How do you calculate closing costs for the buyer?
Add four buckets: lender charges (origination, points, appraisal ≈ 1–1.5% of the loan), title and escrow (≈0.5–1% of price), prepaids (2–6 months of taxes and insurance), and government fees. On a $350,000 purchase with 10% down, expect $9,000–$14,000 on top of the down payment.
Buyer closing worksheet: $350,000 price, $315,000 loan
| Bucket | Estimate | Examples |
|---|---|---|
| Lender charges | $3,200–$4,700 | Origination, appraisal, credit, flood cert |
| Title & escrow | $1,800–$2,600 | Lender's policy required; owner's optional |
| Prepaids & escrow cushion | $2,800–$4,200 | Insurance year 1 + tax reserves |
| Government fees | $300–$1,500 | Recording; transfer tax where buyer pays |
| Total cash to close (excl. down payment) | $8,100–$13,000 | ≈ 2.3–3.7% of price |
How to read this table
- Total cash to close (excl. down payment) sits at the top of the table ($8,100–$13,000) — ≈ 2.3–3.7% of price. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Government fees anchors the bottom ($300–$1,500) — recording; transfer tax where buyer pays. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 43×. 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.
- Most rows are ranges, not single figures. The low end usually reflects a weaker month, a softer audience geography, or an unoptimised setup; the high end reflects a well-run, well-targeted operation of the same size.
- With 5 reference points in the "buyer closing worksheet: $350,000 price, $315,000 loan" table, the fastest way to use this page is to find the closest row, take its estimate, then stress-test it ±30% before you build a plan on it.
Context
Your Loan Estimate (within 3 business days of application) and Closing Disclosure (3 days before signing) are the two documents that pin these numbers down — federal rules limit how much most fees can increase between them (0% tolerance on lender fees, 10% on third-party services you picked from their list). Shopping the lender is the highest-leverage move: origination fees and rate-for-points tradeoffs vary by thousands.
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
Buckets follow the standard Loan Estimate sections A–J. Estimates from 2025–2026 national fee data on a conventional 90% LTV purchase.
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 closing costs for the buyer?
Add four buckets: lender charges (origination, points, appraisal ≈ 1–1.5% of the loan), title and escrow (≈0.5–1% of price), prepaids (2–6 months of taxes and insurance), and government fees. On a $350,000 purchase with 10% down, expect $9,000–$14,000 on top of the down payment.
Which option pays the most in the buyer closing worksheet: $350,000 price, $315,000 loan table?
Total cash to close (excl. down payment), at $8,100–$13,000 (≈ 2.3–3.7% of price). 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?
Government fees at $300–$1,500 (Recording; transfer tax where buyer pays). 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 43×. 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?
Buckets follow the standard Loan Estimate sections A–J. Estimates from 2025–2026 national fee data on a conventional 90% LTV purchase.
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.