Closing Costs

Fees and expenses paid at the time of purchase beyond the down payment.

Example Result

Sample Data

$11,550

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Closing Costs Formula

Purchase Price × Closing Cost %

$385,000 × Closing Cost %

$11,550

What This Means

A sample property priced at $385,000 with $2,850/month rent has a closing costs of $11,550. Closing costs are often overlooked by new investors but can add tens of thousands to your upfront investment. They directly increase your Total Cash Needed and reduce your cash-on-cash return. Always budget for closing costs when evaluating whether a deal pencils out.

Where to Find This Value

Here's where you can find the value for Closing Costs:

Closing Disclosure

The Closing Disclosure form lists all closing costs in detail

Title Company

Your title/escrow company provides a detailed breakdown of closing costs

Calculated From

Closing Costs is calculated using these inputs:

Purchase Price

The agreed-upon price to acquire the property.

Found on your purchase contract / hud-1

$385,000

Closing Costs Percent

Purchase closing costs as a percentage of the purchase price.

Found on your loan estimate

3.00%

Used to Calculate

Closing Costs is used as an input for these calculations:

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Why It Matters

Closing costs are often overlooked by new investors but can add tens of thousands to your upfront investment. They directly increase your Total Cash Needed and reduce your cash-on-cash return. Always budget for closing costs when evaluating whether a deal pencils out.

Detailed Explanation

Closing Costs include lender fees (origination, appraisal, underwriting), title insurance, escrow fees, recording fees, prepaid items (insurance, taxes), and attorney fees. They typically range from 2–5% of the purchase price. These costs are paid at the closing table and increase your total cash investment in the property.