Earnest Money Calculator
Find the right earnest money deposit for your home purchase.
This tool is for informational and educational purposes only. It is not a substitute for professional financial, medical, legal, or engineering advice. See Terms of Service.
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This calculator helps you determine how much earnest money (also called a good faith deposit) to include with your home purchase offer:
- Enter the purchase price. This is the offer amount or listing price of the home you are buying.
- Set the earnest money percentage. Type a custom percentage or use the Local Custom dropdown to pick 1%, 2%, or 3%. The dropdown updates the percentage field automatically.
- Optionally enter your down payment percentage. If provided, the calculator shows how much of your down payment remains after the earnest money deposit is applied. Earnest money typically counts toward the down payment at closing.
Your recommended earnest money amount appears instantly. The context line shows the typical range (1% to 3%) for your purchase price and, if you entered a down payment percentage, the remaining amount you will need at closing.
Use the Share button to send a pre-filled link to your real estate agent or co-buyer.
About Earnest Money Deposits
Earnest money is a deposit made to a seller showing the buyer is serious about purchasing the property. It is typically held in an escrow account and applied toward the down payment or closing costs at settlement. If the deal falls through due to a failed contingency (inspection, financing, appraisal), the buyer usually gets the deposit back. If the buyer backs out without a valid contingency, the seller may keep the earnest money.
The typical range is 1% to 3% of the purchase price, though competitive markets may see higher deposits. In hot markets, a larger earnest money deposit can strengthen your offer. All calculations run in your browser with no data stored.
Frequently Asked Questions
How much earnest money should I offer?
Most buyers offer 1% to 3% of the purchase price. In competitive markets, 2% to 3% is common. Ask your real estate agent about local norms. A higher deposit signals strong intent and can make your offer more attractive to sellers.
Is earnest money refundable?
Yes, if the deal falls through due to a valid contingency such as a failed home inspection, financing denial, or low appraisal. If you simply change your mind without a contractual contingency, the seller may be entitled to keep the deposit. Always review your purchase agreement carefully.
Does earnest money count toward the down payment?
Yes. Earnest money is typically applied as a credit toward your down payment or closing costs at settlement. For example, if your down payment is $80,000 and your earnest money deposit was $8,000, you would owe $72,000 at closing (plus any closing costs).