What is 10% earnest money?
10% earnest money is a deposit equal to 10% of the purchase price, paid into escrow after the seller accepts your offer. On a $500,000 home that is $50,000. If the sale closes, the full amount is credited toward your down payment and closing costs.
10% of a $500,000 home
$50,000
Well above typical against the usual 1% to 3%
10% earnest money by home price
The earnest money calculator multiplies the price by the percent. Here is 10% on common prices, with the low and high ends of the usual range beside it. Each price links to its own page with every percentage.
| Home price | 10% deposit | 1% | 3% |
|---|---|---|---|
| $150,000 | $15,000 | $1,500 | $4,500 |
| $200,000 | $20,000 | $2,000 | $6,000 |
| $250,000 | $25,000 | $2,500 | $7,500 |
| $300,000 | $30,000 | $3,000 | $9,000 |
| $350,000 | $35,000 | $3,500 | $10,500 |
| $400,000 | $40,000 | $4,000 | $12,000 |
| $450,000 | $45,000 | $4,500 | $13,500 |
| $500,000 | $50,000 | $5,000 | $15,000 |
| $600,000 | $60,000 | $6,000 | $18,000 |
| $750,000 | $75,000 | $7,500 | $22,500 |
| $1,000,000 | $100,000 | $10,000 | $30,000 |
When is 10% earnest money common?
Ten percent is far above what most buyers put down. It appears in some high-cost markets and on certain luxury and cash purchases, where large deposits are local practice.
A deposit this size is a large share of most down payments, and losing it would hurt. Buyers usually only offer it with firm financing and a clear view of the contract terms.
How much to offer depends on the market, the price and what your purchase agreement says about refunds, including its inspection and appraisal contingencies. The guide on how much earnest money to put down walks through each factor.
How 10% compares with other deposits
On the same $500,000 home, every common earnest money percentage and where it sits against the usual range:
What 10% earnest money does at closing
Earnest money is not an extra cost. At closing it shows up as a credit, so it lowers the cash you still have to bring. With 20% down and closing costs estimated at 3%, a $500,000 purchase needs $115,000 in total. A $50,000 deposit leaves $65,000 due at closing. With 3.5% down, the deposit covers 286% of the down payment.
| Down payment | Down payment | With closing costs | Due after $50,000 credit | Deposit covers |
|---|---|---|---|---|
| 3% | $15,000 | $30,000 | $0 | 333% |
| 3.5% | $17,500 | $32,500 | $0 | 286% |
| 5% | $25,000 | $40,000 | $0 | 200% |
| 10% | $50,000 | $65,000 | $15,000 | 100% |
| 20% | $100,000 | $115,000 | $65,000 | 50% |
Earnest money vs down payment explains how the credit works, and when earnest money is refundable covers what happens if the sale does not close.
Work out 10% on your own price
The calculator below is set to 10%. Type in your price to see the deposit and the cash still due at closing.
At closing
Earnest money on a $500,000 home
$50,000
10% of the price
- Typical range (1% to 3%)
- $5,000 to $15,000
- Down payment (20%)
- $100,000
- Closing costs (3%, estimate)
- $15,000
- Earnest money credited
- −$50,000
- Cash still due at closing
- $65,000
If the sale closes, the deposit is credited to you. It covers 50% of a 20% down payment.
10% earnest money questions
How much is 10% earnest money on a $500,000 house?
$50,000. Multiply the price by 0.1 to get it. On a $300,000 house the same 10% is $30,000, and on $750,000 it is $75,000.
Is 10% a lot of earnest money?
Yes, it is above the 1% to 3% range most agents quote. It can make an offer stand out, and it is also more money at risk if you break the contract outside a contingency.
Do you get 10% earnest money back?
If the sale closes, it is credited toward your down payment and closing costs, so you get the value of it then. If the deal falls apart for a reason your contract allows, such as a failed inspection within the inspection period, it is normally refunded. If you back out for a reason the contract does not allow, the seller may be able to keep it.