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Lump Sum vs Annuity NPV Calculator

Compare a lump-sum payout (taxed) to an annual annuity.

Compare the after-tax net present value of a one-time lump-sum payout against an annual annuity over a chosen number of years, at a chosen discount rate. Useful for lottery, pension, or settlement decisions.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

$
$
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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

NPV_lump = lump · (1 − tax). NPV_annuity = annual · (1 − tax) · (1 − (1+r)^−n) / r.

In depth

Compare the after-tax net present value of a one-time lump-sum payout against an annual annuity over a chosen number of years, at a chosen discount rate. Useful for lottery, pension, or settlement decisions.