Faro Labs / Tools / Closing cost calculator
Closing cost & cash-to-close calculator
The down payment is only part of what you bring to the table. Estimate your closing costs and the real total cash you'll need to close, after earnest money and seller credits.
Your 20% down payment of $85,000 is only part of it. Add $10,500 in closing costs and prepaids, subtract $5,000 in credits, and you bring $90,500 to the table.
What goes into cash to close
cash to close = down payment + closing costs + prepaids − earnest money − seller credits
Buyers routinely budget for the down payment and forget everything around it. Closing costs are the fees to originate the loan and transfer the property: lender charges, title insurance, appraisal, inspection, and recording. Prepaids aren't fees at all; they're the first funding of your escrow account, usually several months of taxes and insurance the lender holds. Together these commonly run 2 to 5 percent of price.
What reduces the number
Your earnest money was already deposited when your offer was accepted, so it's credited back against what you owe at closing. Seller concessions money the seller agrees to put toward your costs: directly lower the cash you bring. Both are why the final wire is often less than down payment plus fees would suggest.
For investors
Cash to close is the real denominator of your cash-on-cash return, not the down payment alone. Underestimating it is the most common reason a projected return comes in lower than expected on the first deal.
Closing questions
What are typical buyer closing costs?
Usually 2 to 5 percent of the purchase price for a financed purchase: lender fees, title insurance, appraisal, inspection, recording, and prepaid taxes and insurance. The percentage is higher on cheaper properties because many fees are fixed dollar amounts that don't scale down with price.
What is cash to close?
The total money you actually bring to closing: down payment plus closing costs and prepaid escrows, minus credits like your earnest money deposit and any seller concessions. It's the real out-of-pocket number, and the one to use as your invested capital when calculating cash-on-cash return.
What are prepaids?
Amounts the lender collects up front to fund your escrow account: typically several months of property taxes and homeowners insurance, plus interest from the closing date to your first payment. They're part of cash to close but they aren't a fee; that money is yours, held to pay your own bills.
Every calculator
Every dollar of cash in, accounted for.
Faro folds closing costs into the cash-on-cash return so your projected yield is the real one: paste a listing to see it.
Estimates for analysis and educational use only: not financial, investment, tax, or legal advice. Verify every number independently before making a purchase decision.