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Finance Calc Kit
Real estate

Earnest Money Calculator

Calculate earnest money deposit amount, percentage, remaining down payment, and total cash needed at closing for real estate purchases.

Purchase details

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%
%
$

Earnest money deposit (EMD)

$7,000.00

Closing cash summary

Total down payment (20.0%)

$70,000.00

Remaining down payment at closing

$63,000.00

Estimated loan amount

$280,000.00

Cash due at closing

$70,000.00

Total buyer out-of-pocket cost

$77,000.00

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How the earnest money calculator works

Earnest money is a good-faith deposit buyers submit with a purchase offer. This calculator estimates the deposit amount, remaining down payment due at closing, estimated loan size, and total cash needed from contract to keys. All math runs in your browser.

Earnest money is credited toward your down payment at closing. To size the full down payment from purchase price, use the down payment calculator. For monthly mortgage payments after closing, open the mortgage calculator with taxes and insurance. To see how much home you can afford, try the house affordability calculator. When you sell, estimate agent fees and net proceeds with the real estate commission calculator.

Earnest money and closing cash formulas

Earnest Money=Purchase Price×EMD %\text{Earnest Money} = \text{Purchase Price} \times \text{EMD \%}
Cash at Closing=(Down Payment−Earnest Money)+Closing Costs\text{Cash at Closing} = (\text{Down Payment} - \text{Earnest Money}) + \text{Closing Costs}

Total out-of-pocket cash equals the earnest deposit plus cash due at the closing table.

Worked example: $350,000 home, 2% EMD, 20% down, $7,000 closing costs

  1. Earnest money: $350,000 x 2% = $7,000
  2. Total down payment: $350,000 x 20% = $70,000
  3. Remaining down payment at closing: $70,000 - $7,000 = $63,000
  4. Estimated loan: $350,000 - $70,000 = $280,000
  5. Cash at closing: $63,000 + $7,000 = $70,000
  6. Total out-of-pocket: $7,000 + $70,000 = $77,000

Frequently asked questions

How much earnest money should I offer?
Many buyers offer 1% to 3% of the purchase price, but local market norms and seller expectations vary. Stronger offers may use a higher deposit.
Is earnest money the same as the down payment?
No. Earnest money is an upfront deposit that is applied toward the down payment at closing. You still owe the remaining down payment balance plus closing costs.
What happens to earnest money if the deal falls through?
Refund rules depend on contract contingencies such as financing, inspection, or appraisal. This calculator does not model forfeiture scenarios.
What closing costs should I include?
Common items include lender fees, title insurance, escrow charges, prepaid taxes, and insurance. Many buyers budget 2% to 5% of the purchase price.
Are the results stored?
No. Inputs update the page URL for sharing, but nothing is saved on a server.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.