Calculate your net payout after taxes and prize splits.
Lump Sum (Cash Value)
Annuity (30 Annual Payments)
Calculation Results
Your Individual Share (Gross):
Cash Value (Estimated):
Federal Tax Amount:
State Tax Amount:
Total Net Take-Home:
*Annuity figures represent the total amount received over 30 years before inflation adjustment.
Understanding Your Lottery Payout
Winning the lottery is a life-changing event, but the "Advertised Jackpot" is rarely what ends up in your bank account. To understand the real value of your ticket, you must account for the payout method, the number of winning tickets, and the inevitable tax obligations.
Lump Sum vs. Annuity
Most major lotteries like Powerball and Mega Millions offer two payment options:
Lump Sum: You receive a one-time payment. This is the "Cash Value" of the jackpot, typically representing about 60% of the advertised headline figure. While the amount is smaller, you have immediate access to the full capital.
Annuity: The full advertised jackpot is paid out over 29 or 30 years. Each payment is usually 5% larger than the previous one to account for inflation. While you receive more total dollars, you are subject to future tax law changes.
The Tax Burden
In the United States, lottery winnings are treated as ordinary income. The IRS automatically withholds 24% for federal taxes on large prizes, but since the top tax bracket is 37%, you will likely owe significantly more when you file your return. State taxes vary significantly; states like Florida or Texas charge 0%, while New York can take over 8%.
Real-World Example
Suppose you win a $500 Million jackpot as a single winner. If you choose the Lump Sum, the cash value might be roughly $310 Million. After a 37% Federal tax ($114.7M) and a 5% State tax ($15.5M), your final take-home amount would be approximately $179.8 Million.
function calculateLottery() {
var jackpot = parseFloat(document.getElementById('jackpotAmount').value);
var payoutType = document.getElementById('payoutType').value;
var fedRate = parseFloat(document.getElementById('federalTax').value) / 100;
var stateRate = parseFloat(document.getElementById('stateTax').value) / 100;
var winners = parseInt(document.getElementById('numWinners').value);
if (isNaN(jackpot) || jackpot <= 0 || isNaN(winners) || winners <= 0) {
alert("Please enter valid positive numbers for jackpot and winners.");
return;
}
// 1. Calculate Individual Share
var share = jackpot / winners;
// 2. Adjust for Lump Sum (Industry average is approx 62% of advertised for modern Powerball/MegaMillions)
var baseValue;
if (payoutType === 'lump') {
baseValue = share * 0.62;
document.getElementById('payoutLabel').innerText = "Cash Value (Estimated):";
document.getElementById('annuityNote').style.display = "none";
} else {
baseValue = share;
document.getElementById('payoutLabel').innerText = "Total Annuity Value:";
document.getElementById('annuityNote').style.display = "block";
}
// 3. Calculate Taxes
var fedTax = baseValue * fedRate;
var stateTax = baseValue * stateRate;
var net = baseValue – fedTax – stateTax;
// 4. Format and Display
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
maximumFractionDigits: 0
});
document.getElementById('grossShare').innerText = formatter.format(share);
document.getElementById('cashValue').innerText = formatter.format(baseValue);
document.getElementById('fedTaxPaid').innerText = "-" + formatter.format(fedTax);
document.getElementById('stateTaxPaid').innerText = "-" + formatter.format(stateTax);
document.getElementById('netTotal').innerText = formatter.format(net);
document.getElementById('lotteryResult').style.display = "block";
// Smooth scroll to results
document.getElementById('lotteryResult').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}