Calcs4All

APR 23 · 2026

Escrow calculator

Estimate monthly escrow from annual property tax, homeowners insurance, and PMI assumptions.

What this calculator covers

Use this escrow calculator to estimate the monthly tax, insurance, and PMI amount that can sit on top of principal and interest in a housing payment.

The walkthrough keeps each escrow component visible separately so the total is easier to audit.

Frequently asked questions

What is an escrow account and why does my lender require one?
An escrow account is a separate fund your mortgage servicer maintains to pay property taxes and homeowners insurance on your behalf when they come due. Lenders often require it to ensure those obligations are met, protecting the collateral securing the loan.
Where do I find my annual property tax and insurance amounts?
Your property tax amount appears on your annual tax bill or the county assessor's website. Your homeowners insurance premium is on your policy declarations page. For a new purchase, the lender's loan estimate will include projected escrow amounts based on initial figures.
Is PMI always included in escrow?
PMI is an optional line in this calculator. If your loan-to-value ratio is above the lender's threshold — typically 80% — your servicer may collect PMI through escrow alongside taxes and insurance. Once you reach sufficient equity, PMI can often be removed; requirements vary by loan type and lender.
Why might my actual escrow payment differ from this estimate?
Lenders are permitted to collect a cushion on top of the basic one-twelfth monthly amount to cover potential shortfalls, and actual tax and insurance amounts change year to year. Servicers conduct an annual escrow analysis and adjust your payment when the collected amount no longer matches projected disbursements.

Tool

Run the calculation

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RESULT · MONTHLY ESCROW

â„–042

Primary result

$800.00

$5,400.00 in annual property tax, $1,800.00 in homeowners insurance, and $2,400.00 in PMI add up to about $800.00 per month in escrowed housing costs.

Monthly tax escrow
$450.00
Monthly insurance escrow
$150.00
Monthly PMI escrow
$200.00
Total monthly escrow
$800.00

Step-by-step solution

  1. 1.Divide annual property tax by 12 to estimate $450.00 of monthly tax escrow.
  2. 2.Divide annual insurance by 12 to estimate $150.00 of monthly insurance escrow.
  3. 3.Divide annual PMI by 12 to estimate $200.00 of monthly PMI escrow.

Walkthrough

Visual walkthrough

Escrow converts annual housing costs into a monthly collection amount so taxes and insurance can be paid when they come due.

  1. 01

    Convert property tax into a monthly amount

    $5,400.00 ÷ 12 = $450.00

    Property taxes are usually the biggest escrow component on an owner-occupied mortgage.

  2. 02

    Convert insurance and PMI into monthly amounts

    Homeowners insurance and PMI can also be spread across monthly payments instead of paid as separate annual bills.

    $350.00 monthly insurance + PMI

  3. 03

    Combine the escrow stack

    The total monthly escrow is the amount that may sit on top of principal and interest in the mortgage payment.

    $800.00 total escrow