Math

Cash-to-close estimator.

The total cash you'll bring to closing — down payment and costs, minus deposits and credits.

This is a planning estimate, not financial advice. Your official Closing Disclosure has the exact line items and the final amount to wire.

What "cash to close" includes

Cash to close is the total you need available on closing day, and it's more than just the down payment. On top of it sit closing costs — lender fees, title insurance, appraisal, recording and the like, usually 2–5% of the price — plus prepaids, which are upfront amounts for property taxes, homeowner's insurance and prepaid interest that fund your escrow account. From that total you subtract anything you've already paid or been given: your earnest money deposit, and any seller or lender credits negotiated into the deal. The result is the figure your settlement statement will ask you to wire. It's an estimate; your closing disclosure has the exact line items. For the ongoing monthly cost, see the mortgage calculator.

A worked example

Take a $400,000 purchase with 10% down. The down payment is $40,000. Closing costs at 3% add $12,000, and prepaids — the upfront property tax and insurance that seed your escrow account, plus interest from closing day to the end of that month — come to roughly $3,000. That totals $55,000. Subtract the $5,000 earnest money you already put down when the offer was accepted and the wire on closing day is about $50,000.

Earnest money is the piece people most often forget to subtract. It is not an extra cost; it is a part-payment you made weeks earlier, and it is credited back to you on the settlement statement.

What sits inside "closing costs"

  • Lender fees — origination, underwriting, and any discount points you buy to lower the rate.
  • Third-party services — appraisal, credit report, survey, pest or structural inspections.
  • Title — the title search plus lender's title insurance, and optionally an owner's policy that protects you rather than the bank.
  • Government charges — recording fees and, in many areas, transfer or stamp taxes, which vary enormously by location.

The 2–5% rule of thumb is a starting point, not a quote. Transfer taxes in particular differ so much between jurisdictions that two identical purchases can have closing costs thousands of dollars apart.

Credits, and the document that settles it

Seller credits and lender credits both reduce the cash you bring. A seller may agree to contribute toward closing costs as part of the negotiation, and a lender may offer a credit in exchange for a slightly higher interest rate — useful if you are short on cash now and willing to pay more over time.

Three business days before closing, your lender must provide a Closing Disclosure listing every line item and the exact cash-to-close figure. Compare it against the Loan Estimate you received earlier and query anything that has moved. This calculator is for budgeting ahead of that document, not a substitute for it.

FAQ

How much cash do I need to close on a house?
Your down payment plus closing costs (typically 2–5% of the price) and prepaid escrow items, minus your earnest money deposit and any seller or lender credits. The calculator adds these up into a single estimate.
What's the difference between closing costs and cash to close?
Closing costs are the fees to complete the loan and purchase. Cash to close is the full amount you bring on the day — down payment plus closing costs and prepaids, less credits and the earnest money you already paid.
Is earnest money part of the cash to close?
No — it is subtracted from it. Earnest money is a part-payment you made when the offer was accepted, so it appears as a credit on the settlement statement and reduces the amount you wire on closing day.
How much are closing costs typically?
Commonly 2–5% of the purchase price, but the range is wide because transfer and recording taxes vary enormously by location. On a $400,000 home that is roughly $8,000 to $20,000 before prepaids. Your Loan Estimate gives figures specific to your purchase.
Can the seller pay my closing costs?
Often, yes. Seller credits toward closing costs are a normal part of negotiation, though loan programmes cap how much a seller may contribute. Lender credits work similarly, reducing upfront cash in exchange for a slightly higher interest rate.

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