What is prepaid interest?

Prepaid interest is the interest owed from your closing date until your loan enters the next regular payment cycle. The exact amount depends on timing and rate.

Closing Costs Calculator (US) 2026 – Estimate Closing Costs + Cash to Close

Q: Are closing costs the same as the down payment?

No. The down payment is part of the purchase price you pay upfront. Closing costs are additional fees and prepaid items paid to finalize the transaction.

Q: Do transfer taxes vary by state?

Yes. Transfer taxes and recording charges vary by state and can also vary by county or city. This calculator keeps that estimate editable.

Q: Can seller credits reduce cash to close?

Yes. Seller and lender credits can offset closing costs, but rules may limit how much credit can be applied depending on loan type and down payment.

🧾 Closing Costs Estimator (Buyer Side)

🏷️ Home Price

🗺️ State (optional)

🏦 Loan Type

⬇️ Down Payment (%)

⬇️ Down Payment ($)

📈 Interest Rate (for prepaid interest)

🗓️ Prepaid Interest Days

🏛️ Annual Property Taxes (estimate)

🛡️ Annual Homeowners Insurance (estimate)

🏢 HOA (Monthly, optional)

🏦 Origination / Lender Fees (%) of loan

🎯 Discount Points (%) of loan (optional)

🧾 Title Insurance (%) of price

🏛️ Transfer/Recording Tax (%) of price

🤝 Earnest Money (credited at closing)

💳 Seller/Lender Credits (total)

🧮 Finance program fee into loan (if allowed)?

ℹ️ Note

Financing the program fee increases the loan amount and usually reduces cash-to-close.

⚠️ Important

Closing costs vary by lender, title company, county/city, and timing. This is an estimate to help you plan. If you have a Loan Estimate (LE), replace the default assumptions above with your exact numbers.

How Closing Costs Work (US) — What “Cash to Close” Really Means

Closing costs are the fees and prepaid items you pay to finalize a home purchase. They usually include lender fees, third-party services (like appraisal and title), government recording/transfer charges, and “prepaids” such as homeowners insurance and escrow reserves.

        Tip: Your lender’s Loan Estimate (LE) is the best source for exact numbers.
        This calculator helps you plan early — especially before you get the official LE.
      

What’s Included in This Calculator

Lender/loan costs: origination, underwriting/processing, appraisal, credit report.
Title & government fees: title insurance estimate, settlement/escrow, recording and transfer taxes (editable).
Prepaids: prepaid interest days, escrow reserves for taxes/insurance, optional HOA.
Program fees: FHA / VA / USDA fee estimates (optional finance into the loan).

Related Calculators

Loan Calculator – estimate monthly payment basics.
APR Calculator – understand true borrowing cost.
Percentage Calculator – down payment percent, fee % math, and quick checks.

Frequently Asked Questions

1) Are closing costs the same as the down payment?

No. Down payment is part of the purchase price you pay upfront. Closing costs are additional fees and prepaids.

2) Why do “prepaids” make cash-to-close higher?

Prepaids fund items like homeowners insurance and escrow reserves so your lender can pay bills on time after closing.

3) Do transfer taxes vary by state?

Yes — and sometimes by county/city too. That’s why this calculator keeps transfer tax editable.

4) What’s “prepaid interest”?

It’s interest from the closing date up to the start of your first mortgage payment period (varies by timing).

5) Can seller credits reduce cash to close?

Yes. Credits (and lender credits) can offset closing costs, but rules may limit how much credit you can use.

🏠 Closing Costs Calculator (US) — Estimate Closing Costs + Cash to Close