Which Is Better: Cash Or Payments?

This tool compares two payment options: receiving a lump sum today and living off the proceeds after paying income taxes; or receiving an annuity for a specific number of years and paying taxes each year. Lotteries are often paid as annuities. The tool discounts the annuity to a present value so that you can compare which option is the better deal. Generally, the option with a higher present value is the better deal. The savings interest rate that you designate is used to calculate present value for the annuity payment option.