What does this calculator compute?

A settlement replaces the balance you owe with a single (or short-schedule) payment the funder accepts as full satisfaction. The offer is the balance times the settlement percentage. The provider fee is what a negotiation firm or attorney charges on top — commonly 15–25% of the enrolled (settled) debt, sometimes a percentage of the savings instead. Total out of pocket is offer plus fee; what you “save” is only the remainder after both.

Worked example

You owe $100,000 and the funder agrees to 60%. The offer is $60,000. A 20% fee on the settled debt adds $12,000, so the total is $72,000 — you clear the account for 72% of the balance, saving $28,000 before tax. On a 6-month installment plan that is $12,000 a month; if the agreement is paid in installments, missing one can void the deal and put you back at the full balance.

Which fee structure costs more?

A fee “on savings” sounds smaller but is charged on a smaller base, so the same percentage number costs more when it is applied to savings. A 20% fee on savings equals roughly a 20% fee on the settlement only when the settlement is near 50% of the balance; at a 70% settlement, 20% of savings is equal to about 8.6% of the settled amount. Always convert both quotes to dollars before comparing.

What the calculator leaves out

  • Taxes: forgiven business debt can be taxable income. Involve a CPA before you sign — the “saved” figure above is pre-tax.
  • Retainers, monthly service fees, and contingency minimums some firms charge regardless of outcome.
  • Credit damage, UCC liens, and what happens to a pending lawsuit — court deadlines do not pause for negotiations.
  • Whether the funder will actually take the percentage you enter: settlements depend on hardship evidence and what you can pay.

How to use this responsibly

Use it to price a proposal before you make it, and to check a negotiator's quote: their fee in dollars should match this math exactly. Background: how MCA settlement works, the five forms of MCA debt relief, what happens in a default, and the payback & APR calculator if you are still comparing offers rather than settling one.