{
  "slug": "structured-settlement-payout-calculator",
  "title": "Structured Settlement Payout Calculator",
  "heading": "Structured Settlement Cash-Out Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/structured-settlement-payout-calculator",
  "summary": "What a buyer pays today for your future settlement payments.",
  "description": "Companies that buy structured settlements quote a lump sum today in exchange for your future scheduled payments. That lump sum is a present-value calculation with a discount rate attached, and the discount rate is where nearly all of the buyer's profit lives — quotes commonly land between 8% and 18%, and a few percentage points move the offer by tens of thousands of dollars. This calculator prices your payment stream at whatever discount rate you enter, shows the total nominal value you are giving up, and reports the effective haircut as a percentage. Use it to compare competing offers on equal footing: convert each offer back into its implied discount rate by adjusting the input until the present value matches the quote. Court approval is required for these transfers in every US state under structured settlement protection acts, and judges do consider whether the discount is unconscionable, so an offer far below the numbers here is worth challenging.",
  "formula": "Present Value = Σ Payment ÷ (1 + r/12)^t over the remaining months, less buyer fees.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=structured-settlement-payout-calculator",
  "inputs": [
    {
      "id": "payment",
      "label": "Payment amount",
      "kind": "number",
      "hint": null,
      "default": 1000,
      "unit": "$",
      "min": 10,
      "max": 100000
    },
    {
      "id": "frequency",
      "label": "Payment frequency",
      "kind": "select",
      "hint": null,
      "default": "12",
      "options": [
        {
          "value": "12",
          "label": "Monthly"
        },
        {
          "value": "4",
          "label": "Quarterly"
        },
        {
          "value": "1",
          "label": "Annually"
        }
      ]
    },
    {
      "id": "years",
      "label": "Years of payments remaining",
      "kind": "number",
      "hint": null,
      "default": 15,
      "unit": "years",
      "min": 1,
      "max": 40
    },
    {
      "id": "discountRate",
      "label": "Buyer's discount rate",
      "kind": "number",
      "hint": null,
      "default": 12,
      "unit": "%",
      "min": 1,
      "max": 25
    },
    {
      "id": "fees",
      "label": "Transfer / legal fees",
      "kind": "number",
      "hint": null,
      "default": 2000,
      "unit": "$",
      "min": 0,
      "max": 25000
    }
  ],
  "outputs": [
    {
      "id": "netCash",
      "label": "Estimated cash in hand",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "pv",
      "label": "Present value before fees",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "nominal",
      "label": "Total future payments given up",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "haircut",
      "label": "Effective discount",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "n",
      "label": "Payments sold",
      "format": "number",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Payment amount: 1000 $",
      "Payment frequency: Monthly",
      "Years of payments remaining: 15 years",
      "Buyer's discount rate: 12 %",
      "Transfer / legal fees: 2000 $"
    ],
    "outputs": [
      "Estimated cash in hand: $81,322",
      "Present value before fees: $83,322",
      "Total future payments given up: $180,000",
      "Effective discount: 54.8%",
      "Payments sold: 180"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter payment amount ($).",
      "Enter payment frequency.",
      "Enter years of payments remaining (years).",
      "Enter buyer's discount rate (%).",
      "Enter transfer / legal fees ($).",
      "Read your estimated cash in hand on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "payment": 600,
        "frequency": "12",
        "years": 9,
        "discountRate": 7.199999999999999,
        "fees": 1250
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "payment": 1000,
        "frequency": "12",
        "years": 15,
        "discountRate": 12,
        "fees": 2000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "payment": 1600,
        "frequency": "12",
        "years": 24,
        "discountRate": 19.200000000000003,
        "fees": 3250
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What discount rate is fair?",
      "a": "Competitive offers in recent years cluster around 8-14%. Anything above roughly 18% is generally considered aggressive and courts have rejected transfers on that basis. Shop at least three buyers."
    },
    {
      "q": "Can I sell only part of my payments?",
      "a": "Yes. Partial sales — a fixed number of upcoming payments, or a slice of each — are common and preserve long-term income. Model that by lowering the payment amount or the number of years."
    },
    {
      "q": "Do I owe tax on the lump sum?",
      "a": "Payments from a personal physical injury settlement are generally tax-free, and a qualified transfer usually keeps that treatment. Lottery and non-injury structures are different. Confirm with a tax professional."
    },
    {
      "q": "Why does court approval matter?",
      "a": "State protection acts require a judge to find the transfer in your best interest. Bring competing quotes; a judge comparing your offer to market rates is your strongest leverage."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/personal-injury-settlement-estimator"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Structured Settlement Payout Calculator (https://www.revenuelab.fyi/toolbox/structured-settlement-payout-calculator)"
}