Lottery Annuity Calculator: Monthly Payout From a Jackpot
Work out the level monthly payout from a lottery jackpot taken as an annuity, paid out over a fixed number of years.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly income | Total drawn | Growth while drawing |
|---|---|---|---|
| $10M · 3% · 30yr | $42,160.40 | $15,177,745.21 | $5,177,745.21 |
| $1M · 3% · 20yr | $5,545.98 | $1,331,034.23 | $331,034.23 |
| $50M · 4% · 30yr | $238,707.65 | $85,934,753.18 | $35,934,753.18 |
| $250k · 2.5% · 10yr | $2,356.75 | $282,809.71 | $32,809.71 |
How This Calculator Works
Enter the advertised annuity jackpot, the rate the unpaid balance earns, and the payout term. The calculator finds the fixed monthly payout that exhausts the jackpot exactly at the end of the term while the remainder of the balance keeps earning interest.
The Formula
Fixed-Period Drawdown
PV = savings pot, r = monthly rate (annual ÷ 12), n = number of monthly payments
Worked Example
A $10 million jackpot crediting 3% over 30 years pays about $42,160 a month. Over the full term that adds up to roughly $15.2 million — more than the jackpot, because the unpaid balance keeps earning along the way.
Key Insight
A lump-sum lottery payout is much smaller than the advertised annuity, because the lottery would otherwise invest the money itself to fund those future payments. The choice between lump sum and annuity is a real-world version of the same time-value math.
Frequently Asked Questions
Why is the annuity total larger than the lump sum?
The lump sum is the present value of the future annuity payments. Annuity payments grow because the unpaid balance keeps earning interest until each one is paid.
Are lottery payouts taxed?
Yes — typically as ordinary income, often with withholding taken at payout. The amount here is pre-tax; what you actually receive is lower.
Do real lottery annuities pay a level amount?
Not always. Many large US lotteries pay an annuity that grows each year. This calculator models a level annuity as an estimate; check the specific lottery's schedule for the real figures.
Lump sum or annuity — which is better?
A lump sum offers flexibility and investment control; an annuity provides decades of guaranteed income and protects against spending it all at once.
What rate should I assume?
Lotteries typically fund annuities by buying long-term government bonds. A rate close to the cited long-term Treasury yield is a reasonable reference.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source. The starting values for annuity rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
The monthly payout is the fixed amount that draws the jackpot down to zero over the chosen term, with the balance earning a steady rate. Real lottery annuities often grow each year and are taxed; this is a level-payment estimate.
Written by Ugo Candido · Last updated May 17, 2026.