Estimate a potential mortgage escrow shortage, required
monthly escrow contribution, shortage repayment amount,
and possible new monthly escrow payment based on taxes,
insurance, current balance, and reserve requirements.
Enter Your Escrow Details
Use your latest mortgage or escrow statement
for the most useful estimate.
$
Current amount held in your escrow account.
$
Monthly portion of your mortgage payment going to escrow.
$
Estimated total property taxes for the next 12 months.
$
Annual homeowners insurance paid from escrow.
$
Add mortgage insurance or other expenses paid from escrow, if applicable.
2 months
Estimated reserve based on months of average escrow expenses.
Actual servicer requirements may differ.
Used only to estimate how a shortage could affect monthly escrow.
Your servicer may use different repayment terms.
What Is an Escrow Shortage Calculator?
An Escrow Shortage Calculator helps estimate whether
your mortgage escrow account may have enough money to
cover projected property taxes, homeowners insurance,
and other escrowed expenses while maintaining a selected
reserve amount.
Mortgage escrow payments can change because property
taxes, insurance premiums, and other expenses do not
always remain the same from year to year.
If projected escrow funds are below the amount needed
for future bills and the selected reserve, the difference
is shown as an estimated escrow shortage.
How the Escrow Shortage Calculator Works
1
Enter Your Escrow Balance
Add the current balance and monthly amount
being deposited into your escrow account.
2
Add Annual Expenses
Enter property taxes, homeowners insurance,
and any other escrowed expenses.
3
Review the Estimate
See the estimated shortage, base escrow,
repayment amount, and possible new payment.
If the result is below zero, the calculator shows
no shortage and may display an estimated surplus instead.
Escrow Shortage Calculation Example
Assume your annual property tax is
$4,800 and homeowners insurance
is $1,800.
Annual Property Tax:
$4,800
Annual Insurance:
$1,800
Total Annual Escrow Expenses:
$6,600
Base Monthly Escrow:
$550
Two-Month Reserve:
$1,100
The calculator then compares your projected escrow
balance with the selected reserve. If the projected
balance is below the reserve, the difference is treated
as an estimated shortage.
Why Does an Escrow Shortage Happen?
Property Taxes Increase
Changes in assessed property value, tax rates, exemptions,
or local taxes may increase the amount paid from escrow.
Homeowners Insurance Increases
Insurance premiums can change at renewal, increasing
the amount your escrow account needs to cover.
Previous Monthly Deposits Were Too Low
If your existing monthly escrow contribution was based
on lower projected expenses, the account may not collect
enough to cover higher future bills.
Escrow Reserve Requirements
Your account may also need to maintain a minimum reserve
or cushion. This can increase the amount required even
when annual bills themselves are fully covered.
How an Escrow Shortage Can Affect Your Monthly Payment
When annual escrow expenses rise, the base portion of
your monthly escrow payment may increase even if there
is no existing shortage.
If a shortage also exists, an additional monthly amount
may be needed to repay that shortage.
Estimated New Monthly Escrow =
Required Base Monthly Escrow
+ Monthly Shortage Repayment
This calculator displays only the estimated escrow portion
of your housing payment. It does not include mortgage
principal, interest, HOA dues, or other amounts that may
appear on your full mortgage payment.
Important:
This calculator is an informational estimate and is not
an official mortgage escrow analysis. Your servicer may
calculate escrow requirements differently based on bill
due dates, account activity, servicing rules, reserve
requirements, and other factors.
Escrow Shortage Calculator FAQs
An escrow shortage occurs when the money expected to be available in an escrow account is less than the amount needed to pay projected property taxes, homeowners insurance, and other escrowed expenses while maintaining any required reserve.
Your escrow payment may increase when property taxes, homeowners insurance premiums, or other escrowed expenses rise. Your payment can also increase when a prior escrow shortage must be repaid.
This calculator estimates a projected ending escrow balance using your current balance, monthly escrow deposits, and annual escrow expenses. It then compares the projected balance with your selected reserve requirement.
An escrow cushion is an additional amount that may be maintained in an escrow account to reduce the risk of the balance becoming too low when taxes or insurance bills are paid. Actual lender and servicing requirements can vary.
Depending on your mortgage servicer and applicable requirements, a shortage may sometimes be repaid through additional monthly escrow payments. This calculator lets you estimate repayment over a selected number of months.
No. This calculator provides an estimate only. Mortgage servicers may use payment due dates, account history, required minimum balances, regulatory requirements, and other information that is not included in this simplified calculation.