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
| Field | What to enter |
|---|---|
| Property price | Amount in your currency |
| Earnest money percentage | In % |
| Planned down payment | In % |
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 price | Earnest money needed |
|---|---|
| 225,000 | 4,500 |
| 337,500 | 6,750 |
| 450,000 | 9,000 |
| 562,500 | 11,250 |
| 675,000 | 13,500 |
| 900,000 | 18,000 |
Formula
Earnest money = purchase price × earnest money %At closing it is credited toward the down payment and closing costsWorked 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.
Frequently asked questions
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 %.