Structured Settlement Calculator
Your Way
At My Settlement, we understand that rigid payment plans can make it hard to accomplish goals, pay off debts, and invest in you and your family’s future.
Our experienced professionals work with you, one-on-one, to sell your future payments so that you can get the cash you need fast. We also provide more information about structured settlement early withdrawals.
Use our structured settlement calculator to get an assessment and quick hassle-free estimate for a lump sum payment.
Structured Settlement Calculator
Step 1 - Payment Info
Why Use Our Structured Settlement Calculator?
Our structured settlement calculator provides a fast, reliable way to estimate the present value of your structured settlement, annuity, or lottery payments. It gives you a better understanding of what your future payments may be worth today. If you are considering selling your strucutred settlement payments for a lump sum of cash, My Settlement is here to help you make informed decisions about the process. Keep reading to learn more!
Understanding the Value of Your Structured Settlement
When evaluating a structured settlement or considering selling future payments, it’s essential to understand the concept of present value. This concept comes from the time value of money — the principle that a dollar today is worth more than a dollar received years from now.
Accordingly, annuity valuation involves calculating the present value of a stream of future payments. For example, state law defines the “discounted present value” of a structured settlement as the current value of all future payments discounted to today’s dollars using an appropriate interest rate. This concept ensures that a fair comparison can be made between receiving smaller payments over time versus a larger lump sum upfront. In practice, companies that purchase structured settlement payments apply a discount rate to the remaining payments – reflecting interest rates, inflation, and risk – to determine the lump sum’s present worth. Settlement buyers use this logic to calculate the current value of your future payouts.
The industry-standard formula we use for our structured settlement calculator looks like this:
- PV = Present Value of Annuity
- P = Value of each payment
- r = Interest rate per period
- n = Number of payments
If you're receiving $1,000 monthly for the next 60 months and we use a discount rate of 8% annually (approximately 0.667% monthly), your estimated present value would be around $47,500 — not the full $60,000. This discount accounts for inflation, risk, and the opportunity cost of receiving money over time.
Another important factor is the type of payout you're receiving. Are these annuity payments? A structured settlement? Or maybe lottery winnings? Each has different rules, payout expectations, and discounting assumptions.
Lastly, your buyer makes a difference. Buyers charge a discount rate — a certain percentage of your overall settlement value deducted from your final offer. These rates vary depending on their operating costs, risk assumptions, and desired profit margin.
What is the Process for Selling My Structured Settlement?
-
1. Know What You're Owed
Use our structured settlement calculator to estimate how much your structured settlement or annuity payments are worth today. Knowing your future payment value helps you understand the potential lump sum amount a buyer may offer.
-
2. Find a Suitable Purchasing Company
Compare top companies that buy structured settlements. Look for firms offering competitive quotes, fast approval times, and transparency throughout the process. At My Settlement we keep a list of Best Structured Settlement Purchasing Companies.
-
3. Complete the Paperwork
Structured settlement transfers require standardized documents to verify your agreement. You’ll submit identification, payment schedule details, and sign a purchase agreement. Once you've completed the necessary documents, many companies offer signing bonuses and other incentives to assist you before your transaction is finalized. At My Settlement we keep an up-to-date list of Top Structured Settlement Companies That Offer Bonuses.
-
4. Gain Approval From a Judge
Most states require a judge to approve the sale of a structured settlement or annuity. This protects your best interests and confirms you're making a financially informed decision. If you have questions about this process you should check out our article on Why Do I Need Court Approval to Sell My Settlement?
-
5. Receive Your Money!
Once approved, the transfer is finalized and your lump sum payment is released. It’s that simple — you’ve now turned future payments into cash. Congratulations!
Structured Settlement Calculator FAQs
Does the Structured Settlement Calculator work for Annuities or Lottery Payments?
▼How does the Structured Settlement Calculator determine the value of my future payments?
▼Is there a way to get an advance or loan on the value of my structured settlement?
▼What factors influence the estimate given by the Structured Settlement Calculator?
▼Do I need court approval to sell my structured settlement?
▼
Sources & References
The team at My Settlement is committed to providing you with the most accurate and up-to-date information on all the financial implications of your settlement.
- California State Board of Equalization. (2025). Time Value of Money. Retrieved from boe.ca.gov
- Congressional Research Service. (2023). Structured Settlements: Legal Overview. Retrieved from crsreports.congress.gov