Jon Lynch Financial

Annuity Buyout Calculator

Estimate the lump-sum value of your structured annuity or settlement payments. See gross present value, a typical buyer offer, and net cash at closing after fees — before you sign anything.

Your payments

What you could net

Gross present value
at chosen discount rate
Typical buyer offer
60–80% of gross PV is normal
Closing costs
legal, court, processing
Cash at closing
net to you
Total future payments
undiscounted
Effective haircut
cash ÷ future payments

Estimate only. Real offers depend on issuer rating, payment-stream type (life-contingent vs. period-certain), state law, and whether the transfer requires court approval. Structured-settlement transfers under the federal Structured Settlement Protection Act (SSPA) require a judge's sign-off in nearly every state — that process takes 60–90 days and adds legal fees. Pure commercial annuities don't.

When this makes sense — and when it doesn't

When it makes sense

  • You have an urgent, large cash need — medical, housing, business — that the trickle of monthly payments can't cover.
  • You can redeploy the lump sum into a higher-return use (paying off high-interest debt, investing in your business, buying real estate).
  • Your payment stream is from a strong issuer with a high credit rating (better issuers attract better offers).
  • You understand you're giving up roughly 20–40% of the gross PV for liquidity and speed.

When it doesn't

  • The payments are your primary income and you don't have another reliable income source.
  • You'd spend the lump sum on consumables that won't compound (vacations, depreciating assets).
  • The discount rate the buyer wants is north of 15% — that's a steep price for liquidity; shop it.
  • You're being rushed. SSPA transfers exist for your protection; never sign with a buyer trying to skip the court step.

How buyers actually price. A factoring company discounts your future payments at a rate they'd need to earn — typically 9–14% — then applies an additional margin to cover risk, legal, and acquisition cost. That's why the "offer" is usually 60–80% of the gross PV you'd compute at, say, 6%.

Which path fits you?

This tool helps three audiences. Pick the one that's you.

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