Use the free Amortization Calculator With Escrow on ToolVexa to see your full monthly housing payment, including the part set aside for property taxes and insurance. Enter your loan amount, interest rate, term and monthly escrow, press Calculate, and your result appears straight away.
How to Use
Enter the amount you borrowed, the annual interest rate as a percentage, and the loan term in years. Then enter the monthly escrow amount your lender collects for taxes and insurance. Press Calculate to see the principal-and-interest payment, the escrow amount and the combined monthly payment.
Formula in Plain Words
First, the monthly interest rate is the annual rate divided by 12. The principal-and-interest payment spreads the loan over the total number of monthly payments, with interest charged on the remaining balance each month. Then the monthly escrow is added on top, because escrow is collected separately from principal and interest. Total monthly payment equals principal and interest plus monthly escrow.
Worked Example
For a $200,000 loan at 6% over 30 years, the principal-and-interest payment is $1,199.10 per month. With $300 per month in escrow, the total monthly payment is $1,499.10. Over the full loan, the total interest is $231,676.38. Your own result will change if any input changes, so try different rates and terms to compare.
FAQs
What is escrow? Escrow is money your lender collects each month and holds to pay property taxes and homeowners insurance when they fall due.
Does escrow change? Yes. Tax and insurance costs can change, so the escrow part of your payment can be adjusted even if principal and interest stay the same.
Is this an exact lender quote? No. This is an estimate for planning. Your lender’s figures, fees and escrow rules may differ.