Earnest Money Deposit Calculator
Calculate the earnest money (good-faith) deposit for a home offer at a chosen percentage of the price, and see it as a share of your cash to close.
How to use this tool
- Enter the home's offer price.
- Choose the earnest-money percentage (commonly 1%–3%).
- Enter your total planned down payment.
- Read the deposit amount.
- See how much it covers of your down payment and what remains.
How much earnest money should you offer? This calculator sets the good-faith deposit at your chosen percentage of the price and shows how it fits against your down payment.
Formula
The deposit is a percentage of the offer price, credited toward your down payment:
Earnest money = Price × EMD%
Share of down payment = (Earnest money ÷ Down payment) × 100
Down payment still owed = Down payment − Earnest money
How it works
Earnest money is a good-faith deposit a buyer submits with an offer to show the seller they are serious. It is typically 1%–3% of the purchase price, held in escrow by a neutral third party, and credited toward the down payment and closing costs when the sale closes. In hot markets buyers sometimes offer more to strengthen a bid.
This calculator converts a chosen percentage into a deposit amount and shows how much of your planned down payment it represents and what remains to bring at closing. Because the deposit is credited at closing, a larger earnest amount does not increase your total cash to close — it simply shifts when you pay it.
Earnest money is generally refundable if you back out for a reason protected by a contingency in your contract — financing, appraisal, or inspection — but can be forfeited if you walk away without a valid contingency. Read the contract's contingency clauses carefully and keep the funds in a recognized escrow account, never paid directly to the seller.
Worked example
1% earnest money on a $400,000 offer
- Earnest money = $400,000 × 1% = $4,000.
- As a share of the $80,000 down payment = $4,000 ÷ $80,000 × 100 = 5.00%.
- Down payment still owed at closing = $80,000 − $4,000 = $76,000.
Earnest money deposit $4,000.00 | Share of down payment 5.00% | Down payment still owed $76,000.00
Earnest money deposit by price and percentage
| Home price | At 1% | At 2% | At 3% |
|---|---|---|---|
| $250,000 | $2,500 | $5,000 | $7,500 |
| $350,000 | $3,500 | $7,000 | $10,500 |
| $450,000 | $4,500 | $9,000 | $13,500 |
| $600,000 | $6,000 | $12,000 | $18,000 |
Key terms
- Earnest money
- A good-faith deposit a buyer puts down with an offer to demonstrate serious intent, typically 1%–3% of the price.
- Escrow
- A neutral third-party account that holds the earnest money until closing, when it is applied or refunded per the contract.
- Contingency
- A condition in a purchase contract (financing, appraisal, inspection) that lets the buyer cancel and recover the deposit.
- Cash to close
- The total funds a buyer brings to closing — down payment plus closing costs, less the earnest money already deposited.
Frequently asked questions
- How much earnest money is typical?
- Earnest money is usually 1%–3% of the purchase price, though competitive markets can push it higher. On a $400,000 home that is roughly $4,000–$12,000, held in escrow and credited toward your costs at closing.
- Is earnest money refundable?
- Often yes. If you cancel for a reason covered by a contingency in your contract — such as financing falling through or a failed inspection — the deposit is generally refundable. Backing out without a valid contingency can forfeit it.
- Does earnest money add to my costs?
- No. It is applied toward your down payment and closing costs at settlement, so it lowers the remaining cash you owe at closing rather than adding to your total.