Earnest Money Calculator

Calculate recommended earnest money deposit for your home purchase by price and market.

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home

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Your Earnest Money

$8,000.00

Typical for Market

$8,000.00

Recommended Range

$4,000.00 - $12,000.00

Earnest Money Details

Home Price$400,000.00
Your Rate2.00%
Your Deposit$8,000.00
Market Low (1%)$4,000.00
Market High (3%)$12,000.00

Use the Earnest Money Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Earnest money is the good-faith deposit you put down to show a seller you intend to follow through on a purchase. The amount you choose carries real weight in the 2026 market, where median home prices are projected to climb 3.8%, and a deposit sized correctly can lift your offer above competing bids and tip a hesitant seller toward your contract.

The recommended figure here comes from a tiered percentage of the purchase price, adjusted for how competitive the local market is. A balanced market typically calls for 1-2% of the price; a seller's market pushes that to 2-3% because buyers need to signal stronger commitment, while a buyer's market may only require 0.5-1.5%. Regional norms and the 2026 interest rate outlook narrow the range further, with 30-year fixed mortgages expected to sit near 6.5-7.0%.

Local custom and the specifics of the property both shape what the right deposit really is, so the figure your agent suggests may differ from a formula. Putting down an unusually large sum without solid contingencies exposes you to losing it if the deal collapses for a reason your contract doesn't cover. Going too low carries its own cost: in a tight market with thin inventory and multiple offers, a small deposit can read as a lack of seriousness.

Example: Buying a Home in a Competitive 2026 Market

  1. 1 Imagine you're looking to purchase a home priced at $450,000 in a moderately competitive market in early 2026, where inventory is still somewhat tight.
  2. 2 Based on our methodology for a moderately competitive market, we recommend an earnest money deposit falling within the 1.5% to 2.5% range of the home's price.
  3. 3 For a $450,000 home, this translates to a recommended earnest money deposit between $6,750 and $11,250.
  4. 4 Offering an earnest money deposit of $10,000 (approximately 2.22%) would likely be perceived as a strong and serious offer in this market, demonstrating your commitment to the purchase to the seller.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How much earnest money should I put down?
Earnest money typically ranges from 1-3% of the purchase price in most markets. In competitive markets, 3-5% or more can strengthen your offer. On a $400,000 home, expect to deposit $4,000-12,000.
Do I get my earnest money back if the deal falls through?
It depends on your contingencies. You typically get it back if the home fails inspection, your financing falls through, or the appraisal comes in low (if those contingencies are in your contract). If you back out without a valid contingency, the seller may keep it.
Where does earnest money go at closing?
Earnest money is applied toward your down payment and closing costs at closing. It is held in an escrow account by the title company, real estate brokerage, or attorney until closing. It is not an additional cost on top of your down payment.

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