Closing costs are separate from the down payment, and they’re easy to underestimate when budgeting for a home purchase.
How it works
The CFPB puts typical closing costs at 2-5% of the home purchase price, not counting the down payment. This calculator shows both ends of that range rather than a single falsely precise number.
What this does not include
Actual closing costs depend heavily on loan type, location, and lender — this range-based estimate is a starting point for budgeting, not a substitute for the itemized Loan Estimate a lender is required to provide.
How to use this calculator
- Enter the home purchase price.
- Adjust the low and high percentage range if you have a more specific local estimate.
A worked example
A $400,000 home purchase, with closing costs typically ranging 2%–5%: low estimate = $8,000, high estimate = $20,000.
What the variables mean
| Variable | Meaning |
|---|---|
| Home price | Purchase price of the home |
| Low rate, high rate | Typical range of closing costs as a percentage of price |
Edge cases worth knowing
Closing costs are a range, not a fixed percentage. They include lender fees, title insurance, appraisal, and local taxes, all of which vary by location and lender — this calculator gives a reasonable estimate range, not a precise quote.
A low rate greater than the high rate is an invalid input combination — the calculator declines to show a result if the range is entered backwards.
Frequently asked questions
Are closing costs the same as the down payment?
No — closing costs are separate fees (title, appraisal, lender fees, and more) on top of whatever down payment is being made.
Can closing costs be rolled into the loan?
Sometimes, depending on the loan program and lender — doing so increases the loan balance and the interest paid over the life of the loan.
Why is there a range instead of one number?
Because actual costs vary by loan type, location, and lender — a single number would falsely imply more precision than a quick estimate can offer.
