Mortgage Escrow Calculator

Calculate monthly escrow for taxes and insurance, then open the annual-analysis audit when you need shortage, surplus, cushion, or a 12-month balance check.

Estimate monthly escrow

Enter the annual bills your servicer is expected to pay from escrow. Results update instantly.

Annual property tax Annual homeowners insurance Other escrowed items optional Monthly principal & interest optional

Use “other” for annual PMI/MIP, flood insurance, or another item actually paid from escrow.

Monthly escrow estimate

$650.00

Taxes, insurance, and other entered escrowed items spread across 12 months.

$7,800Annual escrowed bills

$1,3002-month federal maximum cushion*

$2,850.00P&I + estimated escrow

$500.00Tax share / month

Monthly escrow breakdown

Tax $500Insurance $150Other $0

*For covered mortgage escrow accounts, Regulation X generally caps the cushion at one-sixth of estimated annual escrow disbursements (two months), or less if applicable documents or law require less.

Audit an annual escrow analysisShortage/surplus · payment reset · 12-month balance

Statement inputs

Use the current balance and current monthly escrow from your servicer statement. The annual bills above are reused.

Current escrow balance Current monthly escrow Cushion months Shortage repayment

Bill timing & official shortage override

Tax installments / year First tax due month Insurance due month Other item due month Official shortage (+) / surplus (−) optional override

This is a planning audit, not a servicer statement. Bill timing, state law, your mortgage documents, and the servicer's aggregate analysis can change the official result.

Audit result

Default example: a $300 estimated shortage spread over 12 months.

$300 shortageEstimated amount below the schedule target.

$650.00New base monthly escrow

+$25.00Temporary shortage recovery / month

$675.00Escrow during recovery

+$75.00Change vs current escrow

$1,300Target starting balance for schedule

$1,300Projected lowest balance

$2,875.00P&I + recovery-period escrow

Projected escrow balance after each month's deposit and scheduled bills

Month	Deposit	Tax	Insurance	Other	Ending balance

If an official shortage is entered above, that amount drives the recovery calculation; otherwise the tool estimates the gap between your current balance and the schedule target. A shortage at least one monthly escrow payment generally may be spread over at least 12 months; your servicer's notice controls the options actually offered.

What the monthly escrow result means

Your base escrow deposit is the annual total of the entered tax, insurance, and other escrowed bills divided by 12. The optional P&I input is shown separately so the calculator does not confuse escrow with loan principal or interest.

Why an annual escrow analysis can change the payment

Servicers project the next computation year, account for bill timing and any permitted cushion, and compare the target with the account balance. A higher tax or insurance bill can permanently raise the base escrow amount; a shortage can add a temporary recovery amount on top.

Use the audit as a cross-check, not a replacement statement

The audit models one computation year from the dates and amounts you enter. Your servicer statement, mortgage documents, applicable law, actual disbursement dates, and any official shortage or surplus control the account.