Earnest Money on $500,000 Home Purchase
A 1% earnest money deposit on a $500,000 home comes to $5,000.
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.
Calculate the earnest money deposit for a $500,000 home and understand what portion of your down payment it represents.
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.