Gap Payout Shortfall Calculator
Reconcile actual loan payoff/primary settlement and explicit excluded loan components/gap cap; no inferred deductible financing policy, debt coverage entitlement or settlement valuation.
Description
A loan settlement shortfall differs from the amount eligible under a gap policy.
A loan settlement shortfall differs from the amount eligible under a gap policy. Explicit exclusions and a limit can leave debt unpaid.1
The returned values include Gross loan settlement shortfall minor, Caller eligible gap shortfall minor, Caller capped gap payout minor, Remaining loan shortfall minor. The How section below explains the calculation, input rules and interpretation.
When to use Gap Payout Shortfall Calculator
Use Gap Payout Shortfall Calculator when you need to evaluate the supplied records under the calculation and evidence rules below. No settlement valuation, deductible-financing rule or debt coverage entitlement is supplied.
Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
How to use Gap Payout Shortfall Calculator and understand its results
- Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
- Enter observedLoanPayoffMinor, observedPrimarySettlementMinor, callerExcludedLoanAmountsMinor, callerGapLimitMinor using the field table and calculation rules, then run the tool.
- Read grossLoanSettlementShortfallMinor, callerEligibleGapShortfallMinor, callerCappedGapPayoutMinor, remainingLoanShortfallMinor. 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 |
|---|---|---|---|
| observedLoanPayoffMinor | Observed loan payoff minor | number | Required |
| observedPrimarySettlementMinor | Observed primary settlement minor | number | Required |
| callerExcludedLoanAmountsMinor | Caller excluded loan amounts minor | list of number | Required |
| callerGapLimitMinor | Caller gap limit minor | number | Required |
Enter integer payoff, settlement, exclusion entries and gap limit 0–10¹² each; exclusions may be empty. Return gross shortfall, eligible shortfall, capped payment and gross-minus-payment remaining debt.
gross=max(0,payoff−settlement); eligible=max(0,gross−sum(exclusions)); payment=min(eligible,limit) Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| grossLoanSettlementShortfallMinor | Gross loan settlement shortfall minor | number |
| callerEligibleGapShortfallMinor | Caller eligible gap shortfall minor | number |
| callerCappedGapPayoutMinor | Caller capped gap payout minor | number |
| remainingLoanShortfallMinor | Remaining loan shortfall minor | number |
{
"input": {
"observedLoanPayoffMinor": 15000,
"observedPrimarySettlementMinor": 10000,
"callerExcludedLoanAmountsMinor": [
500,
1000
],
"callerGapLimitMinor": 10000
},
"output": {
"grossLoanSettlementShortfallMinor": 5000,
"callerEligibleGapShortfallMinor": 3500,
"callerCappedGapPayoutMinor": 3500,
"remainingLoanShortfallMinor": 1500
}
}Limitations and assumptions
No settlement valuation, deductible-financing rule or debt coverage entitlement is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries; string lists to 128 strings of at most 128 characters each. The rules above may impose smaller limits. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Total Loss ACV vs Repair Threshold Checker: A total-loss threshold scenario compares repair evidence with a fraction of independently established actual cash value. Salvage inclusion is an explicit policy choice. For a complementary task, use Replacement Cost vs ACV Payout Compare Tool: ACV and replacement-cost scenarios differ by depreciation and replacement evidence. This calculation applies deductible before the limit.
References
-
Gap Payout Shortfall Calculator — tool.io
Similar or alternative tools
- Total Loss ACV vs Repair Threshold Checker
A total-loss threshold scenario compares repair evidence with a fraction of independently established actual cash value. Salvage inclusion is an explicit policy choice.
- Replacement Cost vs ACV Payout Compare Tool
ACV and replacement-cost scenarios differ by depreciation and replacement evidence. This calculation applies deductible before the limit.