Compare lump-sum and annuity lottery payouts.
Please do not make financial decisions based on these results.
What is the Lottery Annuity Calculator?
Compare lump-sum and annuity lottery payouts. To use the Lottery Annuity Calculator, enter advertised jackpot, years of payments, discount rate; it returns present value of annuity, average yearly payment, and shows them instantly as you type.
Where the Lottery Annuity Calculator fits
Compare lump-sum and annuity lottery payouts. The main figure it returns is the Present value of annuity, worked out from the values you enter.
It belongs with the other budget & planning tools. If you are comparing options or checking a result from another angle, try the Mega Millions Payout Calculator, Cell Phone Plan Calculator or the Budget Planner (50/30/20).
How to use the Lottery Annuity Calculator
- Fill in the fields. You will need Advertised jackpot ($), Years of payments, Discount rate (%). Start with your real monthly figures, even if they are rounded. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Present value of annuity, and the cards below show Average yearly payment. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Lottery Annuity Calculator using the default values shown in the calculator above:
Inputs
| Advertised jackpot ($) | 300,000,000 |
|---|---|
| Years of payments | 30 |
| Discount rate (%) | 5 |
Results
| Present value of annuity | $153,724,510.27 |
|---|---|
| Average yearly payment | $10,000,000.00 |
With these inputs the calculator returns Present value of annuity: $153,724,510.27. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Advertised jackpot ($) from 300,000,000 to 360,000,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Present value of annuity | $153,724,510.27 | $184,469,412.32 | +20% |
| Average yearly payment | $10,000,000.00 | $12,000,000.00 | +20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Lottery Annuity Calculator reports Present value of annuity and average yearly payment. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Results are only as good as the figures you enter; use real recent numbers. It is for information, not financial, tax or legal advice.
Frequently asked questions
Which is better: lump sum or annuity?
The lump sum gives control; the annuity protects against overspending and may carry a higher total.
Can I switch between monthly and yearly?
Yes. Amount fields on this calculator can be switched between a per-month and a per-year figure, so enter whichever you know.
How do I start a budget?
List your take-home income, list every regular expense, and compare. Adjust until spending is below income with room for savings.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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