Finance category
Mortgage, loan, investing, tax, and money calculators.
Escrow Refund Calculator
After a refinance or sale, the escrow account from the old loan is closed and the balance refunded to you. This calculator estimates the refund based on accumulated escrow plus RESPA cushion.
RESPA allows up to 2 months
Estimated escrow refund
$4,754
mailed after payoff
Monthly escrow funding
$679
Built up since last disbursement
$3,396
Cushion held
$1,358
How the math works
When you refinance or sell, the old escrow account balance is mailed back to you separately from the closing wire. Expect the check 30–45 days after payoff. The balance equals what's been accumulating since the last tax/insurance disbursement, plus the RESPA cushion.
If closing lands right before a scheduled tax disbursement, the old servicer may pay the bill first and refund what's left — so the refund is smaller. Ask your old servicer for a pro forma.
How to Use
- Enter annual property tax and annual homeowners insurance.
- Enter cushion months held — RESPA caps this at 2 months of escrow items.
- Enter months since the last tax/insurance disbursement. If tax was paid in January and you close in July, that's 6 months.
- The calculator approximates the refund check you should expect from the old servicer.
Frequently Asked Questions
How long until I get the refund?
Federal law requires servicers to mail the refund within 20 business days of payoff, but most take 30–45 days. Some send ACH direct deposit if enrolled; others mail paper checks.
Why is the refund different from my current escrow balance?
The servicer may pay pending tax or insurance bills before closing out the account. If tax is due in a month and they pay it, the refund drops. Ask for a payoff statement that itemizes intended disbursements.
Is the refund taxable?
No. It's a return of your own money, not income. The property tax and insurance portions that were deducted in prior years may need to be reduced in the year of refund if you claimed them on Schedule A, but that's edge-case.
What if my escrow account was short?
If you were in shortage, you won't get a refund. Worse, the new loan at a refi pays off the old loan principal plus any escrow shortage. Check the payoff quote carefully.
Related Calculators
Refi Cash to Close Calculator
Total wire amount at refi closing.
Escrow Calculator
Monthly escrow funding on the new loan.
Escrow Shortage Calculator
When escrow accounts run short.
Escrow Cushion Calculator
Size the RESPA cushion.
Seller Net Sheet Calculator
Seller-side refund calculation.
Property Tax Calculator
Size property tax itself.
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Escrow Cushion Calculator
Calculate the RESPA-allowed escrow cushion (up to 2 months) your servicer can hold on your impound account.
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