Finance tools
Lottery annuity calculator
Use this free lottery annuity calculator to turn a U.S. jackpot headline into a year-by-year payout schedule. Compare lump sum and annuity with illustrative federal and state tax estimates, then export CSV or PDF — no signup and no submit button. The default matches Powerball and Mega Millions (30 payments, 5% annual increase); choose Custom terms for level payouts on other games. For planning only; not lottery or tax advice.
How the 30-year lottery annuity payout works
A lottery annuity is the installment option behind most U.S. jackpot headlines: the annuity total on billboards is the sum of every future payment before tax. For Powerball and Mega Millions, that usually means 30 payments over 29 years — one payment soon after you claim, then 29 annual payments, each about 5% larger than the previous one.
The cash option is a separate, smaller lump sum. Lotteries publish the cash value each drawing from interest rates and sales; it is often near 52% of the advertised jackpot, but use the figure on your prize letter. You must normally choose cash or annuity within your lottery’s claim window.
The calculator below models gross schedules and illustrative after-tax amounts. For Powerball prize tiers, Power Play, and the nine-tier chart, see our Powerball payout calculator.
Graduated schedule
Year-by-year gross and estimated net, with cumulative totals and pagination.
Lump vs annuity
Side-by-side net totals using your cash value % and tax settings.
Powerball / Mega preset
30 payments and 5% annual increase — the headline-jackpot structure both games use.
CSV/PDF export
Full schedule with tax columns — calculations stay in your browser.
Who is this for?
Jackpot winners weighing cash vs annuity, family offices running what-if scenarios, or reporters checking a headline number — whenever you need a payment schedule before tier-level prize math. Not a substitute for your state lottery, a CPA, or your official claim forms.
Related tools: Powerball payout calculator (tiers + Power Play), present value calculator (discount future payments), compound interest calculator, and future value calculator.
How lottery annuity payments are calculated
A graduated annuity starts from a base payment and grows by a fixed rate each year. Payment in year n equals base × (1 + annual increase)n−1. The calculator solves for that base so all gross payments add up to the advertised jackpot before tax (the final payment absorbs cent rounding).
At 5% annual growth — the Powerball and Mega default — later checks can be several times larger than year one on a nine-figure jackpot. Set annual increase to 0% under Custom terms for equal yearly installments, which some state games use instead.
Enter the jackpot above to see payments instantly, or use the table below as a reference for a $1 million / 30-year / 5% schedule.
| Payment year | Gross payment ($1M jackpot, 30 payments, 5% increase) |
|---|---|
| Year 1 | $15,051 |
| Year 5 | $18,295 |
| Year 10 | $23,350 |
| Year 20 | $38,034 |
| Year 30 | $61,954 |
Graduated vs level payouts
Graduated (Powerball / Mega default): payments rise each year. Level (0% increase): each payment is jackpot ÷ payment count — for example $50,000 per year on $1M over 20 years. The schedule table shows gross, cumulative gross, and estimated net for either pattern.
Numbers in the table match this calculator’s engine for a $1 million advertised annuity. Change the jackpot or terms above the tool to regenerate the full 30-row schedule.
Example annuity schedules ($100M and $1B)
The same 30 payments and 5% growth formula applies whether the headline is $100 million or $1 billion — only the dollar amounts change. The table shows gross installments before tax at three milestone years (Powerball / Mega Millions preset).
Select the $100M, $500M, or $1B preset above the tool, then expand Payment schedule for all 30 years, cumulative gross, and estimated net for your state and filing status.
| Year | Gross ($100M annuity) | Gross ($1B annuity) |
|---|---|---|
| 1 | $1,505,144 | $15,051,435 |
| 15 | $2,980,081 | $29,800,812 |
| 30 | $6,195,375 | $61,953,748 |
On a $1 billion annuity, year-1 gross is about $15.05 million and year-30 about $61.95 million before tax, for 30 graduated payments that total the full headline amount. If the cash option were 52% of the annuity value, that lump sum would be about $520 million gross before tax — the real percentage changes every drawing.
Net take-home depends on withholding, brackets, and state. Use the compare cards for lump-sum vs annuity net totals instead of relying on gross billboards alone.
Lump sum vs annuity
Lump sum pays the published cash value in one shot — you can invest or spend it, but a large prize can mean a heavy tax bill in the claim year. Annuity pays the full advertised total in installments over time, which can steady spending and spread taxable income across years; each payment is still taxed when you receive it.
Neither option is always better after taxes. Run both paths in the calculator with your state and filing status to compare estimated net totals. If you want to compare future installments to today’s cash in investment terms, use our present value calculator with your own discount rate — this tool does not bake in a return on the lump sum.
| Factor | Lump sum (cash) | Graduated annuity |
|---|---|---|
| Total gross vs headline | Cash value % of jackpot (often ~52%) | Full advertised annuity total |
| Timing | One payment soon after claim | Many payments over 20–30+ years |
| Tax pattern | Large income in claim year | Taxable income each payment year |
| Flexibility | Invest, spend, or gift (with planning) | Fixed installments; spending discipline |
To model growing a cash payout over time, pair results with our compound interest calculator or future value calculator.
Federal and state taxes on lottery annuity payments
Lottery prizes are taxable income. Payers often withhold 24% federal on large payments (see IRS Topic 419). Jackpots can still push you into the top 37% federal bracket when you file, so you may owe more than was withheld — especially on a large lump sum in a single year.
With an annuity, each installment is taxed when paid. That can spread federal and state liability across decades, but a big year-1 payment after a record jackpot can still land in high brackets. The schedule export includes federal withholding, estimated additional federal tax, state tax, and net per row.
State tax depends on where you live when you claim (rules vary; some states have no broad income tax on lottery prizes). Select your state in the tool for an illustrative estimate — not official withholding tables or multi-state residency advice.
| Tax line in results | What it means |
|---|---|
| Federal withholding (24%) | Amount often withheld at source on large lottery payments |
| Additional federal tax (est.) | Illustrative tax beyond withholding when income hits higher brackets |
| State tax (est.) | Residence-based estimate; zero in no-tax states in our model |
| Estimated net | Gross payment minus federal and state lines shown for that year |
Withholding vs what you may owe
Withholding is tax taken when you are paid (often 24% federal on large prizes). What you owe for the year depends on total income, deductions, and credits — you may owe more at filing or receive a refund. Estimates use the same lottery tax logic as our Powerball payout calculator; export CSV or PDF to review with a CPA.
Powerball and Mega Millions preset
Select Powerball / Mega Millions to apply the headline-jackpot rules both games share: 30 payments with about a 5% raise each year, plus lump-sum compare at your cash value percentage. Smaller prizes, ticket prices, and add-ons still differ by game.
Use this page when you want a flexible annuity model; use the Powerball tool when you need tier prizes, odds, or Power Play.
| Need | Use this page | Use Powerball payout calculator |
|---|---|---|
| Jackpot annuity schedule + taxes | Yes — preset + schedule | Yes — jackpot mode |
| Custom 20–40 payments or 0–10% increase | Yes — Custom terms | Jackpot mode only (30 / 5%) |
| Nine-tier prize chart + odds | No | Yes — Prize chart mode |
| Power Play on non-jackpot prizes | No | Yes |
| Mega Millions tier chart | No — schedule math only | Powerball tiers (link out for Mega rules) |
Powerball payout calculator — prize chart, Power Play, and tier taxes. This page — custom payment count, escalation rate, and schedules for any advertised jackpot.
Custom payout terms (20, 25, or 30 years)
State and regional games sometimes pay equal annual installments over 20, 25, or 30 years with no yearly raise. Choose Custom terms, enter the payment count from your prize rules, and set annual increase to 0% for level payouts.
You can model 2 to 40 payments and an annual increase from 0% to 10% — useful when a game graduates payments on a different schedule than the 5% Powerball/Mega default.
| Term (level payments) | Payments | Gross per year ($1M jackpot, 0% increase) |
|---|---|---|
| 20-year | 20 | $50,000 |
| 25-year | 25 | $40,000 |
| 30-year level | 30 | $33,333 |
The schedule updates live with gross, cumulative gross, and estimated net. For graduated state games, keep a positive annual increase instead of 0%.
How to use this calculator
Everything recalculates as you type — there is no submit button. Start with the preset that matches your game, then refine jackpot, cash value %, and tax settings. Results appear in the compare cards; the full year-by-year table sits in the collapsible schedule panel.
Export tip
Use CSV for the full schedule with tax columns in Excel or Google Sheets. PDF captures summary inputs and compare totals — handy for a quick printout before a tax appointment.
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Frequently asked questions
How does the 30-year lottery annuity payout work?
You get 30 payments spread over 29 years — one soon after you claim, then annual installments that usually grow about 5% per year on Powerball and Mega Millions jackpots. Together, gross payments equal the advertised jackpot before tax.
Payments start smaller and rise over time. Open the schedule in the calculator to see each year’s gross, cumulative total, and estimated net.
How much do you get from a lottery annuity?
You receive the full advertised jackpot in gross installments over the annuity schedule — not the smaller one-time cash option. Each payment is taxable when paid; net amounts depend on federal withholding, your tax bracket, filing status, and state.
Use the compare cards and year-by-year schedule here for estimates. Your state lottery’s prize letter has the official gross and cash figures.
Is it better to take the lottery lump sum or annuity?
There is no single right answer. Lump sum pays less in total gross but gives you the cash value upfront; annuity pays the full headline amount over time but locks you into future installments. Taxes, spending goals, age, and investment plans all matter.
After taxes, either path can come out ahead depending on state and income. Compare estimated net totals in this calculator with your filing status and state selected.
How do I calculate lottery annuity payments?
Split the advertised jackpot into a payment series that grows by your annual increase rate: year 1 is the base, and each later year multiplies by (1 + increase). At 0% increase, divide the jackpot by the number of payments for equal installments.
Enter the jackpot, payment count, and increase % above — the tool solves for the base and lists every year. Example: $1 million, 30 payments, and 5% growth starts near $15,051 gross in year 1.
What is the difference between the advertised jackpot and the cash option?
The advertised jackpot is the annuity total — the sum of all future installment payments before tax. The cash option is the one-time payment if you skip the annuity, typically a fraction of the headline amount set each drawing.
You choose one path when you claim. Enter your lottery’s cash value % in the calculator to compare lump sum and annuity side by side.
How much does a $1 million lottery annuity pay per year?
About $15,051 gross in year 1 and $61,954 in year 30 before tax with 30 payments and 5% annual growth (payments sum to $1M). Powerball and Mega Millions pay once per year on that default schedule, not monthly.
Net amounts depend on filing status and state. For level payouts, $1M over 20 years at 0% growth is $50,000 gross per year — use Custom terms.
How much would a $1 million lottery annuity pay per month?
Powerball and Mega Millions do not pay monthly on the default jackpot schedule — you get one installment per year. For budgeting only, dividing year-one gross (~$15,051 on a $1M / 30 / 5% plan) by 12 is roughly $1,254 per month.
Use the annual figures in the schedule table for planning, not a monthly direct deposit from the lottery.
How much tax is withheld on lottery annuity payments?
Often 24% federal withholding on large U.S. lottery payments, taken when each installment is paid. States may withhold too, depending on where you live.
Withholding is not always the final tax you owe — you may still owe more at filing or receive a refund. Use your W-2G and a tax professional when you file.
What is the difference between tax withholding and what I owe on lottery annuity payments?
Withholding is tax taken when you are paid — often 24% federal on large lottery prizes. What you owe for the year depends on all income, deductions, and credits. You may owe more at filing or get a refund if too much was withheld.
This calculator shows illustrative withholding and estimated additional federal tax per payment. It is not a substitute for filing or official state tables.
Do I pay state tax on lottery annuity payments?
Many states tax lottery installments as income. States with no general income tax — such as Florida, Texas, Tennessee, and Washington — often do not tax lottery prizes, but confirm current rules. Other states apply their own rates on each payment.
Select your state of residence in the calculator for a planning estimate, not an official withholding table.
How long does a lottery annuity last?
For Powerball and Mega Millions jackpots, about 29 years from claim — 30 payments total, including one soon after you claim and 29 annual follow-ups. Custom terms let you model shorter or longer schedules (for example 20 equal annual payments).
Your game’s rules set the exact claim deadline and payment timing; this tool models the math once you know payment count and growth rate.
What does a $1 billion lottery annuity payout schedule look like?
Thirty graduated payments on the Powerball / Mega preset (5% annual growth): gross year-1 is about $15.05 million and year-30 about $61.95 million before tax, totaling the full $1 billion annuity value.
Select the $1B preset above the calculator and open the payment schedule for all years, cumulative gross, and estimated net for your state.
Are Powerball and Mega Millions annuity schedules the same?
Yes for headline jackpots: both use 30 graduated payments with about 5% annual growth. Prize charts, ticket prices, and add-ons differ between games.
Use the Powerball payout calculator for tier-level Powerball detail; use this page for a flexible schedule and lump vs annuity compare.
Can I model 20- or 25-year lottery payouts?
Yes. Choose Custom terms, set the number of payments, and set annual increase to 0% for equal yearly installments (common on some state games).
You can also use a positive annual increase for graduated state games that are not the 5% Powerball/Mega default.
How is this different from the Powerball payout calculator?
This tool is game-agnostic — any advertised jackpot, custom payment count (2–40), and escalation rate, plus lump vs annuity compare. The Powerball payout calculator adds the nine-tier prize chart, Power Play, and tier tax estimates.
Use both when you need Powerball tier detail and a separate flexible annuity model.
Can I sell my lottery annuity payments?
Sometimes, depending on state law. You may be able to transfer future payments through a court-approved sale to a third party. Discounts, fees, and approval rules vary widely.
This calculator does not quote buyout prices — talk to your lottery office and qualified legal and tax advisors before any sale.
Is this lottery annuity calculator free, official, or tax advice?
It is free with no signup — calculations run in your browser and you can export CSV or PDF. It is not official and not affiliated with any lottery. Results are not tax or legal advice.
Use numbers from your prize letter when you claim, and work with qualified tax professionals. Ordio provides planning estimates only.