Discount Rate Calculator

The discount rate is the single most important number in any structured settlement transaction, yet most buyers never disclose it. Instead, they present a lump-sum offer and hope you will accept without questioning the math behind it. This calculator exists to change that.

When a buyer offers you $120,000 for a settlement that will pay $270,000 over 15 years, they are applying a discount rate of approximately 11-12% annually. That rate reflects their cost of borrowing, operational costs, risk premium, and profit margin. The higher the rate, the less you receive.

Industry rates currently range from about 7% (for large, low-risk settlements with MetLife or New York Life as the carrier) to 18%+ (from aggressive buyers with no competition). The national average sits around 11%. For a 15-year monthly settlement of $1,500, the difference between a 9% and 15% rate is roughly $30,000.

The best strategy is simple: get 3-5 quotes, use this calculator to find the rate in each offer, and negotiate with knowledge. Our Buyer Ratings tool ranks 26+ buyers by discount rate, payout speed, and trust score.