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Appraisal Gap Calculator

Estimate the cash shortfall when a home's appraisal falls below your contract price, helping buyers plan for closing costs.

Quick answer: Estimate appraisal-gap cash using the lower of contract price or appraised value and an entered LTV assumption. Enter Contract Price, Appraised Value, and Planned Down Payment to personalize the estimate. It returns Appraisal Gap, Loan Amount at Entered LTV Scenario, and Total Cash Needed to Close at Contract Price so you can compare the impact before choosing a next step. Use it to compare payment, equity, rate, and timing tradeoffs before applying or changing a loan.

SWReviewed by SwitchWize Research Desk · Last reviewed July 20, 2026
Appraisal Gap
$20,000
Appraisal Gap
$20,000
Loan Amount at Entered LTV Scenario
$344,000
Total Cash Needed to Close at Contract Price
$106,000
Extra Cash Beyond Your Planned Down Payment
$16,000
Diagnostic

The appraisal gap is $20,000; the entered LTV scenario produces a loan amount of $344,000.

To close at the full contract price, you'd need about $16,000 in cash beyond your planned down payment.

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What to do next

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Your action plan
  1. 1

    Set the target and timeline for this plan

    Estimate appraisal-gap cash using the lower of contract price or appraised value and an entered LTV assumption.

  2. 2

    Pressure-test one alternate scenario before deciding

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

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About mortgage rates

Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates, your actual rate will vary.

For a personalized rate comparison, use the tool below to see lenders ranked by APR, loan type, and your profile.

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Frequently Asked Questions

Everything you need to know.

What does an example Appraisal Gap Calculator calculation look like?
Using this calculator's own default assumptions, a contract price of $450,000, appraised value of $430,000 and planned down payment of 20% produces an estimated appraisal gap of $20,000 and loan amount at entered ltv scenario of $344,000. Enter your own numbers above to see how it changes for your situation.
Why does the loan amount drop when a home appraises below contract price?
Lenders base the loan on the lower of the contract price or appraised value to protect themselves; they won't lend more than the property is worth. If the appraisal is lower, your loan shrinks, shifting more of the purchase price to you as cash.
What should I do if the appraisal gap is larger than my extra cash available?
You have several options: negotiate the price down with the seller, request the seller cover part of closing costs, increase your down payment, or walk away if the numbers don't work. This calculator helps you see which option is feasible before you're at the closing table.
Is the Appraisal Gap Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Appraisal Gap Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare mortgage lenders, or run Money Map to compare this home & mortgage decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

When a property appraises lower than the purchase price, lenders reduce the loan amount based on the appraised value rather than what you agreed to pay. This creates a gap you must cover in cash at closing. Understanding this gap upfront helps you verify you have enough liquidity to close without renegotiating or walking away.

How to Use It

  1. 1Enter the purchase price you agreed to pay for the home.
  2. 2Enter the appraised value provided by the lender's appraiser.
  3. 3Enter your planned down payment as a percentage of the contract price.
  4. 4Review the appraisal gap, the loan amount under your LTV scenario, total cash needed at contract price, and how much extra cash beyond your down payment you'll need.
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