How much is my escrow payment? Find out instantly with our free escrow calculator. Your monthly escrow payment is simply your annual property tax plus annual homeowners insurance divided by 12 — and this tool also projects your year-end escrow balance and shows exactly how tax or insurance changes will raise or lower your payment.
Annual property tax: $3,600 · Annual homeowners insurance: $1,200
Property Tax = $3,600 ÷ 12 = $300.00/month
Home Insurance = $1,200 ÷ 12 = $100.00/month
Monthly Escrow = $300.00 + $100.00 = $400.00 · Total Annual Escrow = $4,800.00
Beginning balance: $300 · Monthly deposit: $400 · Annual tax: $3,600 · Annual insurance: $1,200
Total Deposits = $400 × 12 = $4,800.00
Total Disbursements = $3,600 + $1,200 = $4,800.00
Result: a $300.00 surplus. Under RESPA, surpluses of $50 or more must be refunded or credited within 30 days of the annual analysis.
Beginning balance: $200 · Monthly deposit: $400 · Annual tax: $4,200 · Annual insurance: $1,400 (total disbursements: $5,600)
Total Deposits = $400 × 12 = $4,800.00
Total Disbursements = $4,200 + $1,400 = $5,600.00
Shortage = −$600.00 (negative balance in red)
Result: a $600.00 shortage. The lender typically spreads catch-up over 12 months: $600 ÷ 12 = $50.00/month extra — your new escrow payment would be $450.00/month.
Annual Property Tax = your yearly tax bill from the local assessor
Annual Homeowners Insurance = your yearly hazard insurance premium
PMI & HOA = optional — PMI is often escrowed; HOA usually is not
Shortage (ending balance below zero) → the lender raises your monthly payment to catch up
Surplus (ending balance above the cushion limit) → the lender refunds or credits you
Typical catch-up = shortage ÷ 12 months added to your payment
Your escrow payment is recalculated every year after the annual escrow analysis — it can change even when your interest rate is fixed.
No PMI/HOA: enter $0 and they are simply skipped from the total.
Zero tax or insurance: unusual, but the calculator handles $0 amounts correctly.
Negative balance: shown in red as a shortage — the lender must be told, and your payment will adjust.
Cushion limits: RESPA allows lenders to keep up to about 2 months of extra escrow cushion; anything beyond a $50 surplus must be refunded.
Add up your annual property tax and homeowners insurance (plus optional PMI and HOA) and divide by 12 to get the exact escrow amount in your monthly mortgage payment.
Project what your escrow account balance will be at the end of the year — the same math lenders run during your annual escrow analysis — with a month-by-month table.
See immediately when your account will run short, how big the shortage is, and what the catch-up payment will be (typically the shortage spread over 12 months).
Got a reassessment notice or a new insurance quote? See exactly how much your monthly escrow payment will go up or down before the lender's letter arrives.
An escrow account — also called an impound account — is a special holding account your mortgage lender manages on your behalf. Each month, your lender collects one-twelfth of your estimated annual property tax and homeowners insurance along with your principal and interest payment, then uses that money to pay your tax bill and insurance premium when they come due. You never see the bills; the lender handles them automatically.
So when you ask "how much is my escrow payment?", the answer is simply your annual property tax plus annual homeowners insurance (and sometimes PMI) divided by 12. On a typical home with $3,600 of annual property tax and $1,200 of insurance, that is $400 per month added to your mortgage payment.
Note that PMI is also commonly collected through escrow, while HOA dues are usually paid directly by you — although a minority of lenders include them in the escrow calculation. This calculator lets you add both so your estimate matches whatever your lender actually does.
Once a year, your lender performs an escrow analysis (also called an escrow account review). They compare what you actually paid into the account against the real tax and insurance bills they paid out on your behalf, then project the coming year. If your account is short, you get a shortage notice; if it is overfunded, you get a surplus refund or credit.
This is the exact calculation behind the Escrow Analysis mode of this calculator: ending balance = beginning balance + (monthly deposit × 12) − total disbursements. A negative result means a shortage — your payment will go up. A large positive result means a surplus — you may get money back.
If you believe your escrow analysis is wrong, you have the right to dispute it in writing. Ask for the itemized disbursement records, verify your tax bill and insurance premium were paid in full and on time, and check the cushion calculation. Lenders are required to correct errors and reprocess the analysis when you provide supporting documentation.
Your escrow payment is not set in stone — it is driven entirely by your tax bill and insurance premium, so lowering those lowers your monthly escrow. Since escrow accounts are reviewed every year, changes you make now will show up in your next annual analysis.
Use the Tax/Insurance Change mode of this calculator to see the impact of a successful tax appeal or a cheaper insurance quote before you switch. For example, cutting your insurance from $1,400 to $1,200 a year lowers your monthly escrow by about $16.67 — small on its own, but it adds up alongside a tax appeal.
Educational Purposes Only: This escrow calculator is provided for educational and informational purposes only. Results are estimates based on the information you provide and standard escrow formulas. They do not constitute financial advice, loan approval, or a commitment to lend. Actual escrow payments depend on your lender's specific policies, your property tax assessment, insurance premiums, PMI terms, RESPA cushion limits, and the timing of disbursements. Always review your annual escrow statement carefully and consult your mortgage servicer or a qualified financial professional before making decisions based on these results.