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Earnest Money Calculator.

Estimate an earnest-money deposit from purchase price and deposit percentage.

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Earnest money deposit: $3,500.00 $

Earnest money deposit

$0.00$

FAQs

How is Earnest Money calculated?

Refundability, contract terms, and jurisdiction rules are not modeled.

Use Cases

Determine a competitive deposit

Use the calculator to see how different earnest money percentages translate into dollar amounts, helping you make an offer that is attractive to sellers without overcommitting.

Example: For a $300,000 home, a 2% deposit equals $6,000.

Budget for upfront costs

Plan your cash flow by knowing exactly how much you need to have available for the earnest money deposit when you make an offer.

Example: If you agree on a 3% deposit for a $250,000 price, you'll need $7,500.

Frequently Asked Questions

What is earnest money?
Earnest money is a deposit made by a buyer to a seller to show good faith in a real estate transaction. It is typically held in escrow and applied toward the purchase price at closing, or refunded if the deal falls through under certain conditions.
How is earnest money calculated?
This calculator estimates the earnest money deposit as a percentage of the agreed purchase price. You input the agreed price and the desired percentage, and it calculates the deposit amount. The percentage is often 1-3% but can vary by market.
Is earnest money always refundable?
Earnest money is generally refundable if the buyer backs out due to contingencies (like inspection or financing) or if the seller fails to meet contract terms. However, if the buyer defaults without a valid reason, the seller may keep the deposit. Always review your contract.

Tips & Common Mistakes

Tips

  • Typical earnest money deposits range from 1% to 3% of the purchase price, but local customs may vary.
  • Ensure you have the funds readily available, as the deposit is usually due within a few days of offer acceptance.
  • Always read the contract to understand the conditions under which your earnest money is refundable.
  • Use this calculator to compare different percentage amounts before negotiating with the seller.

Common Mistakes to Avoid

  • Assuming the earnest money is non-refundable in all cases; it is often refundable under contingencies.
  • Forgetting to factor in the earnest money when calculating total upfront costs, leading to cash shortfalls.
  • Choosing a percentage without considering local market norms, which can make your offer less competitive.

Last updated: August 13, 2026