Mega Millions Payout Calculator (2024)

This Mega Millions Payout calculator calculates how much you will get from a lump sum payout or an annuity payout if you win the Mega Millions jackpot lottery. The calculator also creates the Mega Millions payout chart to reveal how the annuity payout stream will work.

Congratulations 🍾, if you're here because you've won and you're contemplating between taking the cash or annuities option — you have a 'good' problem to worry about 😉. Suppose you're still hoping to win; good luck! 🙏 You're in the right place to get all the information about how the Mega Millions Payout works.

Also, try our Powerball calculator, or check out our lottery tax calculator if you want to have a more flexible configuration.

You have to understand that the probability of winning the Mega Millions jackpot is not significant. And winning does not mean that you will get all of the total prize money, as you will find out using the Mega Millions winnings calculator.

Our tool also determines the federal and state tax rates that apply to your winnings and analyses the lump sum cash payout and annual annuity payments. Hence, if you need to use the Mega Millions tax calculator tool, you can evaluate the actual payout by state.

We present the results in an easy-to-understand table for you to compare so you can make an informed decision between the Mega Millions payout options.

Mega Millions payout refers to the payment from winning the Mega Millions lottery jackpot.

How does Mega Millions payout? Winners of the lottery can choose to collect their Mega Millions payout amount at once as a lump-sum cash payout or in annual payments as an increasing annuity payout over 30 years.

It is good to learn about the Mega Millions payout because the jackpot advertised is the total sum you will receive if you choose the annuity payment option, not the cash payout. It means that if you choose the lump-sum cash payment, you will receive the equivalent of the cash required to fund the annuity payments with its effective interest rate over 30 years.

Choosing to get paid at once today will get you only about 80% of your total jackpot winnings, and after you pay taxes on your winnings, you'll probably end up with around 50%. Still, the jackpot is usually a lot of money for you to quit your job, and it might be worth it if you have a good investment option that offers a considerably better return.

Besides, the interest rate used in evaluating the annuity payment varies, so investing the cash amount into a business account, either a fixed deposit or recurring deposit, or a 529 account for your child are options worth considering.

If you choose the annuity payments option, you'll get 100% of your jackpot! Your Mega Millions payout amount for every annuity will increase by 5% annually until the entire amount paid out. You will only pay taxes on the amount you receive every year, so you'll incur less tax liability in the long run (you can check it in your state using this Mega Millions payout calculator). On the other hand, you lose the chance of investing in other high-yield opportunities. There's always a compromise.

The Mega Millions payout calculator helps you compare these two options and break down the annuity payment from the first installment payment to the 30^th year so you can decide what is best for you.

It is quite straightforward to use the Mega Millions payout calculator because you only need to provide three main pieces of information to analyze your payout:

1. In the field "How much did you win?" input how much you won in the Mega Millions jackpot.

2. Select how you file your taxes in the field "What is your filing status?".

3. Choose your state from the drop-down list next to "Where do you live?" to determine tax rate we use in the Mega Millions payout calculator by state.

4. You're done! You'll find a tabulated overview of the gross payout, federal taxes, state taxes, and net payout on your winnings for both the lump sum payout or an annuity payout. Also, the Mega Millions payout calculator breaks down the yearly annuity payouts into an easily readable payout schedule.

Note that in the advanced mode, you may set an annuity rate that applies to the annuity payout option.

Before you use our tool to learn how to calculate Mega Millions payout, note that:

• The Mega Millions payout calculator provides an estimate of the lump-sum payout and annuity payout option based on the data provided by the user.

• The annual prize amount estimated by the Mega Millions winnings calculator may be different from what the lottery office pays as the actual prize. To get the exact prize amount, please get in touch with the state lottery office.

• Other levies not accounted for may impact the Mega Millions tax calculator's estimated prize amount in addition to changes to the federal and state tax requirements.

• All calculated figures are based on a single prize winner.

The figure that can be won varies from as low as $1,000 to over $500 million depending on the number of winners. This is because the Mega Millions cash lump-sum payout is the available jackpot prize amount won at the time of the draw.

Check the actual Mega Millions payout today on the lottery website to know how much is in the jackpot.

The cash lump-sum payout is the amount won at the draw, which is equal to a percentage of the total revenue generated from ticket sales. The annuity payout option is the cash lump-sum payout plus interest gained over 30 years.

Hence, the cash lump-sum payout is less than the annuity payout.

If you live in a different state from where you win a Mega Millions jackpot, you may have to pay more in taxes. The state where you register your lottery ticket may deduct the state and federal taxes from your winnings.

Then, you'll still have to file taxes in the state you live in. It is worth consulting with a professional tax advisor and accountant to avoid any tax surprises.

The best option between the lump-sum cash payout and the annuity payout depends on your preference. The annuity option allows you to access 100% of your jackpot winnings over a long period.

Still, the cash option offers you the chance to invest in higher interest rate opportunities immediately.

The main disadvantage to the annuity payout option is that the federal or state tax rate can increase during the annuity payment schedule.

If that happens, you may end up paying more in taxes. Another disadvantage is that you may miss out on investments with high returns during the remaining 29 years.

You can get a quick estimate for the Mega Millions cash value calculator by deducting 37% of the amount advertised as the Mega Millions payout today. For example:

1. The advertised amount is $1,000,000.
2. Assume that at least $370,000 will go towards paying taxes.
3. It leaves the cash payout for Mega Millions at around $630,000.
4. Use an online calculator to get the more precise Mega Millions payout chart for annuities.