Enter Your Settlement Details
Factoring companies typically use 9-15% discount rates
Your Estimated Values
If you keep your settlement
Present value at selected discount rate
45% less than keeping payments
Important: This is an estimate only. Actual offers from structured settlement buyers may vary. Always consult with a licensed professional before selling.
Understanding the Calculator
Time Value of Money
Money today is worth more than the same amount in the future due to its potential earning capacity. This is the foundation of present value calculations.
Discount Rate
The discount rate reflects the buyer's profit margin and risk assessment. Higher rates mean you receive less cash now. Typical rates range from 9% to 15%.
Protect Your Interests
Always get multiple quotes and consult with a structured settlement attorney before selling. State protection acts require court approval for transfers.
How to Calculate Your Structured Settlement Payout
When you sell a structured settlement for a lump sum, the buyer applies a discount rate to calculate what your future payments are worth today. Here's how it works:
Add up your total future payments
Multiply your monthly payment by the number of months remaining. For example, $2,000/month for 15 years = $360,000 total.
Apply the discount rate
The buyer uses a discount rate (typically 9%–15%) to calculate the present value. A higher rate means a lower lump sum offer.
Get your estimated lump sum value
The result is your present value — the approximate cash you'd receive if you sell. Court approval is required in all states.
Structured Settlement Calculator FAQ
How much is my structured settlement worth?
The present value depends on three factors: your monthly payment amount, years remaining, and the discount rate applied. Use the calculator above with your actual numbers to get an estimate. Most sellers receive 50%–70% of total future payments as a lump sum.
What discount rate do structured settlement buyers use?
Most factoring companies apply discount rates between 9% and 15%. Lower rates mean more cash for you. Rates depend on the payment schedule, your state, and the buyer's policies. Always compare quotes from multiple companies.
Can I sell only part of my structured settlement?
Yes. You can sell a portion of your payments (for example, 5 years of a 20-year settlement) while keeping the rest. Partial sales often get better discount rates because they represent lower risk to buyers.
Is a structured settlement lump sum taxable?
In most cases, no. Under IRC Section 104(a)(2), structured settlement payments from personal physical injury cases remain tax-free even after a transfer. However, settlements for non-physical claims may have different tax treatment. See our regulations guide for details.
How long does it take to sell a structured settlement?
The process typically takes 45–90 days from accepting an offer to receiving funds. Court approval is required under your state's Structured Settlement Protection Act. Learn about the full selling process.
Structured settlement vs lump sum — which is better?
It depends on your financial needs. Keeping payments provides guaranteed long-term income and tax benefits. A lump sum buyout gives immediate cash but at a discount. Consider your debts, investments, and financial goals before deciding.
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