Earnest Money Calculator - Home Offer Deposit Estimate
Calculate an earnest-money deposit, estimated down payment, remaining purchase balance, and other upfront costs for a home offer.
Enter a purchase price and deposit percentage to plan the good-faith funds commonly submitted with a real-estate offer.
Earnest Money Calculator - Home Offer Deposit Estimate
Calculate an earnest-money deposit, estimated down payment, remaining purchase balance, and other upfront costs for a home offer.
About the Earnest Money Calculator
Earnest money is a good-faith deposit a buyer commonly provides after a seller accepts a real-estate offer. It signals commitment and is usually held in escrow while inspections, financing, title work, and other contract conditions are completed. This Earnest Money Calculator estimates the deposit by multiplying the purchase price by the percentage negotiated in the offer. It also estimates a down payment, additional costs, and the remaining purchase balance so a buyer can see several important cash figures together before making an offer.
For a $350,000 purchase with a 2.5% earnest-money requirement, the estimated deposit is $8,750. That amount is often credited toward the buyer's funds due at closing if the transaction closes, but the exact treatment belongs in the purchase agreement and escrow instructions. Earnest money is not automatically the same as a down payment. The down payment is the portion of the purchase price paid at closing rather than financed, while earnest money is usually an earlier deposit that may count toward it. The calculator therefore shows both amounts separately.
The appropriate earnest-money percentage depends on local market practice, the property type, purchase price, competition, contingency terms, and seller expectations. In some markets a flat dollar amount is typical; in others, one to three percent may be common. A larger deposit can make an offer more persuasive, but it also increases the amount at risk if a buyer breaches the contract or waives protections. Financing, appraisal, inspection, title, sale-of-current-home, and attorney-review contingencies can determine whether earnest money is refundable. Dates, notice requirements, and dispute procedures matter just as much as the deposit size.
Use this estimate as part of a broader cash-to-close plan. Include lender fees, appraisal, inspections, title insurance, recording charges, prepaid taxes, homeowners insurance, moving costs, and reserves required by the lender. A down payment percentage does not determine a monthly mortgage payment without the loan rate, term, property taxes, and insurance. Laws and customary practices vary by state, province, and country, and escrow holders follow written instructions rather than a calculator output. Review the signed contract and ask a licensed real-estate professional, attorney, escrow officer, or lender about local rules before transferring any funds. The calculator is educational and does not determine deposit obligations or refund rights.
Earnest Money Examples
Earnest money is calculated from the negotiated offer price and deposit percentage.
| Inputs | Output | Notes |
|---|---|---|
| $350,000 price; 2.5% earnest money | $8,750 deposit | The contract controls the deposit deadline and refund conditions. |
| $500,000 price; 1% earnest money; 20% down | $5,000 deposit; $100,000 down payment | The earnest money may be credited toward cash due at closing. |
| $275,000 price; 3% earnest money; $6,000 costs | $8,250 deposit | Additional costs should be budgeted separately from the deposit. |
How to Use the Earnest Money Calculator
- Enter the offer or purchase price for the property.
- Enter the earnest-money percentage specified or contemplated in the offer.
- Optionally enter the intended down payment percentage and estimated additional costs.
- Select Calculate and confirm all figures against your contract and lender estimate.
Earnest Money FAQ
Is earnest money refundable?
It can be refundable when contract contingencies and deadlines are met. The signed agreement and local law still control the outcome.
Does earnest money count toward the down payment?
It often receives credit toward funds due at closing. Confirm that treatment with the contract, escrow holder, and lender.
How much earnest money should I offer?
The amount depends on local custom, competition, price, and contract risk. A real-estate professional can explain local expectations.
What are additional upfront costs?
They may include inspections, appraisal, lender fees, title and escrow charges, insurance, and taxes. Moving expenses and lender reserves should be budgeted separately as well.