Finance category
Mortgage, loan, investing, tax, and money calculators.
Escrow Cushion Calculator
Your mortgage servicer holds a cushion on your escrow account — up to 2 months of escrow items under RESPA. This calculator sizes the cushion and the max escrow balance above which refunds are required.
RESPA max is 2 months
Monthly escrow deposit
$717
RESPA cushion held
$1,433
Max escrow balance
$2,150
above this triggers refund
Annual escrow items
$8,600
How the math works
Under RESPA, servicers can hold at most 2 months of escrow items as a cushion above the monthly deposit. If the escrow analysis shows a surplus above cushion plus monthly, the servicer must refund the excess (if over $50) or apply it to payments.
The 2-month cushion protects the servicer from tax/insurance payment timing shortfalls and from unexpected premium increases. Some state laws restrict cushion further (Vermont and others). Your payment coupon typically shows the cushion explicitly.
How to Use
- Enter annual property tax and homeowners insurance.
- Enter any additional escrow items (flood, HOA, mortgage insurance).
- Enter cushion months — 2 is the max under federal law.
Frequently Asked Questions
Why does the servicer keep a cushion?
To protect against tax or insurance premium increases between escrow analyses and to cover timing mismatches between your monthly deposits and the annual/semiannual payment of tax and insurance. Protects servicer from having to advance funds.
What triggers a cushion refund?
Annual escrow analysis (servicer does once/year, federally required). If surplus exceeds $50 above cushion + monthly, servicer refunds. Smaller surpluses are held or applied to next payment.
Can I ask for more or less cushion?
Less, potentially. Some states (Vermont, e.g.) cap cushion below 2 months. You can request cushion reduction with some servicers but most decline outside state law. More cushion isn't allowed under RESPA.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Escrow Calculator
Estimate the monthly escrow add-on for taxes, insurance, and mortgage insurance, plus the cushion deposit collected at closing.
Next calculator
Escrow Refund Calculator
Estimate the escrow refund mailed to a seller or refinancing borrower after the old loan is paid off.