How to use
- Enter the yearly property tax.
- Enter the yearly homeowner's insurance, or whatever insurance bill you want in the escrow.
- Press Calculate. The hero is the monthly escrow.
- PMI, if you pay it, is the PMI page. Do not hide it inside insurance unless the bill you typed already includes it.
How it's calculated
Annual escrow = tax + insurance. Monthly = that sum ÷ 12.
Either input can be zero. Both at zero is a zero payment, which is a valid way to see the formula.
Worked example
Tax of $3,600 and insurance of $1,200 is $4,800 a year, or $400 a month. Tax alone, with insurance at zero, is $300 a month.
Assumptions
Twelve equal months and the bills you typed. A short year, a bill that changed midyear, or a cushion of two extra months is not added unless those dollars are already in the annual numbers.
FAQ
Is this my whole mortgage payment?
No. Add principal and interest from the mortgage calculator, and PMI if it applies.
What about a shortage?
If the servicer is collecting an extra amount to fill a shortage, add that year's shortage dollars to the annual tax or insurance, or divide the shortage by 12 and add it to the result yourself.
Why is this separate from property tax?
Property tax can start from a rate and a value. Escrow adds the insurance bill to a tax amount you already know.
Does hazard insurance belong here?
Yes, if that is the insurance you typed. The label is the annual insurance dollars, whatever policy they are.