Mega Millions Payout Calculator
Compare the lump-sum cash option with the 30-year annuity for a Mega Millions jackpot, with tax rough estimates.
Input Data
Results
At a glance:A Mega Millions jackpot can be taken as a cash option (a smaller lump sum now) or a 30-year annuity (the full amount in graduated payments). Both are taxed. Cash option ≈ jackpot × cash option%; after-tax cash = cash option × (1 − federal − state); after-tax annuity ≈ annuity × (1 − federal − state).
Formula
Cash lump sum = jackpot × cash option%.
Cash after tax = cash lump sum × (1 − federal% − state%).
Annuity after tax = annuity total × (1 − federal% − state%).
$$Lump_{net} = Jackpot \times \dfrac{cash\%}{100} \times \left(1 - \dfrac{tax\%}{100}\right)$$$$Annuity_{net} = Jackpot \times \left(1 - \dfrac{tax\%}{100}\right)$$How to Use
- Enter the advertised jackpot.
- Enter the cash option percentage and your tax rates.
- Compare the after-tax cash lump sum with the after-tax annuity total.
FAQ
Is the advertised jackpot the amount I actually receive?
Not exactly. The headline jackpot is the total of the 30-year annuity option. If you take the cash option, you receive only about 50%–60% of it (the 'cash value'), and both options are then taxed. So the advertised figure is not what lands in your bank account.
Why is the lump-sum cash only about half of the advertised jackpot?
The advertised jackpot is the sum of 30 yearly payments spread over about 29 years. The lottery funds those payments by investing a smaller principal (buying long-term bonds), so the cash option is that principal — the present value of the future stream discounted at current interest rates. Because 'a dollar today is worth more than a dollar in 30 years', discounting shrinks the amount. The cash factor floats with interest rates, typically 50%–60%; a higher rate means a lower factor.
What taxes apply to a US lottery win?
The US federal government withholds 24% upfront and the final rate for large winnings can reach 37%, plus a state tax of 0%–about 11% depending on where you live. This calculator simplifies by using one combined tax rate rather than separating federal and state. Non-US residents face additional withholding rules, so treat the figures as illustrative only.
Does this apply to Hong Kong's Mark Six?
No. This tool is denominated in US dollars and models the US Mega Millions (lump sum vs 30-year graduated annuity with tax). Hong Kong's Mark Six pays a one-off, tax-free prize with no annuity or withholding mechanism, so this model does not apply.
Should I take the lump sum or the annuity?
It depends on your discipline and investment ability. The annuity pays the full amount over 30 years and removes the risk of blowing the money, but you wait decades for it and lose control. The lump sum is paid now, so if you invest it well you could grow it beyond the annuity total — but you also bear the risk of mismanaging it. Compare the after-tax figures here, then weigh your own self-control, age and financial goals.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.