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Lottery Annuity Cash Converter (works for all lotteries)
Payout method
Automatic Tax Withholding Rates
Federal rate: 24% | State rate: 0 %
Estimated gross payout
Average annuity payout
$0
Estimated total taxes withheld
$0
Estimated net payout
$0
How to Use the Lottery Annuity Cash Converter?
Get the exact annuity amount or the net lump-sum payment amount after taxes for any lottery prize using the cash converter:
- Tap on “I’m Foreigner” if you are not a US resident or have played a US lottery from abroad using lottery sites.
- Write the total prize amount as announced in the jackpot.
- Select the US state that organizes that lottery from our list.
- Pick either lump-sum or annuity lottery payment according to your choice.
- Our system automatically reveals your gross and net payout, as well as each annuity, separately in a table.
Our lottery annuity cash converter is always accurate and free to use. Use it whenever you are uncertain of what is the best payout option for you.
Our Lottery Annuity Cash Converter Methodology
Unlike random generators, our lottery annuity cash converter has to be accurate and based on exact science. We can divide our methodology into two sections according to your choice to verify how much you would receive with a one-time payment or being paid in annuities:
- Lump-sum Payments:
- The gross payout, which is the starting point from any annuity or lump-sum lottery payment, is considered with an immediate 40% reduction from the announced jackpot for lump sums. That is just the counterpart of choosing full payment straight away and simple to code into our cash converter.
- Final reduction due to lottery taxes that deduct 24% to 30% from federal taxes plus possible state tax depending on where you played.
- Annuity: Simpler to explain but harder to calculate, it is applied by our cash converter using the following tested formula:
Payout Year N = Gross payout / [(1 − 1.0530) / 0.05] × 1.05^n−1
From that amount, each year has the deduction of the corresponding federal and state tax. As years go by, the amount increases according to that formula.
Complex for you or not, all those calculations are unnecessary if you simply put our online lottery annuity cash converter to work with your information.
