Structured Settlement Present Value Calculator

Calculate the fair market present value and lump sum buyout cash for future structured settlement annuity payments.

Structured Settlement Present Value & Lump Sum Calculator

Calculate the true net present value (NPV) of future annuity payments, evaluate factoring company buyout offers, and see total dollars lost to discount rates.

Monthly Payment ($)

Years Remaining

Future Balloon Payment ($)

Lump sum guaranteed at end of term (if any).

Discount Rate (9%)

Factoring companies typically charge 8% to 15%.

Estimated Lump Sum Buyout Cash

$218,475

Immediate cash in exchange for surrendering 10 years of payments.

Total Nominal Payouts

$350,000

Fair Present Value (4.5%)

$273,420

Factoring Company Haircut: You surrender $131,525 (37.6% of your total settlement) in exchange for cash today.

How Structured Settlement Buyouts Work

When you receive a structured settlement from a personal injury claim, medical malpractice lawsuit, or wrongful death case, payments are guaranteed over many years. Factoring companies offer upfront lump sums, but apply hefty discount rates (often 8% to 15%+) that substantially reduce the money you receive.

Key Features

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Discount Rate Sensitivity Modeling

Test discount rates from 4% to 18% to see how factoring company fees erode your lifetime cash.

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Balloon & Lump Sum Integration

Accurately discounts periodic monthly payments along with future one-off lump sums.

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Fair Present Value Benchmark

Compares factoring offers against a safe risk-free Treasury benchmark (4.5%).

Common Use Cases

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Settlement Recipients Considering Buyouts
Assess whether taking a lump sum to buy a home or pay off debt justifies losing future guaranteed cash.
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Attorneys & Financial Guardians
Evaluate factoring settlement proposals during mandatory judicial court approval hearings.

Frequently Asked Questions

What is a structured settlement discount rate?

The discount rate is the annual percentage rate a factoring company uses to discount your future guaranteed settlement payments back to present day value. Higher discount rates mean significantly less cash in your pocket today.

Do I need court approval to sell a structured settlement?

Yes. Under the Structured Settlement Protection Act in all 50 US states, a state court judge must review and approve any transaction to ensure it is in your best financial interest.