Installment calculator
Compare Your Sale: Lump Sum vs. Structured Installment
Each year's index growth permanently raises every monthly payment after it, so growth stacks over time and never goes down. The minimum guarantee payment is paid even if the index earns nothing, and total payments are guaranteed to return at least your sale price. IRR is your annual pre-tax return on the sale price.
View year-by-year schedule
| Year | Monthly | Year total | Guaranteed | Index growth | Principal | Interest | Taxable gain | Est. tax | After tax |
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Monthly payments start about two months after closing; index growth takes effect with each December payment. Indexed payouts recover your sale price as principal evenly over the term, and all growth above it is interest; fixed-rate payouts split principal and interest by amortization. Principal's taxable share is the gain-to-price ratio. Interest is taxed as ordinary income. Payout years assume no other income. Illustrative only — actual index growth varies year to year and is not guaranteed.
Spreading the sale keeps each year's payment in the lower brackets — a lump sum would stack the entire gain into the top bracket at once. The faded bar shows the same pattern continuing through your final year.
Calculated using 2026 federal capital gains rates.