Earnest Money Calculator

Size an earnest money deposit that makes your offer competitive without putting too much cash at risk. See a suggested range for buyer's, balanced, seller's, and bidding-war markets — plus what happens to the money if you walk before or after clearing contingencies.

Offer details

Purchase price

Earnest money %

Market temperature

Cash to close context

Down payment %

Total closing costs

Non-refundable earnest clause

Contract has a partial non-refundable portion

Earnest money deposit

$8,500

2.00% of purchase price

Suggested range for market

$4,250 – $8,500

1% – 2% of price

Estimated cash to close

$52,000

EM = 16.3% of cash to close

At-risk if you walk post-contingency

$8,500

all earnest money

How strong is your offer?

Earnest money is inside the typical balanced market range. 1% to 2% is the normal range in a balanced market.

Refundable while in contingencies

$8,500

Assumes inspection, appraisal, and financing contingencies survive.

Down payment

$42,500

applies at closing; earnest money is credited to it

Earnest money is usually credited toward the down payment and closing costs at closing — it is not extra money. It's held in escrow by a neutral third party, typically the listing brokerage or title company.

How to Use

Enter your planned purchase price and the percent you're considering offering as earnest money.
Pick the market temperature — buyer's market, balanced, seller's market, or bidding war. The tool gives you a range of typical earnest money amounts for that condition.
Enter your down payment percent and total closing costs so you can see the earnest money deposit as a share of the total cash you need at closing.
If your offer includes a partial non-refundable earnest clause common in hot markets, enable it and set the percent that releases to the seller post-contingency.
Review the at-risk amount — that's the money you lose if you back out outside the contingencies in your contract.

Frequently Asked Questions

What is earnest money?

Earnest money is a good-faith deposit the buyer sends when a purchase contract is signed. It shows the seller you're serious and signals that you'll follow through. At closing, the earnest money is credited to the down payment and closing costs.

How much earnest money should I offer?

Typical ranges are 1% to 3% of purchase price. In a cold market 0.5% to 1% can be enough; in a hot market or bidding war 3% to 5% is common. The exact amount depends on the seller's expectations, which your agent will know.

Who holds earnest money?

A neutral third party — usually the listing brokerage, a title company, or an escrow company. They hold it until closing (when it's credited to the buyer) or until a release is signed if the contract is cancelled.

When do I lose earnest money?

If you breach the contract — for example, walking away outside the inspection, appraisal, or financing contingency windows. If you cancel properly inside a contingency, your earnest money is returned. State laws and the exact contract language govern disputes.

What is a non-refundable earnest clause?

In competitive offers, buyers sometimes agree that a portion of earnest money releases directly to the seller after a short period (say, 10 days) or after a specific contingency is waived. That money is then non-refundable even if the deal falls through — it's a stronger signal but a larger risk.