xx Annuity Cashflow Calculator

(Updated for 2021 Tax Rates )

The xx lottery offers jackpot winners the choice of either collecting their winnings as a single lump-sum payout, or as a multi-payment annuity. In xx, the annuity consists of xx payments paid one year apart. Each xx payment xxx.

The cash payout is approximately 50-80% of the advertised annuity jackpot, but this percentage varies depending on the level of interest rates. To be fair to the winner, the cash value should be the same as the total required to fund the time-delayed annuity payments.

Both payment values are publicized and paid by the State where the ticket was sold. Regardless of payout method (cash or annuity), the State will withhold 25% for Federal Taxes, which is typically 4% to 14% less than the actual taxation rate you will need to pay. However, State taxes are not withheld at the time of payment. This means that when filing taxes, a winner may have to pay a combined 4% to 28% more in taxes depending on the state and amount of winning payment.


To help you decide whether you want to take the annuity or cash payouts, we have provided this xx Annuity Calculator which contains three tables below. The table T1 is the lottery information input screen. There, you can change the annuity and cash payouts, yield and ratio, as well as the federal and state tax rates. Once you enter your data and either move the cursor or hit return, the corresponding payout structure and tax summary tables will be updated automatically. The table on the left T3 illustrates each of the individual annuity cash payments. And, the table T2 on the bottom right shows the tax implications based on both federal and state rates.

Related Pages - (Note, you can access these using the menu above)
Hot Cold Numbers - Showing frequency
Probability of Winning - Shows chances of multiple winners or why jackpots are not always won
( New )   Jackpot Investment Calculator - Compares 30 year cashflow investment of the Annuity against the lump sum Cash Option Jackpot (side by side)

T1: xx Input Area

Name Value Hold Num
Annuity 0
Cash 1
Yield 2
Ratio 3
Fed Tax 0.00 4
State Tax 0.00 5
T2: xx Tax Summary
Name Annuity Cash Diff Pct
Gross 0.00 0.00 0.00 0.00
FedTax 0.00 0.00 0.00 0.00
StateTax 0.00 0.00 0.00 0.00
Net 0.00 0.00 0.00 0.00
%FedTax 0.00 0.00 0.00 0.00
%StateTax 0.00 0.00 0.00 0.00
%TotalTax 0.00 0.00 0.00 0.00
T3: xx Annuity Cashflow Payments
Google Vis - cashflow payments
G1: xx Tax Breakdown
RIGHT Pie Graphs - Percents - TOP
G2: xx Annuity vs Net of Tax
The Mega Millions, Powerball, and Super Lotto Plus annuity payments are not constant. They increase a certain percentage each year to adjust for inflation.

However, the Lotto Texas payments are all the same. That is why the graph G2 shows straight lines for each payment.
Whether you take the Annuity or Cash is a matter of preference. Originally, we believed the Annuity is best. But, in very low interest rate environments (less than 2 percent), we now think taking Cash is best.