Lump-sum value of support
The payments
Your assumptions
Neither rate is looked up. Use the rate your expert, your court or the parties have agreed.
Applied once a year, on each anniversary of the first payment.
Worth today as one sum
$165,065.93
Paid over time (96 payments)
$192,000.00
Life insurance to secure it
If the payer died at the start of a year, the sum that would replace every payment still to come, at your rate. Cover can step down as the years pass.
| Year | Paid that year | Cover needed at its start |
|---|---|---|
| 1 | $24,000.00 | $165,065.93 |
| 2 | $24,000.00 | $147,151.68 |
| 3 | $24,000.00 | $128,520.86 |
| 4 | $24,000.00 | $109,144.81 |
| 5 | $24,000.00 | $88,993.72 |
| 6 | $24,000.00 | $68,036.59 |
| 7 | $24,000.00 | $46,241.16 |
| 8 | $24,000.00 | $23,573.93 |
Before tax. Periodic support and a lump sum can be taxed differently, and whether they are depends on where the parties are and when the order or agreement was made. Works up to 50 years of monthly payments.
How it is worked
Each payment is discounted back to today at your yearly rate. For monthly payments the yearly rate is turned into the monthly rate that compounds to it over twelve months. A yearly increase is applied once a year, on each anniversary of the first payment, the way an indexed order steps up.
The insurance column is the same sum worked again at the start of each year on the payments still to come: what would have to be paid out if the payer died at that point.
The figures are before tax. Periodic support and a lump sum can be taxed differently, and whether they are depends on where the parties are and when the order or agreement was made. Nothing you type is saved or sent anywhere.
Keep it with the file
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