Property Tax & Insurance Escrow Calculator
Most mortgage payments include an escrow amount your servicer collects for property taxes and insurance. This tool separates that piece and estimates the deposit often collected at closing.
Property taxes
Insurance and mortgage insurance
Deposit collected at closing
Servicers typically start the account with a few months of reserves. Your Loan Estimate and Closing Disclosure show the real amounts.
Estimated monthly escrow
$517/mo
About $6,200 a year, collected with your principal and interest and paid out on your behalf.
What the escrow amount covers
Each line is the annual cost divided by twelve.
Property taxes
$4,400 a year
$367/mo
Homeowners insurance
$1,800 a year
$150/mo
Other required policies
$0 a year
$0/mo
Mortgage insurance
$0/mo
Monthly escrow
$517/mo
Estimated escrow deposit at closing
A separate, one-time amount that starts the account — not part of your monthly payment.
- Cushion reserves
- $1,033
- Prepaid taxes (3 mo)
- $1,100
- First-year insurance premiums
- $1,800
- Estimated total deposit
- $3,933
- Effective tax rate
- 1.10%
- Annual escrow total
- $6,200
Want to understand this number?
How this calculator works
Annual property taxes come either from the rate you enter applied to the home price, or from the dollar amount you type in. Insurance premiums are annual figures. Every annual cost is divided by twelve to get the monthly escrow amount, and any monthly mortgage insurance is added on top.
The closing deposit estimate adds the cushion months of taxes and insurance, the months of taxes prepaid based on your closing date, and the first year of insurance premiums.
What it can't tell you
- Assessed value is often not the same as the purchase price, and reassessment after a sale can change your tax bill.
- Exemptions, abatements, special assessments and school or district levies vary widely and are not modelled here.
- Escrow accounts are reviewed annually, so your monthly amount can rise or fall even on a fixed-rate loan.
- Not every loan escrows; some borrowers pay taxes and insurance directly, which changes both the monthly amount and the closing deposit.