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# Discount Rate Calculator

This calculator provides both the nominal annual rate and effective discount rate of a structured settlement funding transaction. Please feel free to place this on your blog or website.

**What does this calculator do?** This calculator calculates the discount rate of a structured settlement funding transaction.

**What is a discount rate?** A discount rate is a metric that determines the present value of a future payments. Structured settlement funding transactions are priced using this rate.

This settlement calculator calculates the rate of a structured settlement factoring transaction. To use this settlement calculator please complete the form above and find out how much your structured settlement is worth today.

The output that this settlement calculator provides is known as a discount rate and is the discounted rate that that a company will pay for your structured settlement payment rights.

**How do I use this calculator?** This calculator can be used to determine the discount rate of a present value. If a company offers a lump sum of money for a future cash flow, this is known as the present value of the cash flow or payment stream. An appropriate discount rate for a structured settlement funding transaction is between 8-14% (depending upon the payment stream). First enter the present value of the cash flow (lump sum offer from company), next enter the payment stream information, then click calculate.

**How do I place this on my web site?** To place this calculator on your web site, simply copy and paste the code below into the appropriate spot on your blog or web site. Please do not remove any code from the textarea below, otherwise the calculator will not function properly.