Escrow Cushion Check
Compare a projected escrow cushion with a caller-supplied month limit.
Description
An escrow cushion expresses projected minimum balance relative to monthly disbursement needs.
An escrow cushion expresses projected minimum balance relative to monthly disbursement needs. Applicable limits must be supplied separately.1
Compare a projected escrow cushion with a caller-supplied month limit.
When to use Escrow Cushion Check
Use this tool to compare a projected escrow cushion with a caller-supplied month limit.
Prepare the supplied account terms, common-currency amounts or recorded indicators requested. Determine applicable thresholds separately.
How to use Escrow Cushion Check and understand its results
- Prepare the supplied account terms, common-currency amounts or recorded indicators requested. Determine applicable thresholds separately.
- Enter annualDisbursements, projectedMinimumBalance, maximumCushionMonths using the field table and calculation rules, then run the tool.
- Read allowedCushion, actualCushionMonths, withinCallerLimit. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| annualDisbursements | Annual disbursements (currency/year) | number; minimum: 0 | Required |
| projectedMinimumBalance | Projected minimum balance (currency) | number | Required |
| maximumCushionMonths | Maximum cushion (months) | number; minimum: 0 | Required |
Enter nonnegative annual disbursements/maximum months and signed projected balance. Return allowed cushion, actual months and inclusive balance≤allowed gate.
monthly=annual/12; allowed=monthly×maximumMonths Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| allowedCushion | Allowed cushion (currency) | number; minimum: 0 |
| actualCushionMonths | Actual cushion (months) | number |
| withinCallerLimit | Within caller limit | boolean |
{
"input": {
"annualDisbursements": 6000,
"projectedMinimumBalance": 900,
"maximumCushionMonths": 2
},
"output": {
"allowedCushion": 1000,
"actualCushionMonths": 1.8,
"withinCallerLimit": true
}
}Limitations and assumptions
Zero disbursements returns actual months zero as a placeholder. Negative balances can pass the upper-limit gate; no shortage or legal compliance is assessed.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Deposit Account Comparison: Compare two deposit accounts from balances, disclosed APYs, and annual fees. For a complementary task, use Investor Threshold Screen: Apply caller-supplied investor thresholds; the caller owns jurisdiction and period rules.
References
-
Escrow Cushion Check — tool.io
Similar or alternative tools
- Deposit Account Comparison
Compare two deposit accounts from balances, disclosed APYs, and annual fees.
- Investor Threshold Screen
Apply caller-supplied investor thresholds; the caller owns jurisdiction and period rules.