Alimony Lump Sum Present Value Calculator
Discount ongoing alimony payments to a present-value lump sum using a conservative monthly rate. Helpful for settlement negotiations when comparing upfront offers to continued payments.
Not legal advice. Confirm assumptions with your attorney or financial professional before negotiating support changes.
Examples
- $1,800 per month for 48 months at 4% annual discount → $80,928.25 lump sum equivalent.
- $2,500 per month for 24 months with no rate entered (defaults to 4%) → $57,598.14 lump sum equivalent.
FAQ
Why use a discount rate?
A discount rate reflects time value of money and investment opportunity cost when swapping future payments for a lump sum.
What if I expect inflation or risk?
You can increase the discount rate to reflect higher risk or inflation expectations, reducing the present-value figure.
Can I model a zero-rate court order?
Yes. Enter 0 for the rate to simply sum remaining payments without discounting.
Additional Information
- Uses an annuity-immediate present value formula with monthly compounding.
- Default discount rate is 4.00% annually if left blank; entering 0 treats payments as risk-free and sums them directly.
- Result is rounded to two decimals and shown in USD for negotiation clarity.