Structured settlement payout calculator
Estimate the lump-sum present value of your future settlement or annuity payments before you sell, and see how much you would lose to discounting. Free, private, and calculated right in your browser.
Last updated: 18 June 2026
⚑ An estimate only — not advice
This tool provides estimates for educational purposes only and is not financial, tax or legal advice. Results vary enormously by case, state and company — real factoring offers are almost always LOWER than this present-value estimate, and a judge must approve any sale. Consult a licensed attorney or financial professional before making any decision.
$
12% — typical factoring rates run 9%–18%+
Estimated lump-sum present value
$0
$0Total of future payments
$0Lump-sum estimate
$0Lost to discounting
0%Discount rate
Educational note
Before you sell — get a second opinion
Cashing out a structured settlement is rarely reversible and often costly. Compare written quotes from several licensed factoring companies, and run the numbers against simply leaving the money invested. Our compound-interest tool shows what those future payments could grow to if you keep them.
Compound interest calculator →How the structured settlement calculator works
A structured settlement pays you a stream of fixed payments over time. Factoring companies offer you a single lump sum today in exchange for some or all of those future payments — but a dollar paid years from now is worth less than a dollar today. To compare them fairly, every future payment is "discounted" back to its present value using this formula:
PV = pmt · [ 1 − (1+r)−n ] / r
Here pmt is each payment, r is the periodic discount rate, and n is the number of remaining payments. For monthly payments we use r = annual rate ÷ 12 and n = years × 12; for annual payments r = annual rate and n = years. The total of future payments is simply pmt × n, and the amount lost to discounting is that total minus the present value.
The single biggest lever is the discount rate. The higher it is, the smaller your lump sum — and factoring companies set their own rates, frequently 9% to 18% or more once fees are included. That is why a real cash offer is almost always lower than the figure this tool shows, and why a judge must review and approve the sale to confirm it is in your best interest before any money changes hands.
Frequently asked questions
How is the present value of a structured settlement calculated?
Each future payment is discounted back to today using PV = pmt·[1−(1+r)⁻ⁿ]/r, where pmt is the payment, r the periodic discount rate (annual ÷ 12 for monthly) and n the number of remaining payments. A higher discount rate means a smaller lump sum today.
Will a factoring company really pay me this lump sum?
Usually no. This is a present-value estimate. Real offers are almost always lower because companies add profit, fees and risk margins, so the cash you actually receive can be far below the total of your future payments.
Do I need court approval to sell my structured settlement?
Yes. In the US almost every sale of payment rights must be approved by a judge under state Structured Settlement Protection Acts. The court checks the sale is in your best interest, so you cannot simply cash out on your own.
Is selling my structured settlement a good idea?
It depends on your situation and is often expensive — you give up a large share of future money for cash now. Compare multiple written offers and consult an independent adviser or attorney first. This calculator is educational only.
Related tools
Sources & further reading
Standard present-value-of-an-annuity formula. U.S. Consumer Financial Protection Bureau (consumerfinance.gov) and the Federal Trade Commission (consumer.ftc.gov) on selling structured settlements and payment rights; state Structured Settlement Protection Acts. Read our full disclaimer →