Earnest Money Calculator — Good-Faith Deposit
Find out how much earnest money to offer and how it fits into your down payment. Enter the home price, earnest money percentage, and down payment percentage to see the deposit amount, remaining cash needed at closing, and loan size.
$
%
%
Good-faith deposit paid when your offer is accepted — applied toward your down payment at closing
$400,000
Purchase priceEarnest money deposit
2%
Remaining down payment
18%
Loan amount
80%
- 1
Earnest rate
2% ÷ 100 = 0.02 - 2
Earnest money deposit
400,000 × 0.02 = 8,000Applied toward your down payment at closing — not an extra cost.
How does this calculator work?
Earnest money = purchase price × earnest rate (typically 1–3% in the US). It is a good-faith deposit held in escrow after offer acceptance, then credited toward your down payment at closing. Your remaining cash due at closing = full down payment minus the earnest money already paid. If you withdraw without a contingency, you forfeit the deposit.
Formula
How this is calculated
Earnest money (also called a good-faith deposit) is a sum the buyer pays — typically within 1–3 business days of an accepted offer — to demonstrate serious intent to purchase. It is held in escrow by a title company or the seller's broker until closing. At closing, the full earnest money amount is credited toward the buyer's down payment or closing costs, so it is not an extra cost — just an earlier payment of money you would owe anyway.
The typical earnest money amount in the US is 1–3% of the purchase price, though competitive markets (especially in major cities) may see offers of 5–10%. There is no legal minimum or maximum; it is negotiated between buyer and seller. A higher earnest amount signals stronger commitment and can make your offer more attractive in a multiple-offer situation.
If the buyer backs out of the deal without a valid contractual contingency (financing, inspection, appraisal), the seller generally keeps the earnest money as liquidated damages. If the sale falls through due to a failed contingency, the earnest money is refunded to the buyer. Always verify the terms with a licensed real estate attorney or agent in your jurisdiction, as rules vary by state and country.
Frequently asked questions
No, but earnest money becomes part of the down payment. Earnest money is paid shortly after offer acceptance; the remaining down payment is paid at closing. For example, on a $400 000 home with a 20% ($80 000) down payment and 2% ($8 000) earnest money, you pay $8 000 now and $72 000 at closing. Total cash into the deal equals the full down payment plus any closing costs.
Yes, if you back out without a valid contingency. Standard contracts include financing, inspection, and appraisal contingencies that protect the buyer — if one of those fails, you can walk away and get your deposit back. If you simply change your mind after all contingencies are removed, the seller can typically keep the earnest money as compensation for taking the home off the market.
In most US markets, 1–3% of the purchase price is standard. In highly competitive markets or for luxury properties, 3–5% (or more) may be expected. The amount is always negotiable. Too low an amount may weaken your offer; too high increases your financial risk if something goes wrong before contingencies are removed.
TG we-Calculate Editorial Team. (2026). Earnest Money Calculator — Good-Faith Deposit [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/earnest-money-calculator
TG we-Calculate Editorial Team. "Earnest Money Calculator — Good-Faith Deposit." TG we-Calculate. 2026. https://we-calculate.com/calculator/earnest-money-calculator.
TG we-Calculate Editorial Team, "Earnest Money Calculator — Good-Faith Deposit," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/earnest-money-calculator
@misc{wecalculate_earnest_money_calculator, title = {Earnest Money Calculator — Good-Faith Deposit}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/earnest-money-calculator}}, year = {2026}, note = {TG we-Calculate} }
Did this calculator help you?