Escrow Calculator
Calculate your monthly escrow payment, total PITI, and initial deposit at closing. See month-by-month escrow balance, shortage scenarios, and multi-year projections as taxes and insurance increase.
Escrow balance month by month (assumes taxes paid Nov/Dec, insurance paid Jun). Starting balance = initial deposit of $1,033.
| Month | Deposit | Disbursement | Balance |
|---|---|---|---|
| Jan | +$517 | — | $1,550 |
| Feb | +$517 | — | $2,067 |
| Mar | +$517 | — | $2,583 |
| Apr | +$517 | — | $3,100 |
| May | +$517 | — | $3,617 |
| Jun | +$517 | -$1,400 | $2,733 |
| Jul | +$517 | — | $3,250 |
| Aug | +$517 | — | $3,767 |
| Sep | +$517 | — | $4,283 |
| Oct | +$517 | — | $4,800 |
| Nov | +$517 | -$2,400 | $2,917 |
| Dec | +$517 | -$2,400 | $1,033 |
| Year | Annual Tax | Annual Insurance | Monthly Escrow | Total Monthly |
|---|---|---|---|---|
| 1 | $4,800 | $1,400 | $517 | $2,167 |
| 2 | $4,944 | $1,470 | $535 | $2,185 |
| 3 | $5,092 | $1,544 | $553 | $2,203 |
| 4 | $5,245 | $1,621 | $572 | $2,222 |
| 5 | $5,402 | $1,702 | $592 | $2,242 |
| 6 | $5,565 | $1,787 | $613 | $2,263 |
| 7 | $5,731 | $1,876 | $634 | $2,284 |
| 8 | $5,903 | $1,970 | $656 | $2,306 |
| 9 | $6,080 | $2,068 | $679 | $2,329 |
| 10 | $6,263 | $2,172 | $703 | $2,353 |
How to Use This Escrow Calculator
Enter your annual property tax, annual homeowner's insurance premium, and your monthly principal and interest payment. The calculator shows your monthly escrow, total PITI payment, and initial deposit required at closing.
Quick Tab
The Escrow Cushion dropdown controls how many months of escrow are collected upfront. RESPA (the Real Estate Settlement Procedures Act) limits this to 2 months. Most lenders collect 2 months, though some collect more depending on when taxes and insurance are due.
Advanced: Annual Analysis
The month-by-month view shows your escrow account balance throughout the year, assuming taxes are paid in November and December, and insurance is paid in June. Red rows indicate months where the balance is lower — this helps you understand why a cushion is needed.
Professional: Multi-Year Projection
Property taxes and insurance both increase over time. The multi-year projection shows how your total monthly payment grows as these escrow items rise, and what the opportunity cost is of keeping money in an interest-free escrow account.
Escrow Payment Formula
Total Monthly Payment (PITI) =
Principal & Interest + Monthly Escrow
Initial Escrow Deposit =
Monthly Escrow × Cushion Months
Example:
Annual Tax = $5,400 → $450/mo
Annual Insurance = $1,200 → $100/mo
Monthly Escrow = $450 + $100 = $550
Initial Deposit (2 months) = $550 × 2 = $1,100
Your initial deposit at closing includes the cushion plus any prepaid amounts needed to cover upcoming bills. If your insurance renews in 2 months, the lender may collect that premium at closing in addition to the cushion.
Example: New Homeowner in Dallas, TX
The Martinez family buys a $320,000 home
| Annual Property Tax (1.6%) | $5,120 |
| Annual Home Insurance | $1,440 |
| Monthly P&I (6.75%, 30yr) | $1,659 |
| Monthly Tax Escrow | $427 |
| Monthly Insurance Escrow | $120 |
| Monthly Escrow Total | $547 |
| Total Monthly (PITI) | $2,206 |
| Initial Deposit (2 months) | $1,094 |
At year-end analysis, if their tax assessment increased 5% ($256/year), their servicer would increase their monthly escrow by $21/month at renewal to cover the shortfall.