Lottery Annuity Calculator
What is a Lottery Annuity Calculator?
A lottery annuity calculator helps winners decide between a lump sum payout or annual payments over a specified number of years. This tool also accounts for taxation, providing insights into the post-tax values of both options. The lump sum is typically a smaller amount (e.g., 70% of the jackpot) received upfront, while the annuity divides the total prize over a set period. Understanding these options ensures informed decision-making about your winnings.
How to Use the Lottery Annuity Calculator
- Enter the total jackpot amount in USD in the first field.
- Select the annuity period (20, 25, or 30 years) from the dropdown menu.
- Input the applicable tax rate as a percentage in the provided field.
- Click the “Calculate” button to view the results.
- Review the results: the lump sum payout, annual pre-tax payment, and annual post-tax payment. Take note of the provided explanation for the calculations.