How do you calculate cash to close?
Cash to close = down payment + closing costs + prepaids − earnest money already paid − seller/lender credits. On a $350,000 purchase with 10% down, $9,000 costs, $3,500 earnest money, and a $5,000 seller credit: $35,000 + $9,000 − $3,500 − $5,000 = $35,500.
Cash-to-close worksheet: $350,000 purchase, 10% down
| Component | Amount | Direction |
|---|---|---|
| Down payment | $35,000 | + |
| Closing costs + prepaids | $9,000 | + |
| Earnest money deposit | −$3,500 | Already paid |
| Seller credit | −$5,000 | Negotiated |
| Cash to close | $35,500 | Wire or cashier's check |
How to read this table
- Cash to close sits at the top of the table ($35,500) — wire or cashier's check. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Earnest money deposit anchors the bottom (−$3,500) — already paid. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 10×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
- With 5 reference points in the "cash-to-close worksheet: $350,000 purchase, 10% down" table, the fastest way to use this page is to find the closest row, take its amount, then stress-test it ±30% before you build a plan on it.
Context
The figure on your Closing Disclosure page 1 is the authoritative number — verify it against this formula and ask about any difference before wiring. Two safety rules: wiring instructions only come from verified phone contact with the title company (wire fraud targets closings specifically — never trust emailed changes), and the funds must be seasoned in your account (lenders typically want 60 days of statements; large recent deposits need a paper trail).
What moves this number
Financing terms
Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.
True operating expense ratio
Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.
Vacancy and turnover
One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.
Local regulation
Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.
Methodology
Formula per the CFPB Closing Disclosure 'Calculating Cash to Close' table. Example uses typical 2025–2026 figures.
Assumptions and caveats
- Returns exclude appreciation and principal paydown unless a row states otherwise.
- Local tax, insurance and regulation can move these figures by several points in either direction.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How do you calculate cash to close?
Cash to close = down payment + closing costs + prepaids − earnest money already paid − seller/lender credits. On a $350,000 purchase with 10% down, $9,000 costs, $3,500 earnest money, and a $5,000 seller credit: $35,000 + $9,000 − $3,500 − $5,000 = $35,500.
Which option pays the most in the cash-to-close worksheet: $350,000 purchase, 10% down table?
Cash to close, at $35,500 (Wire or cashier's check). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Earnest money deposit at −$3,500 (Already paid). Plan your costs so the low end still works, then treat anything above it as upside.
Why do the numbers vary so much?
The spread between the highest and lowest row is about 10×. Financing terms and true operating expense ratio explain most of that gap — see the drivers section above for the full list.
Where do these numbers come from?
Formula per the CFPB Closing Disclosure 'Calculating Cash to Close' table. Example uses typical 2025–2026 figures.
How can I estimate my own number instead of using a benchmark?
Use the Closing Costs Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
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Last updated 2026-10-01.