Offer in Compromise Calculator
See roughly what the IRS would expect you to offer, based on what you own and what is left of your income each month.
Offer in Compromise Estimator
Estimates the minimum the IRS would expect, using its own formula. Leave a field blank if it does not apply.
To apply you must have filed all required returns, made this year's estimated tax payments, and not be in an open bankruptcy.
This is an estimate, not legal or tax advice. It follows the IRS method in Form 656-B (Rev. 4-2026) and IRM 5.8.5: assets at 80% of market value less loans, bank cash less $1,000, $3,450 excluded for one vehicle (two on a joint offer), $11,980 excluded from valuables and personal effects, and remaining monthly income times 12 for a lump sum or 24 for periodic payments. The IRS may value assets differently, may limit your expenses to its standards, and decides whether to accept an offer.
How the IRS Values an Offer
The IRS accepts an offer in compromise when it believes the offer is about as much as it could collect from you before the collection deadline. It calls that figure your reasonable collection potential. It has two parts: the equity in what you own, and the income left over each month after necessary expenses.
For assets, the IRS usually starts from 80% of market value, called the quick sale value, and subtracts loans secured by the asset. It leaves the first $1,000 in your bank accounts out of the count and excludes $3,450 of value for one car, or two cars on a joint offer, and $11,980 of personal belongings and valuables. For income, it takes your monthly income, subtracts expenses it allows under its standards, and multiplies what is left by 12 if you pay the offer within 5 months, or by 24 if you pay over 6 to 24 months.
What You Pay to Apply
The application fee is $205. A lump-sum offer must include 20% of the offer amount, and a periodic offer must include the first monthly payment, with payments continuing while the IRS reviews it. Taxpayers who meet the IRS low-income guidelines can skip the fee and the payments. If the IRS does not decide within 24 months, the offer is treated as accepted.
Why Your Real Number May Differ
The calculator uses the figures you enter. The IRS checks them against bank statements and its own expense standards, and it often allows less for housing or a car than people actually spend, which raises the income it counts. It can also value property above or below 80%. Many offers fail on these details, which is why the documentation matters as much as the math.
Talk to a Tax Attorney About Your Numbers
A calculator gives you a starting point. A free, confidential consultation tells you what the IRS is likely to accept in your case.