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Finance

Escrow Payment Calculator

Monthly escrow, cushion and shortage spread.

Enter your values

ⓘ Live results

Results
Monthly escrow
$662.50
Total monthly payment (PITI)
$2,762.50
With the shortage spread
$2,837.50
Shortage per month
$75.00
Required cushion
$1,325.00
Annual escrow collected
$7,950.00

Quick answer

Monthly escrow = (annual tax + insurance) ÷ 12, and lenders may hold a cushion of up to two months of those payments.

Escrow = (tax + insurance) ÷ 12; cushion = 2 months

How to use the Escrow Payment Calculator

  1. 1Enter your annual property tax and insurance premium.
  2. 2Add PMI or HOA amounts if your lender escrows them.
  3. 3Enter any shortage from the annual escrow analysis and how long you can spread it.

Worked example

Using the values the calculator loads with:

Inputs

  • Annual property tax6200 $
  • Annual homeowners insurance1750 $
  • Monthly PMI0 $
  • Monthly HOA in escrow0 $
  • Escrow shortage900 $
  • Months to spread the shortage12
  • Principal and interest2100 $

Results

  • Monthly escrow$662.50
  • Total monthly payment (PITI)$2,762.50
  • With the shortage spread$2,837.50
  • Shortage per month$75.00
  • Required cushion$1,325.00
  • Annual escrow collected$7,950.00

Frequently asked questions

Why did my escrow payment jump?

Almost always a property tax reassessment or an insurance premium increase, plus the lender rebuilding its cushion after paying the higher bill.

Can I pay a shortage in one go?

Yes, and it keeps your monthly payment lower. The lender must offer at least a 12-month spread if you would rather not.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.