Annuity or cash option: which should you pick?

The annuity spreads the prize over 30 years and lowers the tax bill in the winning year, but it depends on the payer's financial strength. The cash option gives a smaller but immediate lump sum you can invest right away.

Does the annuity grow over time?

Yes: official payments rise by about 5 % a year, which explains the gap between the first and last payment. The simulator applies that progression.

Are the amounts shown after tax?

No. The simulator applies an indicative 24 % federal withholding and leaves room for state withholding, which ranges from 0 % to more than 10 %.

Free simulator

Jackpot simulator: 30-year annuity or cash option

A jackpot of several hundred million dollars reads very differently depending on how it is paid. This simulator compares the 30-year annuity and the cash option, including federal and state withholding.

Jackpot settings

Advertised jackpot amount

Payout option

Federal withholding

State income tax

Winners sharing the prize

Advertised amount

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Estimated cash option: —

Estimated taxes: —

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Estimated net for this winner

Indicative simulation, without discounting. The net amount depends on your state of residence, any tax treaties and the payout option chosen; non-resident winners are taxed under their own country rules.

Annuity payments, year after year

Year	Paid that year	Cumulative paid

The jackpot, tier 1

Annuity payments grow by about 5 % each year, which explains the gap between the first and the last one. The jackpot is split equally between all winning lines of the same draw.

Read the rules →

Tier 2: $1,000,000

Five matching numbers without the bonus ball pay a fixed $1,000,000, doubled or more with Megaplier. That prize is always paid as a lump sum, never as an annuity.

Annuity or cash option?

The annuity spreads the prize over 30 years and smooths taxes; the cash option hands you a smaller but immediate lump sum. Neither is always better: it depends on local tax rules and on the winner's plans.