Structured Settlement Value Calculator
Every offer to buy your structured settlement payments is just present-value math at a discount rate the buyer chooses. This calculator shows that math openly, so you can see what your payments are worth at any rate before you ever talk to a factoring company.
Sensitivity to the discount rate:
This is the math, not an offer. Any sale requires court approval under your state's Structured Settlement Protection Act, and quotes vary widely between buyers — always compare several.
Illustrative only, based on the assumptions you enter — not a quote, an offer, or financial advice. Rates and rules change; verify current figures with a licensed professional before acting.
How this calculator works
The calculator discounts your remaining monthly payments to a single value today. The sensitivity table is the important part: the same payments can be "worth" very different amounts depending on the discount rate, which is why offers vary so widely between buyers.
State Structured Settlement Protection Acts require disclosure of the discounted present value and the effective rate in any sale, and every sale needs court approval under a best-interest standard. Federal law (IRC §5891) imposes a 40% excise tax on buyers who skip the court order — so a legitimate sale always goes through a judge.
Remember that selling usually swaps tax-free future payments (for physical-injury settlements under IRC §104(a)(2)) for a smaller lump sum today. Compare several quotes, and consider selling only a portion of your payments if you need less cash.
Frequently asked questions
What discount rate do buyers actually use?
It varies by company and deal, and is typically well above bond yields — that spread is the buyer’s margin. The exact rate must be disclosed in your state-mandated paperwork; use it here to check the offer.
Why is the offer so much less than my payment total?
Two reasons: time value of money (far-off payments are worth less today at any rate) and the buyer’s discount rate, which marks them down further than a bond investor would.
Do I have to sell all my payments?
No. Partial sales — a block of payments, a future lump sum, or a slice of each check — are common and often easier for a court to approve, since you keep ongoing income.
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This tool is for general education only and is not financial, tax, or legal advice. Results are illustrations based on your inputs — not quotes or guarantees. Consult a licensed professional before making decisions about annuities, settlements, or retirement accounts.