Calculate the amount of earnest money (good faith deposit) you should offer on a home purchase.
Purchase Details
1.0%
0.5%Standard (1-3%)5%
Recommended Deposit
Deposit Amount$0Shows 'Good Faith' to Seller
Protect your money: Ensure your purchase agreement includes contingencies (inspection, financing, appraisal). If you back out for a reason not covered by a contingency, you forfeit this deposit.
About this calculator
Overview
Earnest money is a deposit made to a seller that represents a buyer's good faith to buy a home. It gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing.
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Pro Tips
Typical Amount: 1% to 3% of the sale price. In very competitive markets, offering a higher deposit can make your offer stand out.
Closing: The money is usually held in an escrow account and is applied toward your down payment or closing costs at settlement.
