Mortgage Closing Cost Calculator
This mortgage closing cost calculator with prepaids and escrow breaks every fee into its own editable line, from lender charges and title insurance down to your prepaid interest and tax escrow reserve, plus an accurate estimate of FHA, VA, or USDA government loan fees if you’re using one of those programs. For your full monthly payment, see the full Mortgage Calculator.
Skip straight to the calculator ↓Your Purchase & Loan Details
Adjust Your Closing Cost Estimates
Every default below is a reasonable national estimate. Adjust anything you already have real numbers for from your Loan Estimate.
Your Total Closing Costs
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Enter your details above to see your full closing cost estimate.
Itemized Breakdown
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What’s Actually Included in Closing Costs
Closing costs on a home purchase typically run 2% to 5% of the loan amount, but that range hides a lot of moving parts. This calculator breaks it into the four buckets lenders actually use on a Loan Estimate: lender fees you pay for the loan itself, third-party fees for services like the appraisal and title work, government fees like recording charges and transfer tax, and prepaid items that fund your escrow account and cover interest between closing and your first payment. Adjusting any line above updates the total and the breakdown chart immediately.
Why Prepaid Interest Depends on Your Closing Date
When you close, you owe interest on your new loan from the closing date through the end of that month, since mortgage payments are paid in arrears. Close early in the month and you’ll prepay closer to a full month of interest; close near the end and you’ll prepay just a few days. This calculator computes that figure directly from your loan amount, rate, and the number of days you enter, rather than using a flat placeholder.
FHA, VA, and USDA Government Fees, Calculated Correctly
Government-backed loans each carry their own upfront fee, and it’s easy to get wrong if you’re estimating by hand. FHA charges a flat 1.75% upfront mortgage insurance premium on the loan amount. VA loans charge a funding fee that depends on your down payment and whether it’s your first time using the benefit: 2.15% at 0% down for first use (3.3% for subsequent use), dropping to 1.5% at 5% to 9.99% down, and 1.25% at 10% or more down, regardless of prior use. Veterans with a service-connected disability rating of 10% or more are fully exempt. USDA loans charge a 1% upfront guarantee fee. This calculator applies the correct figure automatically once you select your loan type above.
Escrow Reserves Aren’t a Fee, They’re a Deposit
The tax and insurance reserve lines aren’t charges, they’re prepaid deposits into your escrow account so your servicer has a cushion before your regular monthly escrow payments catch up. Lenders typically collect two to six months of insurance and property tax reserves at closing, depending on your closing date and how your state and lender structure escrow accounts. This money isn’t lost, it’s simply paid early into an account that will cover your actual tax and insurance bills going forward.
How to Actually Lower Your Closing Costs
A few real levers exist: negotiating a seller credit toward closing costs as part of your offer, asking your lender about a lender credit in exchange for a slightly higher interest rate, shopping title insurance and other third-party services where your state allows it, and timing your closing date near the end of the month to minimize prepaid interest. None of these change the underlying value of the loan, but they can meaningfully change how much cash you need on closing day.
Frequently Asked Questions
How much are closing costs on a house?
Typically 2% to 5% of the loan amount, though the exact figure depends heavily on your lender, location, loan type, and how much prepaid interest and escrow reserve your specific closing date requires.
What is included in closing costs?
Lender fees like origination and underwriting charges, third-party fees like the appraisal and title insurance, government fees like recording charges and transfer tax, and prepaid items like escrow reserves and prepaid interest.
What is the FHA upfront mortgage insurance premium?
A flat 1.75% of the loan amount, charged upfront and either paid in cash at closing or financed into the loan balance.
How much is the VA funding fee?
It depends on down payment and prior use: 2.15% at 0% down for first-time use (3.3% for subsequent use), 1.5% at 5% to 9.99% down, and 1.25% at 10% or more down. Veterans with a 10% or greater service-connected disability rating are exempt.
Can the seller pay my closing costs?
Often yes, through a negotiated seller credit as part of the purchase agreement, subject to limits that vary by loan type and down payment amount. This is a common negotiating point, especially in a buyer’s market.
Why do I have to pay prepaid interest at closing?
Because mortgage payments are paid in arrears, you owe interest from your closing date through the end of that month before your first regular payment begins, and that amount is collected at closing rather than added to your first bill.
Are escrow reserves a real cost or do I get that money back?
They’re a deposit, not a fee. The money funds your escrow account, which pays your actual property tax and insurance bills going forward. It isn’t lost, though it does add to the cash you need at the closing table.
References
- Consumer Financial Protection Bureau, Owning a Home resources – consumerfinance.gov/owning-a-home
- U.S. Department of Housing and Urban Development, homebuying guidance – hud.gov/topics/buying_a_home
Related DexoCalc Tools
This closing cost calculator is one piece of a wider mortgage planning toolkit on DexoCalc.
State Mortgage Calculators
Need your state’s specific property tax or transfer tax figure to plug into the fields above? These calculators use real local tax data:
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for the official Loan Estimate and Closing Disclosure your lender is required to provide. Actual closing costs vary by lender, location, and loan program; government loan fee rates reflect published 2026 program figures and can change.