How Much Is Your Annuity Really Worth?
Enter your payment details. Our AI analyzes your annuity against live 2026 market data from 26+ licensed buyers and calculates your exact value at every discount rate.
$1,500
12 years
Total Face Value
$216,000
144 payments
Best Case (9%)
$131,807
61% of face
Average (12%)
$114,206
53% of face
Low Ball (18%)
$88,281
41% of face
Full Payout Table: Your Settlement at Every Rate
7%
$145,860
9%
$131,807
10.5%
$122,535
12%
$114,206
14%
$104,375
15%
$99,942
16%
$95,796
18%
$88,281
20%
$81,672
22%
$75,838
How Much Is a Structured Settlement Annuity Worth in 2026?
The value of a structured settlement annuity depends on your monthly payment amount, years remaining, the payment frequency, and the discount rate a buyer applies. In 2026, internal rates of return on structured settlement annuities range from 4.5% to 5.5%, which translates to a tax-free equivalent of over 7% compared to taxable investments. When you sell your structured settlement, buyers typically apply discount rates between 9% and 18% — the lower the rate, the more cash you receive.
What Discount Rate Should I Expect?
Competitive 2026 rates range from 7% to 14% for guaranteed (period-certain) payments from A-rated insurance carriers. The seven factors that determine your specific rate are: payment type (guaranteed vs. life contingent), total amount (larger gets lower rates), timeline (shorter is better), frequency, insurance company rating, state laws, and how many competing quotes you have. The single most powerful factor is competition — sellers who get 3-5 quotes receive 8-15% more cash than those who accept a single offer.
Should You Sell Your Annuity or Keep It?
Structured settlement annuities provide guaranteed, tax-free income — something no other financial product can match. Research shows that over 90% of people who take lump-sum payments spend all the money within five years. However, there are legitimate reasons to sell: paying off high-interest debt (saving more in interest than the discount costs), covering medical emergencies, buying a home (building equity vs. renting), or funding education. A partial sale — selling only what you need — is almost always the smarter approach.
The Present Value Formula Behind This Calculator
Every annuity value calculation uses the Present Value of an Ordinary Annuity formula: PV = PMT × [(1 - (1 + r)^-n) / r]. Where PV is your lump sum value, PMT is your periodic payment amount, r is the periodic discount rate (annual rate divided by payments per year), and n is your total remaining payments. This is the same formula Wall Street uses to price bonds. The calculator above runs this formula instantly at every rate from 7% to 22% so you see the full spectrum of what your annuity is worth.
Tax Treatment of Annuity Sales
Lump sums received from selling structured settlement annuities arising from personal physical injury or sickness remain tax-free under IRC Sections 104(a)(2) and 5891. The proceeds maintain their tax-exempt status even after transfer. Settlements from non-physical claims (employment disputes, punitive damages) may be taxable — consult a tax professional for your specific situation. IRC Section 5891 imposes a 40% excise tax on buyers who purchase settlements without court approval, which is why all legitimate transactions require a judge's sign-off.