Structured Settlement Calculator: Monthly Payout From a Settlement
Work out the monthly payout from a structured settlement — the steady, scheduled income paid out instead of a single lump sum.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly income | Total drawn | Growth while drawing |
|---|---|---|---|
| $400k · 3% · 15yr | $2,762.33 | $497,218.78 | $97,218.78 |
| $150k · 2.5% · 10yr | $1,414.05 | $169,685.82 | $19,685.82 |
| $1M · 4% · 25yr | $5,278.37 | $1,583,510.52 | $583,510.52 |
| $250k · 3.5% · 20yr | $1,449.90 | $347,975.83 | $97,975.83 |
How This Calculator Works
Enter the settlement amount, the rate the funding earns, and the payout term. The calculator finds the fixed monthly payout that pays the settlement out evenly across the term while the balance earns the rate.
The Formula
Fixed-Period Drawdown
PV = savings pot, r = monthly rate (annual ÷ 12), n = number of monthly payments
Worked Example
A $400,000 structured settlement earning 3% over a 15-year term pays about $2,762 a month. The payouts total roughly $497,200, since the balance keeps earning while it is paid down.
Key Insight
A structured settlement spreads a legal award into steady income, which protects against spending it all at once. Selling future payments for a lump sum almost always means accepting far less than their scheduled total.
Frequently Asked Questions
What is a structured settlement?
It is a legal settlement paid as a stream of scheduled payments over time, rather than a single lump sum, often funded through an annuity.
Why are settlements structured?
Scheduled payments provide stable long-term income and guard against spending a large award too quickly. They can also carry tax advantages depending on the case.
Can I sell my structured settlement?
Often yes, to a buyer for a lump sum, usually with court approval. The lump sum offered is well below the total of the future payments being given up.
Are structured settlement payments taxed?
Payments from a personal physical-injury settlement are often tax-free, but rules vary by case type. Confirm the tax treatment for your specific settlement.
Does this model custom schedules?
No. Real settlements can include lump sums and step-ups. This calculator models a level monthly payout across the term as an estimate.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources. The starting values for annual rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
The monthly payout is the fixed amount that pays the settlement out over the term, with the balance earning a steady rate. Real settlements may use custom schedules and lump sums this model does not capture.
Written by Ugo Candido · Last updated May 17, 2026.