Escrow Calculator
Your mortgage payment is more than principal and interest: lenders bundle property tax and homeowners insurance into an escrow account, collecting 1/12 each month and paying the bills for you. This calculator shows what that adds to your monthly payment.
How to use this calculator
- Enter home value.
- Enter property tax rate.
- Enter annual homeowners insurance premium.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Escrow is simple arithmetic: annual property tax (home value × tax rate) plus annual insurance, divided by 12, added to your principal-and-interest payment. Lenders also keep a small cushion, so the exact amount can run slightly higher — and the tax bill itself comes from your county assessor, not this estimate.
Frequently asked questions
Is escrow optional?
Lenders typically require it when you put down less than 20%. With 20% or more down you can often manage the bills yourself and skip the escrow account entirely.
Why does my escrow payment change every year?
Because property taxes and insurance premiums change. Each year the lender does an escrow analysis and adjusts your monthly payment to cover the new bills — and to fix any shortage or refund any surplus.
What happens at closing?
You pre-pay the first year's taxes and insurance (plus the lender's cushion, typically 2 months) at closing, which is why closing costs can be several thousand dollars on top of the down payment.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.