Lottery Annuity Calculator

Your details

The headline jackpot number as announced by the lottery, before any deductions.
USD
Major US lotteries pay roughly 50-65 % of the advertised jackpot as an immediate lump sum. Powerball and Mega Millions typically offer around 60 %.
%
Powerball and Mega Millions pay over 30 years; some state lotteries use 20 or 25.
years
Each year the payment rises by this percentage. Powerball uses 5 %; flat annuities use 0 %.
%
Choose the state where you will claim and pay taxes on your winnings.
When on, each payment is reduced by estimated federal and state income tax. Federal rate uses 2024 bracket math; state uses a flat approximate top rate.
The annual return you expect to earn if you invest the lump sum. Used to compute the present value of the annuity stream so you can compare both options on equal footing.
%
Currency
Total annuity (gross)Lump sum wins
$500,000,000

Sum of all annual payments before tax

Total annuity (after tax)$261,754,367
Lump sum (cash value)$300,000,000
Lump sum (after tax)$156,341,812
Annuity present value$162,645,390
First-year payment$7,525,718
Final-year payment$30,976,874
Better option (by PV)Lump sum
Annuity$924,399,757
Lump sum$456,341,812

Difference: $468,057,945 (Annuity higher)

  • Total gross
  • After tax
  • Present value

The lump sum puts more money in your pocket at a 7% return.

  • Your 30-year annuity totals $500,000,000.00 gross; after estimated taxes you keep about $261,754,367.50.
  • The cash option (60% of the jackpot) is $300,000,000.00 gross; after taxes you keep about $156,341,812.25.
  • Discounted at 7% per year, the annuity stream is worth about $162,645,389.68 in today's dollars.
  • NY levies approximately 10.90% state tax on top of the 37% federal rate, so the effective bite on large payments is significant.

Next stepA tax attorney and a fee-only financial planner can help you invest the lump sum to stay ahead of the annuity growth rate.

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