Follow the default numbers.
With the example inputs shown above, the model gives cash needed to close: $134,000.
The formula is cash to close = price − ltv × lesser of price and appraisal + costs. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
The lender uses the lower value
The modeled maximum loan applies the entered LTV to the lesser of offer price and appraisal. Cash required for the purchase is offer price less that loan, plus closing costs. The extra appraisal-related cash compares this amount with cash needed if the property appraised at the offer. It is usually less than the full price gap when LTV is below one hundred percent.
Do not add the gap twice
A price gap is already inside price minus the constrained loan. Adding the entire gap again to that cash result overstates the requirement. The result separates the nominal price gap, the incremental financing shortfall and total modeled cash to close. Earnest money already paid can reduce the final wire amount, but it does not reduce total buyer cash committed.
A contract cap is a negotiation term
The appraisal-gap cap input indicates whether the nominal gap exceeds the entered protection. It does not interpret the contract or determine whether a seller must reduce the price. Financing programs and lender conditions can change the actual approved loan. Obtain legal advice on contingency language and confirm the updated loan worksheet before waiving protections.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.