Earnest Money Calculator: Deposit on a Home Offer
Work out the earnest money deposit on a home offer — the good-faith sum that shows a seller you are a serious buyer.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Earnest money deposit | Remaining price |
|---|---|---|
| 1% of $400k | 4,000 | 396,000 |
| 2% of $300k | 6,000 | 294,000 |
| 3% of $550k | 16,500 | 533,500 |
| 1.5% of $250k | 3,750 | 246,250 |
How This Calculator Works
Enter the offer price and the earnest money percentage, typically around 1% to 3%. The calculator finds the deposit amount, and shows the remaining price still to be covered by the down payment and the mortgage.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
On a $400,000 offer with a 1% earnest money deposit, the deposit is $4,000. That sum is held in escrow and, on a successful purchase, credited toward the down payment or closing costs.
Key Insight
Earnest money is not an extra cost — on a completed purchase it counts toward what you owe at closing. It is at risk mainly if you walk away for a reason not protected by a contingency in the contract.
Frequently Asked Questions
What is earnest money?
Earnest money is a deposit made with a home offer to show the seller you are committed. It is held in escrow until the sale closes or falls through.
How much earnest money is normal?
Often 1% to 3% of the offer price, though it varies by market and competition. A larger deposit can strengthen an offer in a competitive situation.
Is earnest money an extra cost?
No. On a completed purchase it is credited toward your down payment or closing costs, so it is part of the money you were going to pay anyway.
Can I lose my earnest money?
You can, if you back out for a reason not covered by a contingency. Financing, inspection, and appraisal contingencies typically protect the deposit.
Where is earnest money held?
In an escrow or trust account managed by a neutral third party, not by the seller, until the transaction closes or is cancelled.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source.
Methodology & Review
The earnest money deposit is the offer price multiplied by the chosen percentage. The remaining amount is the balance of the price still to be funded by down payment and loan.
Written by Ugo Candido · Last updated May 17, 2026.