Mortgage Calculator With Escrow: Payment With Tax and Insurance

This calculator works out a monthly mortgage payment that includes property tax and home insurance collected in escrow. Enter the home price, the down payment percent, the APR, the term, and the yearly tax and insurance; you get the total monthly payment, its principal-and-interest part, the escrow part and the loan amount.

Formula

Loan L = price × (1 − down % ÷ 100). Principal and interest = L × r ÷ (1 − (1 + r)⁻ⁿ), r = APR ÷ 1200, n = years × 12. Escrow = (yearly tax + yearly insurance) ÷ 12. Total = principal and interest + escrow.

Worked Example

A $350,000 home with 20% down, 6.5% APR, 30 years, $4,200 a year of property tax and $1,500 of insurance.

Loan = 350,000 × 0.80 = $280,000.00
Principal and interest = 280,000 × 0.00541667 ÷ (1 − 1.00541667⁻³⁶⁰) = $1,769.79
Escrow = (4,200 + 1,500) ÷ 12 = $475.00
Total = 1,769.79 + 475.00 = $2,244.79

Assumptions

Results use the exact level payment before rounding to the cent; a lender’s cent-rounded schedule can differ by a few cents.
Fixed interest rate for the whole term; payments of equal size at the end of each month.
Interest compounds monthly at APR ÷ 12.
No fees, taxes or insurance unless the calculator has a field for them.
Mortgage insurance (PMI), HOA dues and flood insurance are not included.
Tax and insurance stay the same every year; in practice they change and the escrow is re-set.

How to read the result

The principal-and-interest part is fixed for a fixed-rate loan; the escrow part moves when tax bills or insurance premiums change.

Limits and common mistakes

Enter yearly amounts for tax and insurance, not monthly.
With less than 20% down, many lenders add mortgage insurance; add it to the yearly insurance field to include it.

Frequently Asked Questions

What is the payment on a $350,000 home with 20% down at 6.5%?

About $1,769.79 for principal and interest, plus $475 of escrow: about $2,244.79 a month.

What is escrow?

An account the lender uses to pay your property tax and insurance from part of each monthly payment.

Why did my payment change on a fixed-rate loan?

Usually because the tax or insurance in escrow changed.

Formula used

in price | Home price | $ | 350000 | 1 | 100000000
in dp | Down payment | % | 20 | 0 | 99
in apr | Interest rate (APR) | % | 6.5 | 0.01 | 100
in yrs | Loan term | years | 30 | 1 | 50
in tax | Property tax per year | $ | 4200 | 0 | 10000000
in ins | Home insurance per year | $ | 1500 | 0 | 10000000
out tot | Monthly payment with escrow | $ | price * (1 - dp / 100) * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)) + tax / 12 + ins / 12 | 2
out pni | Principal and interest | $ | price * (1 - dp / 100) * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)) | 2
out esc | Escrow (tax and insurance) | $ | (tax + ins) / 12 | 2
out loan | Loan amount | $ | price * (1 - dp / 100) | 2

Each line is one input (in, sel, list) or one result (out: label, unit, formula, decimals). How the calculators work

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Method: the standard loan formula for this calculation, fixed rate and monthly compounding unless stated, rounded as each result states. Not financial advice; no lender, rate or product is recommended. See formulas and assumptions, the disclaimer or report an error.