- Enter your lender payoff amount from the payoff statement.
- Enter the claim settlement estimate from your primary insurer.
- Set whether your settlement already includes the deductible.
- Choose a cap method and adjust percent or fixed limits.
- Add non-covered items, fees, or taxes only when applicable.
- Review the breakdown, then export CSV or PDF.
| Adjusted Payoff | Adjusted Payoff = Payoff + Fees + Taxes |
| Net Settlement | Net Settlement = Settlement − Deductible (if gross) |
| Shortfall Before Coverage | Shortfall = Adjusted Payoff − Net Settlement |
| Eligible Shortfall | Eligible = max(0, Shortfall − NonCovered) |
| Coverage Cap |
Percent cap: Cap = max(0, (ACV × % ) − Net Settlement) Fixed cap: Cap = Fixed Max Benefit |
| Coverage Payment | Payment = min(Eligible, Cap) |
| Remaining Loan After Coverage | Remaining = max(0, Shortfall − Payment) |
| Net Out-of-Pocket | Net OOP = max(0, Remaining − Deductible Reimbursement) |
| Scenario | Payoff | Settlement | Deductible | Non-covered | Cap | Payment | Net OOP |
|---|---|---|---|---|---|---|---|
| Typical shortfall | $28,000 | $22,000 | $1,000 | $0 | $6,500 | $6,000 | $0 |
| Exclusions apply | $28,000 | $22,000 | $1,000 | $800 | $6,500 | $5,200 | $1,000 |
| Lower cap | $28,000 | $22,000 | $1,000 | $0 | $3,000 | $3,000 | $3,000 |
| Settlement covers payoff | $20,000 | $21,000 | $0 | $0 | $0 | $0 | $0 |
| Fixed max benefit | $32,000 | $25,000 | $1,000 | $0 | $5,000 | $5,000 | $2,000 |
Quantifying the payoff gap
Start with the lender payoff, then add any allowed fees or taxes to build an adjusted payoff. Use the payoff quote date for better accuracy; interest may accrue daily. Compare that figure with the net settlement available after your deductible. If payoff is $28,000 and net settlement is $21,000, the gap-driven shortfall begins at $7,000. When uncertain, request a written payoff quote and confirm whether interest will continue until the check clears fully.
Understanding settlement netting
Claims paperwork is often confusing because some estimates are gross and some are net. When the settlement is gross, subtract the deductible once to approximate cash applied to the loan. When the settlement is already net, do not subtract again. This choice can shift results by $500–$2,000 in many markets.
Modeling coverage caps and exclusions
Many contracts cap benefits as a percent of vehicle value, such as 125% or 150%. The calculator estimates a cap as (value × percent) minus net settlement, then limits payment to the eligible shortfall. Enter non-covered items like past-due payments, extended warranties, or carryover balances so your estimate stays realistic. Exclusions commonly run $0–$2,500, depending on financing.
Scenario sensitivity and lender add-ons
Small add-ons can change outcomes. Adding $250 in fees increases shortfall dollar-for-dollar if coverage does not include them. A higher value input reduces cap pressure, while a lower value tightens the cap. Fixed-max policies behave differently, paying up to a stated limit regardless of value. Watch the loan-to-value metric: an LTV above 110% typically signals higher shortfall risk after a total loss.
Turning results into next steps
Use the summary KPIs to plan cash flow. If the expected payment is $5,200 on a $6,000 eligible shortfall, you may still owe $800 plus any excluded items. Consider whether deductible reimbursement applies and whether it shares the same benefit cap. Run a “best case” and “worst case” by adjusting value and exclusions. Export the report to share with a lender, adjusters, or your budget worksheet.
A shortfall is the amount your loan payoff exceeds the net settlement applied to the loan. It can grow if fees, taxes, or excluded items are part of the payoff statement.
Enter the settlement you expect to be paid. If the estimate is gross, leave the net toggle unchecked so the calculator subtracts the deductible once. If you already have a net figure, check the toggle.
Exclusions reduce the eligible shortfall that the coverage is allowed to pay. That means the remaining balance you owe can increase even when the initial payoff gap looks covered.
Percent caps limit coverage to a multiple of vehicle value. A lower value tightens the cap and can reduce payment. If you know the insurer’s valuation, enter it for a more accurate cap.
Reimbursement is modeled as cash back to you. It can reduce your net out-of-pocket estimate, but it may be capped or shared with the main benefit depending on the contract settings you choose.
No. It is an estimate based on your inputs and common cap logic. Actual payments depend on your policy wording, lender payoff rules, documentation, and the final settlement calculation.