An annual escrow analysis compares the current balance against a required target — the result is either a shortage, a surplus, or (rarely) an exact match.
How it works
The current balance is compared against the target balance. A shortfall is a shortage, commonly repaid over 12 months if the servicer chooses that option rather than a lump sum. An excess is a surplus, which the CFPB source requires be refunded above a minimum threshold.
What this does not include
Servicers have some discretion in how a shortage is repaid — a lump sum, spread over 12 months, or (below a threshold) simply left to self-correct — this calculator shows the 12-month-spread option specifically, not every path a servicer might offer.
How to use this calculator
- Enter your current escrow balance and the required target balance from your escrow analysis statement.
Frequently asked questions
What happens to a surplus?
Per the CFPB source, servicers must refund a surplus above a specified threshold within 30 days of the analysis, rather than holding it or applying it elsewhere.
Why did my escrow payment change even though my rate didn’t?
Property tax or insurance premium changes shift the target balance independently of the loan’s interest rate — an escrow shortage or surplus is a common, separate reason a monthly payment moves.
Can I pay a shortage in one lump sum instead of monthly?
Often, yes — most servicers allow a one-time payment to clear a shortage instead of spreading it across the next 12 months of payments.
