Escrow Calculator — Calculate Your Monthly Escrow Payment

Annual Property Tax ($)Enter a valid amount.

Annual Homeowners Insurance ($)Enter a valid amount.

Monthly PMI ($, if applicable)

Monthly Escrow Payment

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How to Use This Tool

Enter your annual property tax and annual homeowners insurance amounts.
Enter your monthly PMI, if applicable.
Click Calculate for your total monthly escrow payment.

What Is an Escrow Account?

Many mortgage lenders require an escrow account, collecting a portion of your annual property tax and homeowners insurance costs with each monthly mortgage payment, then paying these bills on your behalf when they come due.

Monthly Escrow = (Annual Property Tax + Annual Insurance) ÷ 12 + Monthly PMI (if applicable)

Why Lenders Require Escrow

Escrow protects the lender's investment by ensuring property taxes and insurance stay current — an unpaid tax bill could result in a lien on the property, and lapsed insurance leaves the home (and the lender's collateral) unprotected.

Your Total Monthly Payment

Your escrow payment is added to your principal and interest payment to form your total monthly mortgage payment, often called PITI (Principal, Interest, Taxes, Insurance).

Escrow Adjustments

Lenders periodically review your escrow account and adjust your payment if actual tax or insurance costs have changed from their estimate — this is why your monthly payment can increase even with a fixed-rate mortgage.

Frequently Asked Questions

Why did my mortgage payment increase even though I have a fixed rate?

This is usually due to an escrow adjustment — if your property taxes or insurance premiums increased, your lender raises your monthly escrow contribution accordingly, even though your principal and interest payment stays the same.

Can I avoid having an escrow account?

This depends on your loan type and down payment — many loans require escrow, especially with less than 20% down, though some conventional loan borrowers with sufficient equity can opt to pay taxes and insurance directly themselves.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.