🎰 Mega Millions Payout Calculator
Mega Millions winners choose between a 30-year annuity — yearly payments that grow 5% each year — and a smaller cash lump sum paid at once. The advertised jackpot is the annuity total; the cash option is what the prize money is actually worth today.
Enter the advertised jackpot, the cash option value and your tax rates to compare both choices after tax, including the first and last annuity payments.
How to use this calculator
Enter the advertised jackpot, the cash option and your tax rates to compare both payout choices.
- Enter the Advertised jackpot amount.
- Enter the Cash option value from the lottery.
- Set your Federal and State tax rates.
- Press Calculate to compare the after-tax annuity against the after-tax cash.
Frequently asked questions
What is the difference between the annuity and cash option?
The annuity pays the full advertised jackpot as 30 yearly payments growing 5% each year. The cash option is a smaller lump sum — what the prize money is worth today — paid at once.
Why is the cash option so much smaller?
A dollar today is worth more than a dollar in 29 years. The cash value is the present value of those 30 future payments at current interest rates.
How are lottery winnings taxed?
In the US, winnings face federal income tax (the top bracket is 37%) plus any state tax. About 24% is typically withheld up front, with the rest settled at tax time.
Which option leaves more money after tax?
The annuity total is larger even after tax, since it pays the whole jackpot. The cash option wins only if you can invest the lump sum at returns high enough to beat the annuity's built-in growth — run both numbers before deciding.