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The cost of pre-settlement funding is determined by three numbers: the advance amount, the monthly rate, and the time until your case settles. Every funder's marketing speaks in vague monthly percentages, but plaintiffs need dollars. This page gives you the dollars.
Use the interactive calculator below to model your specific scenario. Move the sliders and you'll see the estimated payoff, the cost of funding, and the equivalent APR update in real time. All three figures use the standard industry tiered-compound model.
Move the sliders to see how an advance grows over time. The math below mirrors the industry standard tiered model — your real Instabridge quote may be lower.
How the Math Works
The calculator uses a tiered compound interest model — industry standard for pre-settlement funding. Each month, the current balance grows by the monthly rate. Accrual stops at the maximum tier count (Instabridge: 6 tiers), at which point your payoff is fixed regardless of further case duration.
The formula:
payoff = advance × (1 + monthly_rate) ^ min(months_to_settle, max_tiers)
So a $5,000 advance at 3.8% monthly with a 6-tier cap:
- Month 3: $5,000 × 1.038³ = $5,592
- Month 6: $5,000 × 1.038⁶ = $6,257
- Month 12: same as month 6 (cap hit) = $6,257
- Month 24: same as month 6 = $6,257
The cap is the most powerful feature of a fair funding contract. Without it, that month-24 number would be $12,403 — nearly double.
What the Calculator Doesn't Show
The calculator is a clean illustration of the math, but real underwriting adjusts several variables that aren't sliders:
- Case strength. Strong liability + documented damages = lower offered rate.
- Defendant solvency. Cases against well-insured defendants price more competitively.
- Attorney track record. Funders price based on the attorney's historical settlement times and outcomes.
- Existing liens. Multiple advances on the same case affect pricing.
For a real, case-specific quote, apply with Instabridge — you'll get a written payoff schedule reflecting your actual case, typically within 24 hours.
Worked Scenarios
Scenario A — Modest auto case, fast resolution
Plaintiff is rear-ended, clean liability, $30,000 of medical bills. Needs $3,000 to cover rent while in PT. Case settles 8 months later.
- Advance: $3,000
- Rate: 3.5% monthly compound, 6-tier cap
- Months to settlement: 8 → cap hits at 6
- Payoff: $3,690
- Cost of funding: $690
Scenario B — Medical malpractice, slow case
Plaintiff has $200K+ projected damages, complex liability, 24-month expected case duration. Needs $15,000 to bridge to settlement.
- Advance: $15,000
- Rate: 3.8% monthly compound, 6-tier cap
- Months to settlement: 24 → cap hits at 6
- Payoff: $18,772
- Cost of funding: $3,772
The 6-tier cap saves the plaintiff in Scenario B nearly $20,000 vs. an uncapped contract.
Scenario C — Workplace injury, fast pre-suit settlement
Plaintiff has clear OSHA-cited liability. Demand is sent at month 4, case settles at month 5.
- Advance: $5,000
- Rate: 3.8% monthly compound
- Months to settlement: 5
- Payoff: $6,028
- Cost of funding: $1,028
Comparing Pre-Settlement Funding to Alternatives
The calculator focuses on funding cost in isolation. The real comparison is to alternatives plaintiffs typically consider:
- Credit card. $5,000 balance at 24% APR carried 12 months = $1,200 interest, plus required monthly payments, plus credit damage. Pre-settlement funding has no monthly payment and no credit impact.
- Personal loan. $5,000 at 18% APR over 24 months = roughly $1,000 in interest, plus mandatory monthly payments, plus full personal liability if you can't repay.
- Early settlement at discount. The "free" option that often costs the most. Plaintiffs who settle under financial pressure recover 30–60% less than those who hold out.
The right comparison isn't APR-to-APR. It's risk-adjusted dollars net to the plaintiff after settlement.
Frequently asked questions
Mathematically exact for the inputs shown. Real Instabridge offers may be lower depending on case-specific factors. Real offers will never be higher than the calculator's output at the same advance and rate.
The Instabridge tier cap stops accrual after 6 monthly tiers. The payoff at month 6 is the maximum you'll ever owe, regardless of how long the case takes.
Most contracts have a minimum charge (typically equivalent to one or two months) regardless of actual case duration. The calculator assumes 1 month minimum.
Yes. The application is free, takes 3 minutes, and produces a real quote within 24 hours. No commitment to accept the quote.
The calculator caps at $25,000 for typical cases. Larger advances on catastrophic injury or wrongful death cases are available and priced individually — contact us directly.
Bottom line: The math is simpler than the marketing makes it sound. Run your scenario in the calculator above, and when you're ready for a real number, apply with Instabridge.
