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Lottery Payout Calculator

See what a lottery jackpot is really worth after tax. Enter the advertised jackpot, the cash option and your tax rates to compare the lump sum with the annuity, payment by payment, and find the investment return at which taking the cash comes out ahead.

Quick examples
$

The headline figure is the total of all annuity payments.

$

Announced with each jackpot, typically about half the headline.

%

24% is withheld when you are paid. Big winners owe up to 37% at tax time; enter 37 for the full bill.

%

0 in states that do not tax lottery winnings.

%
%
Your numbers stay in your browser. They are never uploaded.
Lump sum after tax$34,200,000
Tax on the lump sum
$10,800,000
First annuity payment after tax
$1,143,909
Last annuity payment after tax
$4,708,485
All annuity payments after tax
$76,000,000
Annuity’s worth today after tax
$34,317,272
Better at that return
Annuity
Break-even return
5.02%

Annuity payments

PaymentBefore taxTaxAfter taxReceived so far

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      Formula

      Lump sum after tax = cash value × (1 − federal rate − state rate)
      First annuity payment = jackpot × g ÷ ((1 + g)^N − 1), where g is the yearly increase and N the number of payments; each later payment is (1 + g) times the one before
      Annuity’s worth today = Σ payment after tax ÷ (1 + return)^k, with the first payment at k = 0
      Break-even return = the return at which the annuity payments are worth exactly the cash value

      How to use it

      1. Enter the advertised jackpot and the cash value announced with it.
      2. Enter the federal rate — 24% withheld, or up to 37% for the full bill — and your state’s rate.
      3. Keep 30 payments rising 5% a year, or match the terms of your game.
      4. Compare the lump sum with the annuity’s worth today and the break-even return.

      Worked examples

      A $100 million jackpot with a $45 million cash option, 24% federal withholding, no state tax, 30 payments rising 5% a year

      Lump sum after tax
      $34,200,000
      Tax on the lump sum
      $10,800,000
      First annuity payment after tax
      $1,143,909
      Last annuity payment after tax
      $4,708,485
      All annuity payments after tax
      $76,000,000
      Annuity’s worth today after tax
      $34,317,272
      Better at that return
      Annuity
      Break-even return
      5.02%

      A $1 million prize paid as 20 equal payments or $600,000 cash, with 24% federal and 5% state tax

      Lump sum after tax
      $426,000
      Tax on the lump sum
      $174,000
      First annuity payment after tax
      $35,500
      Last annuity payment after tax
      $35,500
      All annuity payments after tax
      $710,000
      Annuity’s worth today after tax
      $501,755
      Better at that return
      Annuity
      Break-even return
      6.18%

      A $500 million jackpot with $225 million cash, taxed at the full 37% federal rate, comparing at a 4% return

      Lump sum after tax
      $141,750,000
      Tax on the lump sum
      $83,250,000
      First annuity payment after tax
      $4,741,202
      All annuity payments after tax
      $315,000,000
      Annuity’s worth today after tax
      $163,968,279
      Better at that return
      Annuity

      How jackpot annuities work

      The advertised jackpot is the total of all the annuity payments. The cash option is the money actually in the prize pool, which the lottery would otherwise invest to fund the annuity — that is why it is usually about half the headline. The big US multistate jackpots pay the annuity as 30 payments over 29 years, each 5% larger than the last, so the first payment is about 1.5% of the jackpot and the last about 6.2%.

      US taxes on winnings

      Lottery winnings are taxable income in the US. The payer withholds 24% for federal tax on prizes over $5,000, but a jackpot puts almost all of it in the top 37% bracket, so expect to owe more when you file. States differ: some have no income tax and some, such as California for its own lottery, do not tax lottery winnings, while others take several percent. This calculator applies one flat rate to every payment; your actual tax depends on your other income, deductions and future tax law. This is an estimate, not tax or financial advice.

      Questions people ask

      How much is a $100 million jackpot after taxes?

      With a $45 million cash option and 24% federal withholding, the lump sum is $34,200,000. At the full 37% federal rate it is $28,350,000, before any state tax.

      Should I take the lump sum or the annuity?

      Compare the break-even return with what you could earn. For a $100 million jackpot with $45 million cash and payments rising 5% a year, the annuity works out to about 5.02% a year on the cash; if you can reliably beat that after tax, the lump sum wins.

      How much is each annuity payment?

      On a $100 million jackpot paid as 30 payments rising 5% a year, the first is $1,505,144 before tax ($1,143,909 after 24%) and the last is $6,195,375 before tax.

      How much tax is withheld from lottery winnings?

      24% federal on prizes over $5,000, plus any state withholding. On a $600,000 cash prize with 24% federal and 5% state tax, $174,000 is taken and you keep $426,000.

      Related calculators

      Annuity CalculatorThe regular payout a lump sum can fund for a set number of years.Present Value CalculatorWhat a future sum or stream of payments is worth today.Investment CalculatorProject an investment with monthly contributions, returns and inflation.Compound Interest CalculatorGrow a balance with compound interest and optional monthly deposits.Inflation CalculatorWhat today’s prices become, and what today’s money will buy, after inflation.