Powerball Payout Calculator (Lump Sum vs Annuity)

Compare the cash and 30-payment annuity options for a US Powerball jackpot using a simplified 2026 federal income-tax model. Enter the published amounts and your ticket share to estimate nominal after-tax payments and the investment return that equalizes their present values.

How to use this tool

1. Enter the advertised jackpot and the cash value shown for that drawing.
2. Enter how many tickets won and your share if you were in a pool.
3. Pick your filing status and add other income before the standard deduction.
4. Enter your state and local tax rate on lottery prizes, then compare the two options and the schedule.

Formula

First annuity payment = Jackpot × 0.05 ÷ (1.05³⁰ − 1); payment k = first × 1.05^(k−1)

The annuity is 30 graduated payments over 29 years, each 5% larger than the one before, adding up to the advertised jackpot. Federal tax is the extra tax the prize adds on top of your other income, using the 2026 brackets after the standard deduction. The illustrative prepayment is 24% of the prize, while final federal tax is calculated progressively. State tax is a flat rate you enter. Other income is entered before the basic standard deduction. Every annuity year reuses the same income, deduction and 2026 brackets; this is a constant-law scenario, not a tax forecast.

Example

Take a $2,000,000 jackpot with a $1,000,000 cash value, a single filer with no other income and no state tax. Taxable income is $1,000,000 − $16,100 = $983,900, and the 2026 brackets give $320,000.25 of federal tax, leaving $679,999.75. With an illustrative $240,000 prepayment, the modeled balance is $80,000.25. The annuity starts at $2,000,000 × 0.05 ÷ 3.32194 = $30,102.87 and grows to $123,907.49 by the 30th payment.