Free Escrow Payment Calculator
Calculate the monthly escrow amount your lender collects for property taxes and homeowner insurance.
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Total Monthly PITI
$2,650.00
Monthly Escrow Collection$550.00
Monthly Tax Escrow$400.00
Monthly Insurance Escrow$150.00
Annual Escrow Disbursements$6,600
Required Escrow Cushion$1,100
Total Monthly PITI vs Lender Cushion (months)
How Escrow Accounts Work
Your lender collects a portion of property taxes and insurance each month and holds it in an escrow account, paying the bills when they come due.
Monthly Escrow Calculation
Monthly Escrow = (Annual Taxes + Annual Insurance + Annual PMI + Annual HOA) / 12
Escrow Cushion
Federal law (RESPA) allows lenders to maintain a cushion of up to 2 months of escrow payments to protect against increases.
PITI Explained
Your total monthly housing cost (PITI) is what lenders use to calculate your debt-to-income ratio.
Example Calculation
Annual taxes $4,800, insurance $1,800, no PMI or HOA. P&I payment is $2,100. Lender requires 2-month cushion.
- 01Monthly tax escrow: $4,800 / 12 = $400
- 02Monthly insurance escrow: $1,800 / 12 = $150
- 03Monthly escrow collection: $400 + $150 = $550
- 04Total PITI: $2,100 + $550 = $2,650
- 05Annual escrow disbursements: $4,800 + $1,800 = $6,600
- 06Required cushion: $550 x 2 = $1,100