Lottery Payout Calculator

Important modeling notes

Post-tax mode starts with the stored federal baseline only because state taxes depend on where the ticket is claimed and where the winner resides. Use the claim-state selector to layer in the stored state tax assumption for a specific state. Annuity tax timing can create advantages or disadvantages depending on the winner’s situation, but that gets complicated quickly. This is a deterministic model, not tax or financial advice. Inflation-adjusted end values use 2.50% average annual inflation to translate the year-29 balances into today’s dollars. That changes purchasing-power framing, not which option leads at the selected end horizon. This model does not include a custom year-by-year inflation schedule, estate planning, trusts, or what happens if a winner dies before the payout stream ends.

Assumes 1 immediate payment plus 29 annual payments after that. Future values are measured at the end of the selected projection period.

Payout schedule formula

growth_factor = 1.05
first_payment = jackpot * (growth_factor - 1) / (growth_factor^n - 1)
payment_t = first_payment * growth_factor^t

Future-value formula

FV_annuity = SUM payment_t  invested_share  (1 + r)^(projection_years - t)

t = 0 is the immediate payment.

Annuity tax timing can create advantages or disadvantages depending on the winner’s situation, but that gets complicated quickly. This is a deterministic model, not tax or financial advice. Return inputs are nominal, and inflation-adjusted ending values translate the selected year-end balances into today’s dollars using the chosen average annual inflation rate.