Structured Settlement Present Value Calculator
Calculate the present value of your structured settlement payments, and see the effective discount rate implied by a factoring company's lump-sum buyout offer.
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Present Value of Remaining Payments
$123,632.00
Estimated • Based on your inputs
Total of All Remaining Payments (Undiscounted)
$180,000.00
Discount Rate Implied by the Buyout Offer
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Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
Uses the standard present-value-of-an-annuity formula -- the same time-value-of-money math behind the site's Annuity Payout Calculator, applied in the opposite direction: instead of converting a lump sum into a payout stream, this discounts a known stream of future fixed payments back to what they're worth today, PV = PMT × [1 - (1+r)^-n] / r, where PMT is the per-payment amount, r is the periodic discount rate, and n is the number of remaining payments. If you enter an actual cash buyout offer from a factoring company, the calculator solves (via numerical bisection) for the periodic discount rate that would make the present-value formula equal that exact offer, then annualizes it -- showing you the effective rate the company is using to discount your future payments, which every state's Structured Settlement Protection Act requires a court to find "fair and reasonable" before approving the sale.
Key State Information
Every state has a Structured Settlement Protection Act requiring court approval before you can sell structured settlement payment rights, generally on a finding that the sale is in your best interest and the discount rate/price is fair and reasonable -- specific procedures and disclosure requirements vary by state.
How to Use This Legal Settlements Calculator
- 1
Enter your information
Input the required values. The calculator is pre-filled with your state's data where applicable — adjust to match your specific situation for accurate results.
- 2
Review default values
Check that the pre-filled state-specific data (tax rates, median values, etc.) matches your local situation. You can override any value to customize the calculation.
- 3
Analyze your results
Review the calculated outputs. Use the breakdown table to understand exactly how each factor contributes to the final result.
- 4
Compare across states
Use the related state calculators linked below to compare results across different states — useful for relocation planning and financial comparison.
Example Calculation
Here's a practical example using this state's data.
The calculator uses state-specific public data and documented estimates where available — including tax rates, median values, and cost benchmarks — to produce a personalized estimate for the inputs you provide.
Result: Results will vary based on your individual inputs. Use this calculator as a starting point, then adjust the values to test different scenarios. The methodology section below explains exactly how each result is calculated.
What Affects Your Results
State-Specific Inputs
Each state has unique rates, fee schedules, and regulatory requirements that can affect results. This page's methodology and source card identify which inputs are sourced, modeled, or user-adjustable.
Income Level
Many calculations are income-dependent due to progressive tax brackets, phase-outs, or income-based eligibility thresholds. Higher income doesn't always mean proportionally higher costs.
Local Variations
State averages may not reflect your specific city or county. Local taxes, fees, and market conditions can vary ±20% from state averages.
Annual Changes
Tax rates, fee schedules, and regulations change. Check the recorded source-review date and verify critical numbers with the relevant agency.
Tips & Best Practices
- Always verify pre-filled values against your actual data. State averages are a good starting point but your situation may differ significantly.
- Run multiple scenarios by adjusting key inputs to see how changes affect your results. This helps with planning and decision-making.
- Compare your results across states using the related calculators linked below — especially valuable if you're considering relocating or doing business in another state.
- Bookmark this page to recalculate periodically as rates change. Check the page source card and review date before relying on a pre-filled value.
- Consult a qualified professional for major financial decisions. These calculators provide estimates based on standard formulas — a CPA or financial advisor can factor in your complete financial picture.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
How is the present value of a structured settlement calculated?
Future payments are discounted back to today's dollars using a chosen discount rate and the number of payments remaining, with the standard present-value-of-an-annuity formula: PV = PMT × [1 - (1+r)^-n] / r. A higher discount rate or more remaining payments both increase the difference between the present value and the simple (undiscounted) total of all payments.
What discount rate do structured settlement factoring companies use?
It varies by company and is not standardized, but factoring companies buying structured settlement payment rights commonly apply discount rates well into the double digits -- often much higher than typical market interest rates -- which is why lump-sum buyout offers are usually far below the simple total of the payments being sold. Enter an actual offer above to see the effective rate it implies.
Is it a good idea to sell my structured settlement?
This calculator only shows you the math -- the implied discount rate and how the offer compares to present value -- it does not give financial advice. Every state requires a judge to approve the sale, generally finding it's in your best interest, and getting quotes from multiple companies is standard advice given by consumer-protection resources before accepting any offer.
Are structured settlement payments taxable?
If the structured settlement resolves a physical injury or physical sickness claim, the periodic payments are generally non-taxable, same as a lump-sum settlement for that type of claim would be (see the Legal Settlement Tax Calculator). If you later sell your payment rights for a lump sum, that transaction itself does not create new taxable income beyond what the original settlement type already determined.
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