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Calculator · Loans & Credit

Structured Settlement Buyout Calculator

What a lump-sum offer for your future payments is really worth in present-value terms.

Read the how-to
The formula

How this number is built

present value = Σ payment ÷ (1 + r)ⁿ · implied rate solves PV = net lump sum
Step by step

Doing it by hand

Step 1

List every remaining payment with its exact date and amount from the annuity contract.

Step 2

Choose a discount rate reflecting what you could genuinely earn on the lump sum.

Step 3

Compare the offer to that present value, not to the nominal total.

Step 4

Get at least three competing quotes; these are negotiated, not fixed-price transactions.

Step 5

Expect a court hearing — transfers require judicial approval in most states.

Questions

What people ask next

Do I have to sell all my payments?

No. Partial sales are common and usually preferable, since they raise cash while preserving future income.

Why does a court have to approve it?

State structured settlement protection acts require a judge to find the transfer is in your best interest, specifically to guard against underpriced deals.

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Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.