Structured Settlement Calculator - Free Settlement Calculator
Free structured settlement calculator for legal settlements. Calculate settlement present value, payments, and analyze structured settlement options. Our calculator uses settlement formulas to determine present value and payment terms for legal settlements.
Last updated: October 19, 2025
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Present Value Analysis
Adjusted Values
$1,000,000
Current value
$1,000,000
Total payments
$950,000
After fees
Excellent Settlement
This structured settlement offers excellent value with high present value and favorable terms.
Payment Schedule (First 12 Payments)
| Payment | Amount | Present Value | Cumulative |
|---|---|---|---|
| 1 | $5,000 | $4,979 | $4,979 |
| 2 | $5,000 | $4,959 | $9,938 |
| 3 | $5,000 | $4,938 | $14,876 |
| 4 | $5,000 | $4,918 | $19,793 |
| 5 | $5,000 | $4,897 | $24,691 |
| 6 | $5,000 | $4,877 | $29,567 |
| 7 | $5,000 | $4,857 | $34,424 |
| 8 | $5,000 | $4,836 | $39,260 |
| 9 | $5,000 | $4,816 | $44,077 |
| 10 | $5,000 | $4,796 | $48,873 |
| 11 | $5,000 | $4,776 | $53,649 |
| 12 | $5,000 | $4,757 | $58,406 |
Detailed Breakdown
| Category | Item | Amount | Description |
|---|---|---|---|
| Settlement Details | Settlement Amount | $1,000,000 | Total settlement amount |
| Settlement Details | Payment Amount | $5,000 | Individual payment amount |
| Settlement Details | Total Payments | 240 | Number of payments |
| Settlement Details | Payment Frequency | 1 | Payment frequency (monthly/annual) |
| Financial Analysis | Present Value | $1,000,000 | Present value of settlement |
| Financial Analysis | Total Payments Value | $1,000,000 | Total value of all payments |
| Financial Analysis | Discount Factor | 100% | Present value as percentage of total payments |
| Financial Analysis | Discount Rate | 5% | Annual discount rate used |
| Adjustments | Inflation Adjusted Value | $1,806,111 | Value adjusted for inflation |
| Adjustments | Tax Adjusted Value | $750,000 | Value after tax considerations |
| Adjustments | Legal Fees | $50,000 | Legal fees and costs |
| Adjustments | Net Settlement Value | $950,000 | Final settlement value after all adjustments |
| Tax Information | Tax Rate | 25% | Effective tax rate |
| Tax Information | Inflation Rate | 3% | Expected inflation rate |
| Settlement Type | Settlement Type | 1 | Lump sum vs structured payments |
Structured Settlement Calculator Types & Features
Settlement analysis
Structured Settlement
Calculate structured settlement present value
Present value analysis
Present Value
Calculate settlement present value
Payment analysis
Payment Calculator
Calculate settlement payments
Comparison analysis
Lump Sum vs Structured
Compare settlement options
Value analysis
Settlement Value
Calculate settlement values
Legal analysis
Legal Settlement
Calculate legal settlements
Quick Example Result
For a $1,000,000 settlement with $5,000 monthly payments for 20 years at 5% discount:
Present Value
$758,000
Total Payments
$1,200,000
How Our Structured Settlement Calculator Works
Our structured settlement calculator calculates present value using standard financial formulas. The calculation applies settlement formulas to determine present value, payment schedules, and settlement options for legal settlements.
Present Value Formula
PV = PMT × [1 - (1 + r)^-n] / rWhere PV = Present Value, PMT = Payment, r = Rate, n = Number of Payments
Shows settlement calculations and present value analysis
Understanding Structured Settlements
Structured settlements provide guaranteed income streams over time, offering financial security and protection from spending the entire settlement at once. They can provide tax advantages and protection from creditors, but may offer less flexibility than lump sum payments.
- Present Value: Current worth of future settlement payments
- Discount Rate: Interest rate used to calculate present value
- Payment Frequency: Monthly, annual, quarterly, or semi-annual
- Inflation Adjustment: Accounts for purchasing power over time
- Tax Considerations: May affect settlement value and payments
- Legal Fees: Costs that reduce net settlement value
Sources & References
- Structured Settlement Protection Act - U.S. Department of JusticeFederal guidelines for structured settlement transfers and sales
- American Bar Association - Settlement GuidelinesProfessional guidelines for structured settlements and legal finance
- IRS Settlement Guidelines - Internal Revenue ServiceTax implications and guidelines for structured settlements
Need help with other legal finance calculations? Check out our lumpsum calculator and investment growth simulator.
Get Custom Calculator for Your PlatformStructured Settlement Calculator Examples
Settlement Parameters:
- Settlement Amount: $1,000,000
- Payment Amount: $5,000
- Payment Frequency: Monthly
- Total Payments: 240 (20 years)
- Discount Rate: 5%
- Legal Fees: $50,000
Calculation Steps:
- Monthly Rate = 5% ÷ 12 = 0.417%
- Present Value = $758,000
- Total Payments = $1,200,000
- Discount Factor = 63.2%
- Net Settlement = $708,000
- Inflation Adjusted = $1,280,000
Result: Present Value = $758,000, Total Payments = $1,200,000, Net Settlement = $708,000
This structured settlement provides guaranteed income with reasonable present value.
High Discount Rate Example
$1,000,000 settlement with 8% discount rate
Present Value: $623,000, Lower Value
Low Discount Rate Example
$1,000,000 settlement with 3% discount rate
Present Value: $896,000, Higher Value
Frequently Asked Questions
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