Finance category
Mortgage, loan, investing, tax, and money calculators.
Earnest Money vs Down Payment Calculator
See exactly how earnest money fits into the cash stack: it's not in addition to the down payment, it's credited toward it. The calculator shows total cash needed at closing after the credit.
Cash needed at closing
$99,750
after earnest credit
Earnest as % of price
2.00%
$9,500
Down payment
$95,000
20.0% of price
Cash remaining after close
-$4,250
your reserves
How earnest money works
Earnest money is a good-faith deposit (typically 1–3% of price) held in escrow to show the buyer is serious. At closing it's credited toward the down payment and closing costs — it's not in addition to the down payment.
Earnest money is at risk if you back out without a contingency. Inspection, financing, and appraisal contingencies usually allow refund. After contingencies are released, the seller can keep earnest money as liquidated damages.
How to Use
- Enter the purchase price.
- Enter your earnest money deposit (typically 1–3% of price).
- Enter the down payment percentage and closing cost percentage.
- Enter your total available cash to see post-closing reserves.
- Read total cash at closing — earnest money is already credited.
Frequently Asked Questions
Is earnest money in addition to the down payment?
No. Earnest money is a deposit held in escrow during the contract period. At closing it credits against the down payment and closing costs you owe. The total cash you need is down payment + closing costs − earnest money already paid.
What's a typical earnest money amount?
1–3% of purchase price in most US markets. In hot markets, sellers may demand 3–5%. In slower markets or with new construction, 1% or even a flat $500–$1,000 is common.
When can I get earnest money back?
If you back out within an active contingency (inspection, financing, appraisal), the deposit is refunded. After contingencies are released, the seller may keep it as liquidated damages if you walk away.
Where is earnest money held?
By a neutral escrow company, title company, or sometimes the listing brokerage's escrow account. The buyer's agent should confirm a separate trust account, not commingled with operating funds.
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Earnest Money Calculator
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