Earnest Money Calculator - How Much Earnest Money to Put Down

You're bidding on a $350,000 home in a competitive market, and your agent asks how much earnest money you want to put down. You float $1,000, because it's a round number and it feels safe. The seller picks a different offer at the same price, but with $7,000 in earnest money. You didn't lose on price. You lost on signal.

Here's what earnest money actually tells the seller. It's a good-faith deposit you put up when your offer is accepted, held in escrow, that says you're serious enough to risk real money. The bigger the deposit, the more convinced the seller is that you'll close. In a multiple-offer situation, two identical prices aren't identical at all, the one backed by stronger earnest money wins.

So how much is normal? Earnest money typically runs 1% to 3% of the purchase price, though hot markets push it higher:

• 1% on a $350,000 home: $3,500. A standard, safe deposit in a balanced market.
• 2%: $7,000. A competitive offer that signals real commitment.
• 3%: $10,500. A strong-market deposit that makes your offer hard to ignore.

The good news that calms most buyers: earnest money is not an extra cost. It's a prepayment. At closing, your deposit is credited toward your down payment and closing costs. Put down $7,000 in earnest money, and that's $7,000 less you wire at the closing table. You're not spending it, you're paying it early.

The part that matters most is when you get it back if the deal falls through. A well-written purchase contract includes contingencies, financing, inspection, and appraisal, that let you walk away and recover your deposit. Waive those contingencies to make your offer more attractive, and you put the deposit genuinely at risk. Enter your purchase price above to see your earnest money at each common percentage, so you can put down a number that wins the deal without exposing money you can't afford to lose.