# Escrow Calculator

### General

The escrow calculator is one of the sections of the loan setup. It can also be accessed in Loan Settings > Escrow inside a customer account.  The escrow calculator is designed to help you compute the per-period escrow amount for a loan.

Note:  Escrow buckets can only be interest bearing if the escrow amount is calculated using the escrow calculator.

#### How To

The escrow calculator can be found by navigating to Account Setup > Setup Terms > Escrow Calculator inside a customer account.

You can use the escrow calculator on any number of the escrow buckets on your account.  First, choose the escrow bucket you want to add escrow for.  Now you have several options to help you compute the escrow amount:

• Percentage Base – This is the base used to compute the total escrow.
• Percentage – This is the percentage of the base that equals the total escrow.
• Total – This should be computed automatically if you entered values for Percentage Base and Percentage.  Otherwise, enter the total escrow amount into this field.
• Pro-Rate 1st Period – If the first period is irregular, you can have the escrow amount for that period change.  The options are:
• Full – Make escrow higher for long periods and lower for short first periods.
• None – The escrow amount will be the same as in other loan periods.
• Short Only – The escrow will only be lowered for short first periods, but won’t be raised for long first periods.
• Extend Final – If the loan exceeds the term (due to missed payments, fees, etc.), choose if escrow should be charged on the extra loan periods that are added to the original term.
• Term – This is the number of loan periods that the total escrow should be divided over.  This will be defaulted to the number entered as the term for the loan.

As was mentioned, you also have access to the escrow calculator in Loan Settings > Escrow > Adjustments when you log a new adjustment.

Note: If the loan is setup with the following escrow settings, Percentage Base = Base Payment Amount AND Escrow Percentage > 0, then another calculation option will be available.

Selecting the calculator icon will automatically populate the Amount by calculating the set percentage of the base payment amount for the chosen Period # & Date.

Note: The escrow calculator is setup to have the exact "Total" amount come due. For example,  if you do an escrow bucket total of $500.00 & a term of 9 then due to rounding, the payments will be$55.56 (500.00/9 = 55.56). But, if you then take 55.56 x 9 you get $500.04, which is$0.04 more than is planned. The escrow calculator takes this into account, so to get an exact amount of $500.00, the calculator will set up a schedule something like this:  Period Adjustment Amount 1$55.56 9 $55.52 10$0.00

For periods 1-8 the amount coming due is $55.56, and for period 9 the amount due is$55.52. This will equal the exact amount of \$500.00.