Closing Costs Calculator
Buying a $400,000 home with a $360,000 loan at 6.50% and closing on June 16, 2027? Closing costs come to $12,961.65, and you bring $52,961.65 to closing.
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Your cash to close
Cash to close
$52,961.65
Total closing costs (J)
$12,961.65
Loan costs (D)
$5,250.00
Other costs (I)
$7,711.65
You bring $52,961.65 to closing: the $40,000.00 down payment and $12,961.65 of closing costs.
Prepaid interest is $961.65: $64.11 a day on a 365-day year for the 15 days from June 16 through June 30.
The escrow deposit is $3,700.00, $750.00 less than the Loan Estimate's line-by-line $4,450: the aggregate adjustment leaves only the $1,100.00 cushion in the account at its lowest, in November 2027.
Your first payment, due August 1, 2027, is $2,275.44 of principal and interest plus $550.00 for escrow.
Your loan and closing costs
- $360,000.00 × 6.50% ÷ 365 ≈ $64.1096 → $64.11 a day
- prepaid interest = $64.11 × 15 days = $961.65
- escrow limit = $2,600.00 + cushion $1,100.00 = $3,700.00
- aggregate adjustment = $3,700.00 − $4,450.00 = −$750.00
- J = $5,250.00 + $7,711.65 − $0.00 = $12,961.65
- cash = $12,961.65 + $40,000.00 = $52,961.65
Your escrow balance after each monthly payment
The escrow deposit on each form by month of closing
Closing cost details, Sections A to J
| Line on the form | Loan Estimate | Closing Disclosure |
|---|---|---|
| A. Origination charges | $1,800 | $1,800.00 |
| B. Services you cannot shop for | $850 | $850.00 |
| C. Services you can shop for | $2,600 | $2,600.00 |
| D. Total loan costs | $5,250 | $5,250.00 |
| E. Recording fees and other taxes | $150 | $150.00 |
| E. Transfer taxes | $0 | $0.00 |
| F. Homeowner's insurance premium (12 months) | $1,800 | $1,800.00 |
| F. Mortgage insurance and other prepaids | $0 | $0.00 |
| F. Prepaid interest ($64.11 a day for 15 days) | $962 | $961.65 |
| F. Property taxes | $0 | $0.00 |
| G. Homeowner's insurance ($150.00 a month for 3 mo.) | $450 | $450.00 |
| G. Property taxes ($400.00 a month for 10 mo.) | $4,000 | $4,000.00 |
| G. Aggregate adjustment (subtracted; Closing Disclosure only) | $0 | $750.00 |
| H. Other | $1,100 | $1,100.00 |
| I. Total other costs | $8,462 | $7,711.65 |
| Lender credits (subtracted) | $0 | $0.00 |
| J. Total closing costs | $13,712 | $12,961.65 |
The Loan Estimate column rounds each line to the whole dollar and leaves out the aggregate adjustment, so its total closing costs are $13,712, $750.35 more than the Closing Disclosure's $12,961.65.
Calculating cash to close
| Line on the form | Loan Estimate | Closing Disclosure |
|---|---|---|
| Total closing costs (J) | $13,712 | $12,961.65 |
| Closing costs financed (subtracted) | $0 | $0.00 |
| Down payment/funds from borrower | $40,000 | $40,000.00 |
| Deposit (subtracted) | $0 | $0.00 |
| Funds for borrower (subtracted) | $0 | $0.00 |
| Seller credits (subtracted) | $0 | $0.00 |
| Cash to close, from you | $53,712 | $52,961.65 |
| Cash to close, to you | $0 | $0.00 |
How much each fee may rise by closing
| Group | What it holds | On your figures | Most at closing |
|---|---|---|---|
| Cannot increase | A, B and transfer taxes | $2,650.00 | $2,650.00 |
| Can increase 10% in total | Recording fees and C | $2,750.00 | $3,025.00 |
| Can increase by any amount | Prepaid interest, insurance and taxes, G, H | $7,561.65 | No limit |
Without a valid revision under 12 CFR 1026.19(e)(3)(iv), the $2,650.00 in the first group cannot rise, and the $2,750.00 in the second can rise to at most $3,025.00 in total. A revision covers only the increase caused by changed circumstances, your changes, locking an unlocked rate (points and lender credits), an expired estimate or reserved construction delays.
Your escrow account month by month
| Month | Payment | Paid in | Bills paid | Balance |
|---|---|---|---|---|
| At closing | 0 | $3,700.00 | $0.00 | $3,700.00 |
| August 2027 | 1 | $550.00 | $0.00 | $4,250.00 |
| September 2027 | 2 | $550.00 | $0.00 | $4,800.00 |
| October 2027 | 3 | $550.00 | $0.00 | $5,350.00 |
| November 2027 | 4 | $550.00 | $4,800.00 | $1,100.00 |
| December 2027 | 5 | $550.00 | $0.00 | $1,650.00 |
| January 2028 | 6 | $550.00 | $0.00 | $2,200.00 |
| February 2028 | 7 | $550.00 | $0.00 | $2,750.00 |
| March 2028 | 8 | $550.00 | $0.00 | $3,300.00 |
| April 2028 | 9 | $550.00 | $0.00 | $3,850.00 |
| May 2028 | 10 | $550.00 | $0.00 | $4,400.00 |
| June 2028 | 11 | $550.00 | $1,800.00 | $3,150.00 |
| July 2028 | 12 | $550.00 | $0.00 | $3,700.00 |
Each month adds $550.00, and the balance is lowest in November 2027, at $1,100.00.
Taxes and escrow at closing by month of closing
| Closing in | First payment | Taxes paid at closing (F) | Escrow, Loan Estimate (G) | Aggregate adjustment (subtracted) | Escrow, Closing Disclosure (G) |
|---|---|---|---|---|---|
| Jan | March 2027 | $0.00 | $2,450 | $800.00 | $1,650.00 |
| Feb | April 2027 | $0.00 | $2,850 | $1,200.00 | $1,650.00 |
| Mar | May 2027 | $0.00 | $3,250 | $1,200.00 | $2,050.00 |
| Apr | June 2027 | $0.00 | $3,650 | $1,050.00 | $2,600.00 |
| May | July 2027 | $0.00 | $4,050 | $900.00 | $3,150.00 |
| Jun (yours) | August 2027 | $0.00 | $4,450 | $750.00 | $3,700.00 |
| Jul | September 2027 | $0.00 | $4,850 | $600.00 | $4,250.00 |
| Aug | October 2027 | $0.00 | $5,250 | $450.00 | $4,800.00 |
| Sep | November 2027 | $0.00 | $5,650 | $300.00 | $5,350.00 |
| Oct | December 2027 | $4,800.00 | $1,250 | $150.00 | $1,100.00 |
| Nov | January 2028 | $4,800.00 | $1,650 | $0.00 | $1,650.00 |
| Dec | February 2028 | $0.00 | $2,050 | $400.00 | $1,650.00 |
On the Closing Disclosure, taxes paid at closing and the escrow deposit come to the least, $1,650.00, for a closing in January, February and December, and the most, $6,450.00, in November.
How mortgage closing costs add up
For most mortgages your costs arrive on two forms. A Loan Estimate comes within three business days of applying (12 CFR 1026.19(e)(1)(iii)). A Closing Disclosure comes at least three business days before closing (1026.19(f)(1)(ii)(A)). Both list the costs in the same lettered sections, set out in 12 CFR 1026.37 and 1026.38. Sections A, B and C are loan costs: what the lender charges, the services it picks for you, and the services you can shop for. Section D adds them up.
Sections E to H are other costs. E holds recording fees and transfer taxes, and F holds prepaids: insurance, interest and taxes paid ahead. G is the first deposit into your escrow account. H lists other costs you agreed to pay, such as an owner's title policy, homeowners association charges or an inspection. Section I adds E to H, and Section J is D plus I, less any lender credits. Regulation Z has the forms show lender credits "as a negative number with the label “Lender Credits”" (12 CFR 1026.37(g)(6)(ii)).
Cash to close is a different figure. The CFPB's Loan Estimate explainer says it "includes your down payment and closing costs, minus any deposit you have already paid to the seller, any amount the seller has agreed to pay toward your closing costs (seller credits), and other adjustments." So a deposit or a seller credit lowers the cash you bring but not Section J.
Transfer taxes depend on where the home is. Regulation Z's comment 37(g)(1)-4 says "State and local government transfer taxes are governed by State or local law, which determines if the seller or consumer is ultimately responsible for paying the transfer taxes." This page never guesses them: the field starts at $0, and you copy your own from Section E of the Loan Estimate. For some states FastCalc works them out, such as Florida's documentary stamp tax, the New York transfer tax and the New Jersey realty transfer fee.
Prepaid interest and the day you close
The CFPB's answer on prepaid interest describes it as interest "between the date you close on your mortgage loan and the period covered by your first monthly mortgage payment." Its Closing Disclosure explainer adds that Section F "includes interest on your loan between the time you close and the end of that month." So this page takes the daily interest, rounded to the cent, times the days from your closing day through the last day of that month. The CFPB's sample forms print it the same way, as so much per day for so many days.
On the default loan the daily interest is $64.11. Closing on June 1 means 30 days and $1,923.30. Closing on June 30 means 1 day and $64.11, which leaves you $1,859.19 more cash at closing. A lender that counts a 360-day year charges $65.00 a day, or $13.35 more over the 15 days. A lender may also cut the daily figure to the cent instead of rounding it. Regulation Z's comment 37(o)(4)(i)(A)-1 says $68.1254 a day may be shown "as $68.13 or $68.12."
A late closing has a cost of its own. The CFPB's page on shopping for closing services notes that "There may be more people trying to close near the end of the month," and suggests "scheduling your closing for the beginning or the middle of the month." Weigh the interest against a closing agent who is easier to book.
The escrow deposit and the aggregate adjustment
An escrow account pays your property tax and insurance bills. Each monthly payment adds a twelfth of the year's bills, and the deposit at closing covers the gap until the payments catch up. Regulation X sets the most a servicer may collect: enough that "the lowest month end target balance projected for the escrow account computation year is zero (-0-)", plus a cushion (12 CFR 1024.17(c)(1)(i)). The cushion can be no more than a sixth of the year's bills, which is two months of payments (1024.17(c)(5)).
This page works out each Loan Estimate line bill by bill. On the defaults, insurance takes 3 months of $150.00 and taxes 10 months of $400.00, $4,450 in all. The Closing Disclosure works out the account as a whole, where money saved for one bill can pay another. It ends Section G with an aggregate adjustment of −$750.00. Regulation Z's comment 37(g)(3)-2 says this adjustment "is not included on the Loan Estimate", so on the defaults the second form shows $750.00 less escrow at closing. Under the escrow analysis, when those lines do not exceed the 12 CFR 1024.17(d)(2) limit, the adjustment is $0.00. When the adjustment is $0.00, Section G differs between the forms only by the Loan Estimate's rounding.
Regulation X's Appendix E works the same steps on bills of $500, $360 and $700. It gets a $1,040 deposit for the account as a whole and $1,130 bill by bill. This page's escrow arithmetic gives those figures, and so a $90.00 adjustment.
Why the month you close changes the deposit
The escrow year starts with your first payment, so the month you close decides how long the account saves before each bill. Take the defaults, with one $4,800.00 tax bill in November. Taxes paid at closing and the escrow deposit come to $1,650.00 for a closing in January and $6,450.00 for one in November.
On those defaults the total grows by $550.00, a month of escrow payments, for each month later you close, from $2,050.00 in March to $6,450.00 in November. The later the closing, the fewer payments there are to save before the bill. In October and November the bill falls before your first payment, so you pay all of it at closing in Section F. Regulation Z's comment 37(g)(2)-1 lists among prepaids "Real estate property taxes due within 60 days after consummation of the transaction". A closing in December, January or February comes to $1,650.00. The table by month of closing above works this out for your bills.
Which fees can rise before closing
The CFPB's answer on final mortgage costs says "There are three categories of closing costs." It explains that some "the lender can increase by up to 10 percent" and some "the lender can’t increase at all." Those limits are in 12 CFR 1026.19(e)(3). Under 1026.19(e)(3)(iv) and comment 19(e)(3)(iv)-2, a revised Loan Estimate resets a fee's baseline only for the increase a valid reason actually caused. Four of the six reasons are a changed circumstance affecting charges, one affecting eligibility, changes you request, and locking an unlocked rate. The other two are proceeding after the 10-business-day offer expires (or a longer period set) and reserved revisions on new construction settling past 60 days.
Without one of those valid revisions, fees in Sections A and B and transfer taxes cannot rise. If your rate was not locked, points in Section A and lender credits can change when you lock it (1026.19(e)(3)(iv)(D)). Recording fees and Section C fees from a provider on the lender's list can rise 10% in total. They cannot rise at all if that provider is the lender's affiliate. Prepaid interest, insurance, property taxes, escrow and Section H can change by any amount. So can Section C when you pick a provider off the list. On the defaults, $2,650.00 cannot rise, and the $2,750.00 group can reach at most $3,025.00. A title company off the list moves its $2,600.00 into the open group and leaves $150.00 capped at $165.00.
Closing cost formulas
daily interest = loan × rate ÷ 365 (or 360, or 366 in a leap year), rounded to the cent prepaid interest = daily interest × days from the closing day through the month's last day escrow limit = −(lowest Step 1 balance) + cushion, cushion ≤ the year's bills ÷ 6 aggregate adjustment = escrow limit − the Section G lines, when that is below 0 D = A + B + C I = E + F + G + H J = D + I − lender credits cash to close, purchase = J − costs financed + down payment − funds for borrower − deposit − seller credits cash to close, refinance = J + payoffs − loan; below 0, you receive it A to J the form's sections · Step 1 balance: the escrow account's month-end balance before any deposit
Worked examples
Two tax bills a year. Keep the defaults but pay the $4,800.00 tax in two bills, in May and November. The escrow deposit falls to $1,650.00: $2,050 line by line on the Loan Estimate, less a $400.00 aggregate adjustment. Closing costs come to $10,911.65 and cash to close to $50,911.65.
Earnest money already paid. With a $10,000 deposit paid when you signed the contract, cash to close falls to $42,961.65. The deposit is money you have already put in, so Section J does not change.
A leap-year closing. Close on February 15, 2028 with a lender that counts 366 days in a leap year. The daily interest is $63.93, so 15 days cost $958.95. The escrow deposit is $1,650.00 after a $1,200.00 aggregate adjustment.
Check your Loan Estimate line by line
The table of Sections A to J above has a column for each form. The Loan Estimate rounds the amounts in Sections A to J and in its cash to close table to the whole dollar, except the daily interest and the monthly escrow amounts (12 CFR 1026.37(o)(4)(i)(A)). The price and the loan amount keep their cents, so the down payment is worked from them exactly and then rounded (comment 37(o)(4)-2). Its comment 37(o)(4)(i)(A)-1 shows $164.50 becoming $165, so this page rounds half up. Each subtotal adds the rounded lines, as the forms do. The Closing Disclosure shows exact amounts and adds the aggregate adjustment (12 CFR 1026.38(g)(3)). So on the defaults its Section J is $750.35 lower.
You can test the page on the CFPB's sample Loan Estimate H-24(B): a $162,000 loan at 3.875% on a $180,000 purchase. Enter its sections (6 months of insurance in Section F), its $10,000 deposit, a 360-day year, its 2 escrow months and a 15-day closing date. The page then gives Section J of $8,054 and cash to close of $16,054, the form's own figures. Prepaid interest is $17.44 a day, $262. Section G shows why subtotals add rounded lines. Its $202 and $211 make $413, while the exact $412.26 would round to $412. The first payment's $761.78 matches page 1, and the $206.13 of escrow rounds to page 1's $206.
Sample H-24(C) is a $211,000 loan at 4.00% on a $240,000 purchase, with no escrow account, a $10,000 deposit, a 360-day year and 15 days. Entering its sections gives $8,791 of closing costs and $27,791 to close. The refinance sample H-24(D) adds a $500 lender credit. As the form prints, D plus I is $5,599, Section J is $5,099, and $24,901 goes to the borrower. A refinance uses the cash-to-close table without a seller in 12 CFR 1026.37(h)(2).
When your closing works differently
A lender credit or a seller credit
Both lower the cash you bring, but only one lowers Section J. On the defaults, a $5,000 lender credit cuts Section J to $7,961.65. A $5,000 seller credit leaves it at $12,961.65 and comes off the cash to close instead. Either way you bring $47,961.65.
Each can cost you in another way. The CFPB's answer on lender credits says "You pay a higher interest rate and the lender gives you money to offset your closing costs." It adds that some lenders offer credits "unconnected to the interest rate you pay", such as a temporary offer. Its answer on closing fees warns that "the seller will usually require you to pay a higher price for the home in order to cover the costs of this credit." The mortgage points calculator weighs a rate change against cash now.
Rolling an upfront fee into a purchase loan
On a purchase the loan pays closing costs only when it is larger than the price. That happens with a financed upfront mortgage insurance premium or funding fee. Comment 37(h)(1)(ii)-1 limits the amount financed to the total closing costs. Say an $8,600.00 fee raises Section B to $9,450.00 and the loan to $408,600. Then $8,600.00 of the $21,691.40 in closing costs comes from the loan, and you bring $13,091.40. The FHA upfront and monthly MIP calculator and the VA funding fee calculator work out those fees.
If you are refinancing
A refinance has no seller, so cash to close is the closing costs and the payoff less the new loan. A $360,000 loan that pays off $300,000 and the default costs leaves $47,038.35 for you at closing. The costs then come out of the loan, and the CFPB's Closing Disclosure explainer points out that this "adds to your overall costs because of the added interest you will pay." The mortgage refinance calculator finds when a new loan pays back its costs.
A smaller escrow cushion, or no escrow account
Your loan papers can set a cushion below two months: 12 CFR 1024.17(c)(8) says "If any such documents provide for lower cushion limits, then the terms of the loan documents apply." On the defaults, a one-month cushion makes the escrow deposit $3,150.00, and no cushion $2,600.00. With no escrow account at all, Section G is $0.00 and closing costs fall to $9,261.65. You then pay each tax and insurance bill yourself. The initial escrow deposit calculator handles more than two bills a year.
Assumptions and limits
- The first payment is due on the first of the second month after closing, so prepaid interest runs from closing through the month's last day.
- Daily interest is the loan times the rate divided by the year's days, rounded half up to the cent. A lender that cuts it instead charges at most a cent a day less.
- With the escrow analysis, the next insurance premium, a full year's, is paid from escrow when the months paid at closing run out. Each tax bill falls on its month every year, and one due in your closing month or the next is paid in Section F.
- Each Section G line uses whole months of that bill's monthly amount to cover its deposit. A line can sit a few cents higher.
- Section G holds homeowner's insurance and property taxes only. Escrowed mortgage insurance, flood insurance or dues are left out.
- Prorated taxes, seller-paid charges and other adjustments in a Closing Disclosure's summaries of transactions are left out.
- The fee groups use the amounts as you enter them; Regulation Z's comment 19(e)(3)(i)-7 says to compare "unrounded numbers".
- Reverse mortgages, home equity lines of credit and some other loans come with other forms, which the CFPB's answer on prepaid interest lists.
- Prices and loans run from $1,000 to $100,000,000, and rates from 0% to 25% with up to three decimals. Terms run from 1 to 40 years and closing dates from 2010 to 2040. A purchase loan can be up to 110% of the price.
- The default fees, rate, taxes and insurance are examples, not quotes or averages.
These figures are estimates for learning and planning, not financial, tax, legal or investment advice. Terms of use.
What to do before you close
Check this page against your Loan Estimate. Enter its Sections A to H and your closing date; on the defaults its Section J would read $13,712. If yours differs by more than rounding, ask the lender which line differs. When the Closing Disclosure comes, the closing cost tolerance calculator checks each increase.
Shop for the services in Section C. The CFPB's page on shopping for closing services says research suggests borrowers who shop "could save as much as $500 on title services alone." Ask each provider on the lender's list for a quote, and compare the bottom-line total.
Plan your first payment: on the defaults, August 1, 2027 owes $2,275.44 principal and interest plus $550.00 escrow. This mortgage payment calculator link opens those defaults and adds mortgage insurance and dues. Under Related Calculators, the Mortgage Payment Calculator card opens with your inputs. On refinances or loans above price, that card uses your loan as price with no down payment or PMI; enter any mortgage insurance quoted.
Set the closing date with the Closing Disclosure in mind. You must receive it at least three business days before closing (12 CFR 1026.19(f)(1)(ii)(A)). For a June 16, 2027 closing, the closing disclosure waiting period calculator counts back those three business days.
Closing cost questions
How much are closing costs on a $400,000 house?
It depends on the loan, the lender and the state, so this page works from your own figures. With a $360,000 loan and the example fees, closing costs are $12,961.65, or 3.24% of the price. A 2% guess for the fees gives $13,661.65, because prepaids and escrow come on top.
What is the difference between closing costs and cash to close?
Closing costs are Section J: what the loan and the closing cost you. Cash to close also adds your down payment and takes off your deposit and seller credits. On a $400,000 purchase with $40,000.00 down and no deposit or seller credits, the two differ by exactly the down payment.
Does closing at the end of the month save money?
It lowers the cash you need at closing, because prepaid interest runs only to the month's end. On the default loan, closing on June 30 instead of June 1 cuts prepaid interest from $1,923.30 to $64.11. You also owe interest from a later date, so the saving is real.
Why is the escrow deposit lower on my Closing Disclosure than on my Loan Estimate?
The Closing Disclosure adds the aggregate adjustment, which the Loan Estimate leaves out. On the defaults Section G falls from $4,450 to $3,700.00. The adjustment is how much less the account as a whole needs than its lines add up to, under 12 CFR 1024.17(d)(2).
Can my closing costs go up after the Loan Estimate?
Some can, and 12 CFR 1026.19(e)(3)(iv) resets a limit only for the increase a valid revision actually causes (changed circumstances, your changes, locking an unlocked rate, expiration or reserved construction delays). Otherwise, fees in Sections A and B and transfer taxes cannot rise, though points and lender credits can change until rate lock. Recording fees and list-chosen Section C fees can rise 10% in total under 1026.19(e)(3)(ii). If they rise more, the lender must refund the excess within 60 days of closing under 1026.19(f)(2)(v); comment 19(f)(2)(v)-1 works an example that refunds $185.
Do lender credits cost more in the long run?
When they come with a higher rate, yes, though the CFPB's answer on lender credits notes that some lenders offer credits "unconnected to the interest rate you pay". Its example is a $180,000 loan: taking 5.125% instead of 5.00% brings $675 toward closing costs and $14 more each month. The mortgage points calculator finds how long the higher payments take to pass the credit.
Can I roll closing costs into my mortgage?
On a refinance, yes, up to the total closing costs: on the CFPB's sample H-24(D), $5,099 is paid from the loan. On a purchase, only a loan above the price can pay costs, as with a financed upfront fee. Either way, costs paid from the loan collect interest for as long as you owe it.
Sources
- Regulation Z, 12 CFR 1026.37, content of the Loan Estimate (CFPB text) (current version)
- Regulation Z, 12 CFR 1026.38, content of the Closing Disclosure (CFPB text) (current version)
- Regulation Z, 12 CFR 1026.19, good faith estimates and the final disclosures (CFPB text) (current version)
- Regulation X, 12 CFR 1024.17, escrow accounts (CFPB text) (current version)
- Regulation X, Appendix E to Part 1024, arithmetic steps of escrow analysis (CFPB text) (current version)
- CFPB, Sample Loan Estimate for a fixed-rate loan (form H-24(B)) (form dated Feb 7, 2014)
- CFPB, Sample Loan Estimate for an interest-only adjustable-rate loan (form H-24(C)) (form dated Feb 7, 2014)
- CFPB, Sample Loan Estimate for a refinance (form H-24(D)) (form dated Feb 7, 2014)
- CFPB, What fees or charges are paid when closing on a mortgage and who pays them? (page reviewed Sep 11, 2024)
- CFPB, What are prepaid interest charges? (page reviewed Apr 3, 2024)
- CFPB, How should I use lender credits and points (also called discount points)? (page reviewed Oct 19, 2023)
- CFPB, Can my final mortgage costs increase from what was on my Loan Estimate? (page reviewed Sep 11, 2024)
- CFPB, Loan Estimate explainer (page modified Oct 29, 2025)
- CFPB, Closing Disclosure explainer (page modified Oct 10, 2023)
- CFPB, Shop for title insurance and other closing services (page modified Dec 12, 2024)
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