Real estate exam

Closing statement calculator

Enter the sale’s figures. You get every debit and credit, the cash the buyer brings and what the seller nets.

The taxes are

Buyer brings to closing

$65,574.50

Seller nets $135,324.50.

Buyer's statement
ItemDebitCredit
Sale price$350,000.00
Earnest money deposit$10,000.00
New loan$280,000.00
Buyer's closing costs$6,850.00
Tax proration (unpaid by seller)$1,275.50
Totals$356,850.00$291,275.50
Seller's statement
ItemDebitCredit
Sale price$350,000.00
Commission (6%)$21,000.00
Seller's loan payoff$190,000.00
Seller's closing costs$2,400.00
Tax proration (unpaid by seller)$1,275.50
Totals$214,675.50$350,000.00
  1. Commission: $350,000.00 × 6% = $21,000.00, a seller debit.
  2. Buyer: debits $356,850.00 − credits $291,275.50 = $65,574.50 due from the buyer.
  3. Seller: credits $350,000.00 − debits $214,675.50 = $135,324.50 due to the seller.
  4. Unpaid taxes appear twice: a debit to the seller and a credit to the buyer.

Take the free state quiz

Which side each item goes on

ItemBuyerSeller
Sale priceDebitCredit
Earnest moneyCredit
Buyer's new loanCredit
CommissionDebit
Seller's loan payoffDebit
Unpaid taxes (in arrears)CreditDebit
Taxes the seller prepaidDebitCredit
Rent collected in advanceCreditDebit

Now try it on exam questions

The free state quiz has 20 questions, math included, and takes 25 minutes. No account.

Questions people ask

What is a debit and a credit on a closing statement?

A debit is an amount a party owes at closing. A credit is an amount a party has already paid or is owed. The buyer brings debits minus credits; the seller receives credits minus debits.

Is earnest money a debit or a credit?

A credit to the buyer, because it has already been paid toward the price. It does not appear on the seller's side.

How do you calculate the seller's net proceeds?

Start with the sale price, then subtract the commission, the seller's loan payoff, the seller's closing costs and any prorations the seller owes.

How do you calculate the buyer's cash to close?

Add the price and the buyer's closing costs, then subtract the earnest money, the new loan and any credits from the seller, such as unpaid taxes.

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