Earnest Money Calculator

Calculate recommended earnest money deposit for your home purchase by price and market.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Owning a Home

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Your Earnest Money

$8,000.00

Typical for Market

$8,000.00

Recommended Range

$4,000.00 - $12,000.00

Earnest Money Details

Home Price$400,000.00
Your Rate2.00%
Your Deposit$8,000.00
Market Low (1%)$4,000.00
Market High (3%)$12,000.00

Use the Earnest Money Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Earnest money is the good-faith deposit you put down to show a seller you intend to follow through on a purchase. The amount you choose carries real weight, and a deposit sized correctly can lift your offer above competing bids and tip a hesitant seller toward your contract.

You enter the percentage you plan to offer, and the calculator compares it with a range for the market you pick: 1-3% of the price with 2% as typical in a balanced market, 2-5% with 3% typical in a seller's market, where buyers need to signal stronger commitment, and 0.5-2% with 1% typical in a buyer's market. These bands are the calculator's rules of thumb.

Local custom and the specifics of the property both shape what the right deposit really is, so the figure your agent suggests may differ from a formula. Putting down an unusually large sum without solid contingencies exposes you to losing it if the deal collapses for a reason your contract doesn't cover. Going too low carries its own cost: in a tight market with thin inventory and multiple offers, a small deposit can read as a lack of seriousness.

Example: $450,000 Home in a Seller's Market

  1. 1 Imagine you're buying a $450,000 home in a competitive market where inventory is tight, so you choose Seller's Market.
  2. 2 The calculator's range for that market is 2% to 5% of the price, or $9,000 to $22,500, with 3% ($13,500) as the typical deposit.
  3. 3 You plan to offer 2.5%, which the calculator shows as $11,250: inside the range, but below the $13,500 typical figure, so a larger deposit could make the offer stand out more.
  4. 4 In a balanced market the same home's range would be $4,500 to $13,500 (typical $9,000), and $11,250 would sit above typical. Whatever the amount, the deposit is only as safe as your contingencies: you can lose it if you back out for a reason the contract doesn't cover.

Source: CFPB — Owning a Home · Last updated: September 2026

Frequently Asked Questions

How much earnest money should I put down?
Earnest money typically ranges from 1-3% of the purchase price in most markets. In competitive markets, 3-5% or more can strengthen your offer. On a $400,000 home, expect to deposit $4,000-12,000.
Do I get my earnest money back if the deal falls through?
It depends on your contingencies. You typically get it back if the home fails inspection, your financing falls through, or the appraisal comes in low (if those contingencies are in your contract). If you back out without a valid contingency, the seller may keep it.
Where does earnest money go at closing?
Earnest money is applied toward your down payment and closing costs at closing. It is held in an escrow account by the title company, real estate brokerage, or attorney until closing. It is not an additional cost on top of your down payment.

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