Every number has a basis.

Use the quote, not an expected savings rate

The worksheet adds written terms. An explicitly labeled example uses invented amounts to explain the math. There is no default prediction of what a creditor will accept.

A provider projection, a creditor’s offer and an accepted agreement are different. The status you select remains beside the result.

The calculations

Fee based on enrolled debt

Enrollment balance × fee percentage

Fee based on debt reduction

(Enrollment balance − creditor payments) × fee percentage

Account charges

One-time account charges + (monthly account charge × stated months)

Known quoted cost, before possible tax

Creditor payments + company fee + account charges + other separately payable charges

Currency is calculated in cents. A percentage fee is rounded to the nearest cent, half up, before the line items are summed. This is an arithmetic convention; your contract may specify different rounding.

A reduction-based fee needs a nonnegative reduction and the contract’s stated definition. If creditor payments exceed enrollment, the worksheet asks you to clarify the fee rather than silently producing a negative fee. Mixed rates across debts require an itemized dollar fee.

Unknown is not zero

An empty cost field remains unknown. With missing components, the result is a subtotal of entered items and a list of questions—not a complete cost. If a monthly account charge is explicitly zero, the missing duration does not create a cost. If the monthly charge is positive, its duration is necessary.

Tax always remains outside the calculation. Canceled debt can be taxable, subject to exceptions and exclusions; we do not determine which applies to you.

When two totals are comparable

The worksheet only describes a lower entered cost when both quotes have complete line items, cover all of the same debts, use matching enrollment balances and dates, and have the same stated quote status. This last check avoids treating a projection as equivalent to an accepted offer.

Even then, a lower entered cost is not an endorsement, a guarantee or a suitability assessment. Payment timing, creditor participation, contract terms and affordability matter separately.

What is kept separate

• Deposits fund creditor payments and fees; they are not a second cost.
• Interest already included in a creditor settlement is not added twice.
• Payment notes are not used to invent a contractual monthly payment.
• Taxes, legal outcomes, credit effects and financing costs are not estimated.
• Partial quotes do not create a difference against the entire starting debt.

How the guides are prepared

Government guidance and the current federal regulation support statements about the federal fee rule, alternatives and risks. Provider pages support only attributed descriptions of that provider’s pricing. Examples are original and hypothetical.

Sources were checked October 15, 2026. There is no claim of professional legal, tax or financial review. State law and individual contracts can change the analysis.