Financial Aid Gap Calculator Formula
Understand the math behind the financial aid gap calculator. Each variable explained with a worked example.
Formulas Used
Financial Aid Gap
aid_gap = max(total_cost - total_aid, 0)Total Cost of Attendance
total_coa = total_costTotal Aid Package
total_aid_out = total_aidNet Price (after free money)
net_price = total_cost - free_moneyAid Coverage
aid_coverage_pct = min(total_aid / total_cost * 100, 100)Variables
| Variable | Description | Default |
|---|---|---|
tuition_fees | Tuition and Fees($) | 30000 |
room_board | Room and Board($) | 12000 |
books_supplies | Books and Supplies($) | 1200 |
grants_scholarships | Grants and Scholarships($) | 18000 |
federal_loans | Federal Loans Offered($) | 5500 |
work_study | Work-Study($) | 2500 |
total_cost | Derived value= tuition_fees + room_board + books_supplies | calculated |
total_aid | Derived value= grants_scholarships + federal_loans + work_study | calculated |
free_money | Derived value= grants_scholarships | calculated |
How It Works
How to Calculate the Financial Aid Gap
The aid gap is the difference between what college costs and what your financial aid covers. This is the amount you must pay from savings, income, or additional loans.
Formula
Total Cost = Tuition + Room & Board + Books
Aid Gap = Total Cost - (Grants + Loans + Work-Study)
Net Price = Total Cost - Grants/Scholarships (free money only)
The net price is a better measure of true cost since loans and work-study must be repaid or earned.
Worked Example
COA: $43,200 ($30K tuition, $12K room/board, $1.2K books). Aid: $18K grants, $5.5K loans, $2.5K work-study.
- 01Total cost: $30,000 + $12,000 + $1,200 = $43,200
- 02Total aid: $18,000 + $5,500 + $2,500 = $26,000
- 03Aid gap: $43,200 - $26,000 = $17,200
- 04Net price (free money only): $43,200 - $18,000 = $25,200
- 05Aid coverage: $26,000 / $43,200 = 60.2%
Ready to run the numbers?
Open Financial Aid Gap Calculator