Escrow Shortage Calculator


In today’s fast-paced financial landscape, understanding escrow shortages is crucial for homeowners and lenders alike. To simplify this process, we’ll provide a step-by-step guide on how to utilize an escrow shortage calculator effectively.

How to Use

Using our escrow shortage calculator is straightforward. Simply input the required information, such as your loan amount, annual property taxes, and insurance costs. Then, click the “Calculate” button to obtain the precise calculation of your escrow shortage.


The formula used in our calculator is derived from the standard escrow analysis formula:

Example Solve

Let’s consider an example:

  • Loan Amount: $200,000
  • Annual Property Taxes: $2,400
  • Annual Insurance Costs: $800
  • Total Escrow Funds: $2,500
  • Number of Months in Escrow: 12

By plugging these values into our calculator, we find the escrow shortage to be $66.67.


Q: What is an escrow shortage?
An escrow shortage occurs when there are insufficient funds in your escrow account to cover taxes and insurance.

Q: How is an escrow shortage calculated?
The shortage is calculated by subtracting the total escrow funds from the sum of annual property taxes and insurance costs, divided by the number of months in escrow.

Q: What should I do if I have an escrow shortage?
If you have an escrow shortage, you may need to make up the deficit by increasing your monthly escrow payments or paying a lump sum.


Navigating escrow shortages can be complex, but with the help of our calculator, you can gain clarity on your financial situation. By understanding how escrow shortages are calculated, you can make informed decisions to manage your escrow account effectively.

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