# Earnest Money Calculator

URL: https://speedycalculator.com/calculators/finance/earnest-money/
Last updated: 2026-10-25

> The earnest money calculator works out the good-faith deposit typically expected with an offer on a home – 1% to 3% of the price (or more in hot markets) – and how it is credited at closing.

## Inputs

- Property price
- Earnest money percentage (%)
- Planned down payment (%)

## Results

- Earnest money needed
- Remaining down payment at closing

## Formula

```
Earnest money = purchase price × earnest money %
At closing it is credited toward the down payment and closing costs
```

## Explanation

Earnest money shows the seller you are serious. It is held in escrow and usually refundable if a contingency (inspection, financing, appraisal) fails, but you may lose it if you back out for another reason.

### How to use the Earnest Money Calculator

- **Property price**
- **Earnest money percentage**
- **Planned down payment**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the property price and the earnest money percentage.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterProperty priceAmount in your currencyEarnest money percentageIn %Planned down paymentIn %

### What each result means

- **Earnest money needed** = [Property price]×[Earnest money percentage]÷100
- **Remaining down payment at closing** = max([Property price]×[Planned down payment]÷100 - [Earnest money needed], 0)

### Example values

How the main result changes when **Property price** changes and everything else stays at the example values above:

Property priceEarnest money needed225,0004,500337,5006,750450,0009,000562,50011,250675,00013,500900,00018,000

## Worked example

Inputs — Property price: $450,000; Earnest money percentage: 2 %; Planned down payment: 10 %.

Results — **Earnest money needed = $9,000.00**; Remaining down payment at closing = $36,000.00.

## FAQ

**How much is earnest money?**
Typically 1–3% of the purchase price.

**Do I get earnest money back?**
Usually yes if a contingency in the contract isn't met; otherwise it may be forfeited.

**Where does earnest money go?**
Into an escrow account, then toward your down payment at closing.

**What formula does the Earnest Money Calculator use?**
Earnest money = purchase price × earnest money %.