Settlement planning
Lump Sum Vs Installment Settlement Comparison
Compare the upfront funding and present cost of a lump sum offer with an installment offer.
How to use this calculator
- Gather written offer amounts; dates; installments; fees; discount rate. Use documents covering the same date or period.
- Replace the example values with your own figures. Change one assumption at a time to compare scenarios.
- Review nominal cost; present value; cash required; calendar. Open the breakdown and export a copy for discussion.
How the calculation works
Lump cost includes its fee. Installment nominal cost includes deposit, fees and every payment. Present value discounts end-of-month installments at the entered annual rate divided by 12. Deposits and fees occur now.
Worked example
These results use the editable example values shown in the calculator. They illustrate the method and do not predict an offer or outcome.
- Installment nominal total
- $75,000.00
- Lump sum all-in cost
- $65,000.00
- Installment present value
- $72,478.91
- Installment upfront cash
- $15,000.00
Questions about the results
What does this tool include?
Compare the upfront funding and present cost of a lump sum offer with an installment offer. Lump cost includes its fee. Installment nominal cost includes deposit, fees and every payment. Present value discounts end-of-month installments at the entered annual rate divided by 12. Deposits and fees occur now.
What should I verify before relying on the result?
A discount rate is a comparison assumption, not a guaranteed investment return. Written settlement terms control default, releases and dates. Tax consequences are excluded.
What this result does and does not tell you
A discount rate is a comparison assumption, not a guaranteed investment return. Written settlement terms control default, releases and dates. Tax consequences are excluded.