Gypes

Home purchase cash planning

Mortgage closing costs calculator

Build an itemized buyer estimate, then separate closing costs from the down payment and the amount still needed at closing.

Copy each amount from the latest Loan Estimate or Closing Disclosure where possible. Gray placeholders are examples only and are not used until you enter a value. Optional lines start at zero so the calculator does not invent costs or credits for you.

1Set the purchase and loan amount

The down payment determines the base loan used to calculate discount points.

2Copy lender and required-service charges

Use Loan Estimate Sections A and B. Keep points as a percentage because the calculator converts them using the base loan.

3Copy shoppable, government, and other costs

Use Loan Estimate Sections C and E, then add only a buyer-paid cost not already counted in another field.

4Add prepaids and escrow

These increase cash due at closing but are not the same as lender or settlement fees.

5Apply lender and seller credits

Copy only credits shown in the current offer or disclosure; they reduce cash due but do not automatically reduce the price or base loan.

6Account for money already paid or financed

The deposit and financed costs reduce cash still due. Use the adjustment line only for an item not counted elsewhere.

How the cash-to-close estimate works

The calculator starts with purchase price and down payment to estimate a base mortgage amount. It adds origination charges, discount points, required services, shoppable services, government fees, prepaids, initial escrow, and other entered costs. Lender credits, seller or other credits, the deposit already paid, and costs added to the loan reduce the amount still needed at closing. Positive or negative adjustments are applied last.

Closing costs and cash to close are different

The Consumer Financial Protection Bureau defines closing costs as upfront costs associated with the mortgage and real-estate transaction, excluding the down payment. Cash to close is the amount still payable at closing after accounting for the down payment, costs, deposit, credits, financed costs, and applicable adjustments. The result therefore reports gross closing costs and cash to close separately. Review the CFPB Closing Disclosure explainer.

Use the Loan Estimate categories

Enter charges from an actual Loan Estimate whenever possible. Origination charges and services you cannot shop for are different from services for which you can select a provider. Taxes and government fees, prepaids, initial escrow, and other costs appear in their own categories. Keeping those groups separate makes it easier to compare offers and identify a changed charge instead of relying on one percentage assumption.

Discount points depend on the loan amount

This model calculates points as a percentage of purchase price minus down payment, before adding financed closing costs. Points are an upfront charge associated with a rate choice; they are not the same as the down payment or principal. Use the Mortgage Points Calculator to compare the point cost with payment and balance savings over the period you expect to keep the loan.

Credits reduce cash but can involve a tradeoff

A lender credit can offset upfront closing costs and may be associated with a higher interest rate. A seller credit is an agreed contribution from the seller and may be general or tied to specific charges. Enter only amounts reflected in the transaction documents. Credits do not automatically reduce the purchase price or mortgage principal in this model.

A deposit is already-paid buyer money

The deposit lowers the amount still due at closing, but it remains part of the buyer’s total funds through closing. That is why the result adds the deposit back when reporting net buyer funds through closing. If the deposit is refundable, disputed, or applied differently under the contract, use the amount shown in the current estimate or disclosure.

Financing costs raises the loan balance

Costs added to the loan lower immediate cash to close but increase the estimated mortgage balance and loan-to-value ratio. Product rules determine which charges may be financed, and financing can affect approval, mortgage insurance, interest, and program limits. The calculator prevents financed costs from exceeding the gross entered costs but does not decide whether a lender permits the amount.

Compare estimates and the final disclosure

The CFPB explains that estimated cash to close includes the down payment and closing costs, minus deposits, seller credits, and other adjustments. Compare Loan Estimates from lenders using the same price, down payment, and loan type, then compare the selected estimate with the final Closing Disclosure. If a charge or cash-to-close amount changes materially, ask the lender or settlement agent to explain it. See the CFPB Loan Estimate explainer.

This calculator provides an educational buyer cash estimate, not a Loan Estimate, Closing Disclosure, settlement statement, mortgage offer, approval, or financial, lending, real-estate, tax, insurance, accounting, or legal advice. Actual allowable credits, financed costs, prorations, escrow, taxes, insurance, program fees, and required funds depend on the transaction and official documents.