees vary by lender, county and closing date, so rely on your Loan Estimate and final Closing Disclosure, and confirm local taxes with your title company, escrow agent or attorney.