Closing statement calculator
Enter the sale’s figures. You get every debit and credit, the cash the buyer brings and what the seller nets.
Buyer brings to closing
$65,574.50
Seller nets $135,324.50.
| Item | Debit | Credit |
|---|---|---|
| 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 |
| Item | Debit | Credit |
|---|---|---|
| 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 |
- Commission: $350,000.00 × 6% = $21,000.00, a seller debit.
- Buyer: debits $356,850.00 − credits $291,275.50 = $65,574.50 due from the buyer.
- Seller: credits $350,000.00 − debits $214,675.50 = $135,324.50 due to the seller.
- Unpaid taxes appear twice: a debit to the seller and a credit to the buyer.
Which side each item goes on
| Item | Buyer | Seller |
|---|---|---|
| Sale price | Debit | Credit |
| Earnest money | Credit | |
| Buyer's new loan | Credit | |
| Commission | Debit | |
| Seller's loan payoff | Debit | |
| Unpaid taxes (in arrears) | Credit | Debit |
| Taxes the seller prepaid | Debit | Credit |
| Rent collected in advance | Credit | Debit |
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.