FINANCIAL · ESCROW
Escrow Calculator
Calculate your monthly escrow payment for property tax and homeowner's insurance. Add your P&I payment to see your full PITI mortgage payment in seconds.
About This Calculator
Enter your annual property tax and homeowner's insurance to see your monthly escrow payment. Optionally add your monthly principal and interest (P&I) to calculate your full PITI payment — the all-in monthly cost of owning your home.
How It Works
When you have a mortgage with escrow, your lender collects a portion of your annual property tax and homeowner's insurance each month. These funds are held in an escrow account and paid to the taxing authority and insurance company on your behalf when the bills come due. Your monthly escrow is simply your total annual costs divided by 12. Adding your monthly principal and interest payment (P&I) gives you the full PITI — the total monthly payment sent to your lender.
The Formula
Monthly Escrow = (Annual Tax + Annual Insurance) ÷ 12 PITI = P&I + Monthly Escrow
- Annual Tax
- Annual property tax assessed on your home
- Annual Insurance
- Annual homeowner's insurance premium
- P&I
- Monthly principal and interest payment from your mortgage amortization
Frequently Asked Questions
- What is an escrow account?
- An escrow account is a third-party account managed by your mortgage servicer. Each month, a portion of your mortgage payment goes into escrow, and the servicer uses those funds to pay your property taxes and homeowner's insurance when they come due. This ensures those bills are paid on time even if you don't have the lump sum on hand.
- What does PITI stand for?
- PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical mortgage payment. Principal and Interest (P&I) repay the loan itself; Taxes (T) is the property tax escrow portion; and Insurance (I) is the homeowner's insurance escrow. Some lenders include mortgage insurance (PMI) and HOA fees in the monthly total as well.
- Is escrow required?
- Most conventional lenders require an escrow account when your loan-to-value ratio is above 80% (i.e., you made less than a 20% down payment). FHA and VA loans also require escrow. If you made a large down payment and have excellent credit, some lenders will waive the escrow requirement — but you'll then be responsible for paying taxes and insurance directly when due.
- Why does my monthly payment change if my escrow is fixed?
- Your escrow amount is recalculated annually when your servicer performs an escrow analysis. If your property tax assessment increases or your insurance premium changes, your required monthly escrow changes, and your total payment adjusts accordingly. Escrow accounts also maintain a small cushion (typically 2 months' worth of payments) required by RESPA.
- Should I include HOA fees in my escrow calculation?
- It depends on your lender and HOA agreement. Some lenders escrow HOA fees; many do not. If your servicer does not escrow HOA fees, you'll pay them separately — typically quarterly or annually. Use the optional HOA field in this calculator to include HOA in your total monthly housing cost estimate.