Structured Settlement Calculator free online

Structured Settlement Calculator provides a fast and reliable way to determine the current value of your future structured settlement payments. Whether you are considering selling your settlement for a lump sum or simply want to understand its worth, our tool helps you make informed financial decisions.

What Is a Structured Settlement?
A structured settlement is a financial agreement that provides a series of periodic payments over time, often resulting from a personal injury lawsuit, workers’ compensation claim, or another legal settlement. The idea is that instead of receiving a lump sum, the injured party or claimant gets a guaranteed income stream over a specified period. These payments are usually tax-free and can vary depending on the terms of the settlement.
While structured settlements offer long-term security, there are times when individuals need access to the full value of their settlement upfront. Whether you want to sell a portion of your payments or convert your entire structured settlement into a lump sum, understanding how much you can get for it is crucial.
That’s where our Structured Settlement Calculator comes into play.

How the Structured Settlement Calculator Works

1. Total Settlement Value
The total value of your settlement is the amount you are set to receive over the course of your agreement. This is the starting point for any calculations. For example, if you are to receive monthly payments of $1,000 for 20 years, the total settlement value will be $240,000.
2. Remaining Payments (Months)
Next, you need to input how many months of payments are left on your structured settlement. This figure will help determine the remaining value of your structured settlement based on the total remaining payments.
3. Payment Frequency
Payments can be structured monthly, quarterly, or yearly, depending on the settlement agreement. By selecting the frequency, the calculator adjusts the formula accordingly to provide the most accurate results for your situation.
4. Discount Rate
The discount rate is a percentage applied to the remaining payments to calculate the present value of your settlement. This rate reflects the time value of money and helps determine how much your future payments are worth today. A higher discount rate means you’ll receive a smaller lump sum.
5. Portion of Settlement to Sell
Sometimes, you may not want to sell the entire settlement. Instead, you might choose to sell only a portion of it, such as a specific number of payments. This option helps tailor the calculation based on how much of the settlement you wish to liquidate.
6. Annuity Options
For some, their structured settlement may involve an annuity, where the payments are guaranteed for a specific period. You can select between Fixed Annuity and Variable Annuity, depending on the terms of your settlement.
7. Annuity Duration & Interest Rate
For those selecting an annuity, you’ll need to provide the duration of the annuity (in years) and, in the case of a variable annuity, the interest rate. These two values will influence how much the annuity will be worth over time.
The Importance of Structured Settlement Calculations

Calculating your settlement’s present value is vital if you’re considering selling your payments. It allows you to evaluate the financial implications of selling your structured settlement. In many cases, sellers will receive less than the total value of their settlement due to the present value being discounted by the buyer (who may also factor in the risk of future payments not being made).
However, the Structured Settlement Calculator empowers you to make more informed decisions by showing you exactly how much your settlement is worth today, considering the discount rate and other factors.
How Does the Calculator Help with Selling Structured Settlements?
Selling a structured settlement is a big financial decision. Whether you need cash now for medical bills, to pay off debts, or for any other personal reason, it’s important to understand the amount you’ll receive after selling your payments. The calculator gives you an estimate of what you can expect.

For example, let’s say you have a $500,000 structured settlement with 10 years left. After entering the required data into the calculator, including a discount rate of 8% and a monthly payment frequency, the tool will provide an estimate of the lump sum amount you could receive if you sold your settlement.

What Factors Affect the Sale Price of a Structured Settlement?

Discount Rate: The higher the discount rate, the less money you will receive for your structured settlement. This is because the future payments are considered less valuable today due to the time value of money.
Length of Remaining Payments: The longer the duration of your payments, the more likely the buyer is to offer you a smaller lump sum. Shorter periods may result in higher offers.
Payment Frequency: If your payments are spread out annually or quarterly, it may lower the lump sum value compared to monthly payments, which provide a quicker return for the buyer.
Annuity Terms: If your structured settlement involves an annuity with guaranteed periodic payments, your ability to sell it will depend on the type and terms of the annuity.
Market Conditions: Just like any investment, the financial market can also influence how much you can get when selling your settlement. An unstable economy can lead to higher discount rates.

Why Use the Structured Settlement Calculator?

1. Informed Decisions
The most crucial reason to use the Structured Settlement Calculator is to make an informed decision about selling or keeping your settlement. Whether you’re selling a portion or the entirety of your future payments, having an estimate of the lump sum you’ll receive ensures that you are not making a hasty decision without understanding the financial consequences.
2. Understanding Your Options
There are many reasons why people choose to sell their structured settlements, from paying for healthcare to making large purchases. By using the calculator, you gain a clear picture of what selling your settlement will do to your finances.
3. Real-Time Results
The calculator gives real-time results based on the inputs you provide. It’s easy to see how adjustments to factors like the discount rate, payment frequency, or the portion of the settlement you wish to sell affect the lump sum offer.
4. Annuity Specific Calculations
If your structured settlement involves an annuity, the calculator can account for both fixed and variable annuity options, adjusting the final lump sum accordingly.

Frequently Asked Questions (FAQ)
Q1: What is a structured settlement, and why would I need to sell it?
A structured settlement is an agreement where you receive periodic payments over time, often after a lawsuit or legal settlement. If you need cash immediately for expenses like medical bills, buying a house, or paying off debt, selling a portion or all of your settlement can provide the money you need.

Q2: How does the discount rate affect my settlement payout?
The discount rate is used to determine the present value of future payments. A higher discount rate results in a smaller lump sum payout, as future payments are considered less valuable. Conversely, a lower discount rate gives you a higher lump sum value.

Q3: Can I sell only part of my structured settlement?
Yes, you can sell a portion of your structured settlement. The calculator allows you to input the percentage of your settlement that you wish to sell, helping you get an estimate of the payout for that portion.

Q4: What’s the difference between a fixed and a variable annuity?
A fixed annuity provides guaranteed payments over a specific period, while a variable annuity is tied to market performance and may fluctuate based on interest rates or investment returns.

Q5: How do I know if selling my structured settlement is the right choice?
It depends on your financial needs. If you need immediate cash and are willing to accept a reduced lump sum, selling may be a good option. However, if long-term security is your priority, keeping the payments might be a better choice.

Q6: Can I sell a structured settlement to anyone?
No, structured settlements must be sold to buyers who are certified and licensed. It’s important to work with reputable companies that offer fair rates and have a proven track record.

Conclusion
Using a Structured Settlement Calculator can be one of the best decisions you make when deciding whether to sell your settlement. This tool allows you to see the financial impact of selling your future payments and helps you make informed decisions based on your personal situation. Whether you need cash now for medical bills, to pay off debt, or for a major life event, knowing how much you can expect to receive in a lump sum will give you a clearer perspective on your options.
By understanding the impact of variables like discount rates, payment frequency, and annuity terms, you can make a decision that benefits your long-term financial health. Don’t leave your financial future up to chance—use the Structured Settlement Calculator today and start planning your next move.