What our Powerball calculator provides is a quick overview of the gross and net (after taxes) winnings you'd receive for both options – allowing you to make a more informed decision when comparing the two.įinally, as an added feature, our tool also breaks down the annuity option into a handy payout schedule so you know how much you'll receive each year.
Since the lump sum and annuity option award different payouts, it only follows that your tax liability (federal tax + state tax) will also be different for both. On the other hand, the annuity option awards the winner with the full amount or 100% of the jackpot – starting with one initial payment, followed by annual payments over the next 29 years. Lump Sum/Cash Option Calculator Gross Payout (~61% of the jackpot)Īs you might already know, when a player wins the Powerball jackpot, they have to choose between a single lump sum or 30 annual payments to receive their prize.Ĭhoosing the lump sum, also known as the cash option, reduces the jackpot size to approximately 61% of the original amount, but awards it all at once to the player.
