Appraisal Gap Bridge Budget Calculator

Evaluate how a low appraisal shifts cash requirements and bridge loan sizing before closing. Enter the contract price, appraised value, and available cash to quantify the appraisal gap, minimum cash to close, additional dollars above your planned down payment, and the bridge financing and interest needed to keep the transaction alive. Optional lender LTV, down-payment, rate, and term inputs let you match the quote you're negotiating.

Agreed purchase price from the signed real estate contract.
Fair market value determined by the lender's appraisal.
Liquid funds earmarked for down payment and closing costs.
Optional — defaults to 80.00% when blank. Represents the lender's maximum loan-to-value ratio.
Optional — defaults to 20.00% when blank. Use to compare added cash needs versus your original plan.
Optional — defaults to 9.00% when blank. Used for interest-only payment estimates.
Optional — defaults to 12 months when blank. Multiplies the monthly interest payment to estimate total interest.

For planning conversations with your lender and real estate advisor. Verify program-specific underwriting rules and bridge loan terms before committing funds.

Examples

  • Example 1 — $620,000.00 contract, $580,000.00 appraisal, $70,000.00 cash, 80.00% max LTV, 10.00% planned down payment, defaults for rate and term ⇒ Appraisal gap: $40,000.00 (USD) | Minimum cash to close: $156,000.00 (USD) | Extra cash needed above plan: $94,000.00 (USD) | Cash shortfall after available funds: $86,000.00 (USD) | Suggested bridge loan amount: $86,000.00 (USD) | Interest-only payment at 9.00%: $645.00 (USD) per month | Total interest over 12 months: $7,740.00 (USD) | Effective closing LTV: 74.84%
  • Example 2 — $485,000.00 contract, $490,000.00 appraisal, $120,000.00 cash, optional inputs blank ⇒ Appraisal gap: $0.00 (USD) | Minimum cash to close: $97,000.00 (USD) | Extra cash needed above plan: $0.00 (USD) | Cash shortfall after available funds: $0.00 (USD) | Suggested bridge loan amount: $0.00 (USD) | Interest-only payment at 9.00%: $0.00 (USD) per month | Total interest over 12 months: $0.00 (USD) | Effective closing LTV: 80.00%

FAQ

How do seller concessions impact the results?

Subtract any confirmed seller credits from the contract price before running the calculation so minimum cash to close reflects concessions.

Can I test multiple lender LTV limits?

Yes. Adjust the maximum LTV input to compare conventional, FHA, or jumbo program requirements and see how each changes the bridge amount.

What if I plan to appeal the appraisal?

Enter your target revised appraisal value to estimate how much of the gap could disappear if the reconsideration succeeds.

Does the tool include closing costs?

Add expected closing costs to the contract price or reduce your available cash input accordingly so the calculation covers the full cash to close.

How do I reflect gift funds or grants?

Increase the buyer cash available input by the amount of verified gift funds or grants so the calculator shows the remaining shortfall after assistance.

Additional Information

  • Lenders typically lend against the lower of purchase price or appraised value, so appraisal gaps force buyers to contribute additional cash.
  • Planned down payment percent benchmarks how much extra cash beyond your original strategy is required when the appraisal comes in low.
  • Bridge loan interest calculations assume interest-only payments, a common structure for short-term financing during closing delays.
  • Effective closing loan-to-value reveals how the appraisal changes leverage and potential mortgage insurance requirements.
  • Outputs display in USD by default, but the model works in any currency when all amounts stay consistent.
  • The tool assumes lender-paid private mortgage insurance is not financed; adjust cash available if premiums are due at closing.

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