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Buyer’s Closing Costs Calculator

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Estimate the settlement and escrow costs a purchaser will incur in purchasing a home at a specific sales price. This calculator allows you to perform an analysis of typical estimated closing costs, prepaid items, and monthly payments for different combinations of loan types (FHA, VA, Conventional, etc).

Each time you save closing cost estimates, those values will appear by default on future buyer’s closing cost analysis reports. For each type of loan selected, several values are calculated automatically, including the following:

  • Loan amount from sales price and specified percentage
  • Loan origination fee from loan amount
  • Loan discount values from percentage points
  1. To access this calculator, first click on the Reports icon on the navigation menu bar.
  2. Then, click the Buyer’s Approximate Closing Costs link in the Financial Calculators section.
  3. A large calculation table will displayed. The image below shows how the Prepaid Items at the bottom of the calculator are estimated. 
    • First Year Insurance (Homeowner/Hazard): This figure is not automatically calculated, however is important to other calculations.
    • Insurance Escrow Reserve / (x) Months: These values take the First Year Insurance values and divide them by the fraction of the year input as months (12/x)
    • Tax Reserve / (x) Months (Tax Paid $(y) for Year (z) est.): The tax paid for the year (y) divided by the fraction of the year (12/x).
    • Prepaid Interest For (x) Days (est.): These values are the result of a payment calculation based on Mortgage Loan Interest Rate, the number of days in consideration (x), and the sales price.
    • PMI/MIP (Mortgage Insurance) fee: Filed using the percentages and the sales price, where the value is made by the percentage of the sales price.
    • PMI/MIP Escrow Reserve / (x) Months: Filed using the percentages and the sales price. Where the value is made by the percentage of the sales price divided by the fraction of the year in consideration (12/x).
  4. To save default values to the buyer’s closing costs calculator, select Click here to save these estimates as your default.
  5. Click on Restore Defaults to retrieve default fields.
  6. Click Calculate for each section and then Calculate All when finished.

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Updated on October 21, 2020

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