xx Annuity Cashflow Calculator

(Updated for 2024 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

This section allows you to enter the Annuity, Cash, Yield and Ratio values in the column labeled 'Value'. These are shown in green. In addition, you can select your Federal Tax filing status and State of residence.

Detailed Help for Table T1

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

This Tax Summary table shows you how much money you will receive and pay, depending on whether you opt to take the Cash or Annuity payouts. These are shown in the Gross & Net rows.

Table T2 Detailed Help

T3: xx Annuity Cashflow Payments
Google Vis - cashflow payments

Table T3 above shows each of the individual cashflow payments that will be made by xx annuity. Each payment shows:

  • Gross Payment: The full amount of the yearly payment (from this, you will pay taxes)
  • Fed Tax: The amount of Federal tax due for that payment.
  • State Tax: The amount of state tax due
  • Net Payment: The amount of money you will keep after taxes.
  • Yield: The implied yield required to fund this payment
  • Discount Price: The amount of money that needs to be deposited to fund this payment
At the bottom of the table, all values are totaled (except yield because this does not apply).

The total sum of the payments will be equal to the annuity jackpot value.

And, the total sum of the discounted prices will be equal to the advertised cash value.

All items are important to the lottery jackpot winner. However, particular attention should be paid to the Fed and State Tax totals, and the Net Payment total because this is the amount of money you will keep.

G1: xx Tax Breakdown
RIGHT Pie Graphs - Percents - TOP
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G2: xx Annuity vs Net of Tax
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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.