US Closing Cost Calculator: Home Buyer and Seller Fees

US closing costs: how buyer and seller costs are calculated

In the US, closing costs on a home purchase bundle lender fees, title insurance, settlement fees, recording and transfer taxes and escrow reserves; buyers often pay 2 to 5% of the price. On the seller side, agent commission dominates. With the default values, the tool finds $12,420 in costs for a $425,000 purchase (2.92%).

Buyer side

Loan = price − down payment. The tool adds four blocks:

• Lender: origination (% of loan) + discount points (% of loan, 0 by default) + appraisal + credit and flood report ($125).
• Title and settlement: lender and owner title insurance, closing fee, inspection.
• Government: recording and transfer taxes, an amount you enter ($1,400 by default).
• Prepaids and escrow: 12 months of homeowners insurance, 3 months of property tax and 2 months of insurance in reserve (both month counts editable), and 15 days of interest at a fixed 6.8%.

Default example

$425,000 home, 20% down ($85,000), $340,000 loan: lender $3,495 (including $2,720 origination at 0.8%), title and settlement $3,200, taxes $1,400, prepaids $4,325 (including $950 of prepaid interest). Total: $12,420, 2.92% of the price; cash to close: $97,420.

Seller side

Net proceeds = price − commission (5% by default) − transfer tax (1%) − attorney or title fee − mortgage payoff. Example: 425,000 − 21,250 − 4,250 − 800 − 180,000 = $218,700.

Limits

Four items stay fixed: owner title ($850), closing ($750), inspection ($450), credit and flood report ($125); all others can be edited. They are ballpark figures, not schedules: transfer taxes vary by state and county, and commissions are negotiable. The 6.8% rate for prepaid interest is hard-coded, whatever your actual rate. Seller credits and property tax prorations are not modelled. For a purchase in France, use the notary fees calculator. This is an estimate and does not replace the lender's Closing Disclosure.

Frequently Asked Questions

How much are closing costs for a buyer in the US?

With the tool's default values, a $425,000 purchase with 20% down generates $12,420 in costs, or 2.92% of the price. The usual range is 2 to 5% depending on the state, the lender and the escrow reserves.

What are prepaids and escrow reserves?

They are amounts paid in advance at closing: the tool counts one year of homeowners insurance and, by default, 3 months of property tax and 2 months of insurance in reserve (editable), plus 15 days of interest. In the default example they come to $4,325, the largest buyer item.

How much does a seller actually net at closing?

The tool deducts agent commission, transfer tax, attorney or title fee and the mortgage payoff from the price. For $425,000 with 5% commission, 1% tax, $800 in fees and $180,000 still owed, the seller nets $218,700.

Does the down payment change closing costs?

Slightly: origination and prepaid interest follow the loan amount. With 10% down instead of 20% on $425,000, the tool goes from $12,420 to $12,879 in costs, but cash to close falls from $97,420 to $55,379.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.