Earnest Money Calculator

Our Earnest Money Calculator helps you determine a recommended earnest money deposit for your home purchase, taking into account the property's price and current market conditions. This deposit signals your serious intent to buy, and in the competitive 2026 housing market, a well-calculated earnest money offer can significantly strengthen your bid, especially with projected 2026 median home price growth of 3.8%. A strong earnest money deposit can make your offer stand out among others, potentially swaying sellers in your favor.

Our calculator uses a tiered percentage-based methodology, adjusted by market competitiveness. For a balanced market, we recommend 1-2% of the home's purchase price. In a seller's market, this increases to 2-3%, reflecting the need for a stronger commitment, while in a buyer's market, 0.5-1.5% might suffice. This range is then further refined by considering average regional earnest money practices and current interest rate forecasts for 2026, which are expected to hover around 6.5-7.0% for a 30-year fixed mortgage.

Always consult with your real estate agent to fine-tune your earnest money deposit, as local customs and specific property details can influence the ideal amount. Avoid offering an excessively high amount without proper contingencies, as you could risk losing a substantial sum if the deal falls through for reasons not covered by your contract. Conversely, a too-low deposit might make your offer seem less serious, especially if you're competing against multiple bids in a hot market with limited inventory.