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How to use
- Enter Annual taxes.
- Enter Annual insurance.
- Calculate, then review what is included in the definition before making a financial decision.
How it is calculated
Monthly estimate = (annual taxes + annual insurance) ÷ 12
Example
Taxes of 9,600 plus insurance of 4,800 total 14,400 annually or 1,200 monthly for planning.
Important notes
This is an annual average only. Actual escrow accounts may include reserves, adjustments or additional items and can change over time.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Annual total | 9600 + 4800 | 14,400 |
| Monthly | 14400 ÷ 12 | 1,200 |
Frequently asked questions
Is this exactly what a lender will collect?
Not necessarily. A lender may add reserves or re-estimate taxes and insurance.
Is this a loan approval or credit decision?
No. This is a numerical calculator only; lenders may use different income, debt, appraisal and fee policies.
Should I use gross or net income?
Use the income type named by the field. Do not substitute net for gross because it changes the denominator and result.