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Estimate the cash shortfall when appraisal value is below purchase price.
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An appraisal gap can happen when the appraised value is lower than the purchase price. Because lenders often base loan limits on appraised value, a gap can change cash needed or require renegotiation.
This calculator estimates the appraisal gap, loan amount based on appraised value and LTV, and additional cash needed compared with the original down payment plan.
Use it with the Cash-to-Close Calculator and Affordability Calculator when evaluating offers in competitive markets.
This calculator is for educational and planning purposes only. It is not financial advice, a loan approval, a tax bill, or a lender quote.
Calculator
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Formula
Appraisal gap equals purchase price minus appraised value when positive. Maximum loan is appraised value multiplied by target LTV. Additional cash is purchase price minus maximum loan minus original down payment, not below zero.
If a home sells for $420,000 but appraises at $400,000 with a 90% LTV target, the maximum loan is $360,000. Compared with a $40,000 original down payment, estimated additional cash needed is $20,000.
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Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
Appraisal Gap Calculator is an educational planning tool. Use the result as a starting point, then compare it with written lender, servicer, tax, or closing documents when available.
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