Mortgage Escrow Calculator
The monthly escrow for property tax and insurance, the cushion your lender holds, and your total monthly payment with principal and interest.
Result…
How it's calculated
Escrow costs per year = property tax + insurance + other escrowed items Monthly escrow = yearly costs ÷ 12 Cushion = monthly escrow × cushion months Total monthly payment = principal and interest + monthly escrow + HOA
Splits the yearly property tax, home insurance and any other escrowed bills into twelve monthly parts and adds them to the principal and interest, worked out from the loan or entered directly. It also shows the cushion: the extra months of escrow a lender may keep in the account as a buffer. HOA or service charges are added to the total but kept out of escrow, as they are usually paid directly.
Your numbers, step by step
About the Mortgage Escrow calculator
This mortgage escrow calculator shows how property tax and home insurance turn into a monthly amount on top of your mortgage. Many lenders collect these yearly bills in twelve parts and pay them for you from an escrow account, sometimes called an impound account. Enter the yearly tax, insurance and any other escrowed items, and either the loan details or the principal and interest you already pay. You get the monthly escrow, the total monthly payment and the cushion: the extra months of escrow a lender may keep as a buffer. An HOA or service charge can be added to the total, kept outside escrow. It helps when you budget for a new home or check an escrow statement. Whether escrow is used, and the cushion allowed, differ by country and lender.
How to use it
- Under “Principal and interest”, choose “Work it out” and enter the loan amount, rate and term, or choose “I know it” and enter your monthly figure.
- Enter the “Property tax per year” and the “Home insurance per year”.
- Add any “Other escrowed items per year” and any “HOA or service charge per month”.
- Set the “Cushion” to the number of extra months your lender holds.
- Read the total monthly payment, the monthly escrow and the cushion held.
Worked example
A 280,000 loan at 6.25% over 30 years has principal and interest of 1,724.01 a month. Property tax of 4,200 and insurance of 1,800 a year make 6,000 of escrow costs, or 500 a month, so the total monthly payment is 2,224.01. A 2-month cushion means the lender holds an extra 1,000, and escrow is about 22.5% of the payment.
Updated
Questions people ask
How is a monthly escrow payment calculated?
Add the yearly property tax, home insurance and any other escrowed bills, then divide by 12. The total monthly payment is that amount plus principal and interest.
What is an escrow cushion?
It is a buffer a lender keeps in the escrow account in case a bill is higher than expected, counted in months of escrow. The calculator multiplies the monthly escrow by the months you enter.
Why did my escrow payment go up?
Escrow follows your tax and insurance bills, so when either rises the monthly amount rises too. Lenders usually review the account each year and settle any shortfall or surplus.
Are HOA fees part of escrow?
Usually not: they are often paid directly to the association. The calculator adds them to the total monthly cost but keeps them out of the escrow figure and the cushion.
Is this the exact amount my lender will collect?
Not necessarily. Lenders time the payments to when bills fall due, may need a starting deposit and set their own cushion within local rules, which differ by country. Check your escrow statement or ask your lender, and see the full loan payment in the mortgage calculator.