Some say winning the lottery is just a lucky coincidence, while others swear by careful planning of number combinations in a lottery calculator. Indeed, with so many possible combinations and different odds of winning, players hope that luck is on their side no matter what they play. Still, here we are talking about lottery calculators and how to match as many digits are you can to get as much money as possible.
Lottery Winnings Calculator
Research conducted in New York City showed that even up to one-third of Americans who play the lottery think that becoming a jackpot winner is the only way for them to become financially secure. With that kind of incentive, it is clear why the lottery winnings calculators have become so popular lately.
Jackpot Value Payout
When calculating the odds of winning, people often overlook the jackpot value payout. This is the total amount that they will be awarded after the tax rates. Just a heads up, this sum is never the advertised amount. You see, when a player wins the jackpot, they have the option to choose between a single lump sum or 20 to 30 annual payments to claim their prize.
If someone picks the lump-sum payment, which also means the cash option, they get approximately 61% of the original amount. So, even though significantly reduced, winners get the money all at once. The annuity payment option awards the total amount of the jackpot to the winner but in 20 to 30 years.
And because these two options offer two different payouts, the winner’s tax liability will vary for both as well. If they go for the lump sum, they will pay another sum for the federal tax and state tax than with the annuity option.
How Does the Lottery Odds Calculator Work?
Before you play a lottery draw, you should write down the number of digits you play with from the pool. This is the simplest way of calculating the lottery odds. Of course, to increase your odds of winning, there are several other things to find, such as:
• The number of balls that are drawn in total.
• The number of matches you would like to score. Here you can go for the jackpot (all numbers matched) or for any of the lower-tier prizes. Just remember, the lower number of matches, the higher your chances will be.
• The total number of balls in the pool. For instance, if you are playing a 6/49 lottery, there are 49 balls in the pool.
The Lottery Formula
Here is a breakdown of the formula that the calculator uses to give you the odds of winning.
x = C(n,r) / [C(r,m) * C(n-r, r-m)]
In this formula, the values are as follows:
– n is the number of balls in the pool;
– r is the number of balls to be drawn;
– m is the expected number of matches;
– C(n,r) is the number of combinations (in how many ways can you pick r out of n numbers?)
– C(r,m) and C(n-r, r-m) stand for the number of combinations to choose m out of r and r-m out of n-r, respectively.
Let’s put these values into practice with the following example:
In a 6/59 lottery format, a player has 1 in 45,057,474 chances of winning the jackpot. Statistically, the player would have to play at least 45 million times to win the jackpot once.
The Bonus Balls Calculations
Many lotteries don’t just stop at the primary numbers but also include a bonus number that helps people win some of the other prize tiers. There are two types of bonus balls, and they affect the odds of winning differently.
The first type is when the bonus ball is drawn from the same pool as the other five or six primary numbers. This is the more favorable of these two types as it gives better odds overall. So, for instance, when playing lotto with six digits of fifty-nine in total, the seventh bonus ball is randomly selected from the same fifty-nine.
As for the second type of lotteries that draw the bonus number from an additional pool, the odds are slightly less favorable. This is because the numbers matched can be repeated, so the pool of possible numbers lengthens automatically. Since one number can come up twice, the calculator is set to find the odds of a player getting m matches and selecting a bonus ball number on top.
As an example, if you want to win the jackpot in any lottery with two drums, with this formula, you will get the odds of matching all numbers (five or six – depending on the lottery) plus the bonus ball.
The State Tax Calculator
Countries here lottery winnings are considered as income tax will apply tax rates to the prize the same way they do for wages or salary. In the United States, some winners are subject to pay federal tax and state tax on their prize money. The federal taxes are 25%, while the state tax is different for each state. It is worth noting that some don’t have a state tax but they still have federal taxes. These are Florida, California, Delaware, Tennessee, Texas, New Hampshire, South Dakota, Wyoming, and Washington State.
This is why using the tax calculator to find how much the state taxes will lower your final prize amount is very important.
Lottery Calculator Summary
All in all, calculating your odds of winning and the possible number combinations is a smart way of playing the lotto. By doing so, you know whether a lottery is worth it or not. Plus, it helps you with tracking all possible hot and cold numbers and knowing the final prize money amount after the federal taxes and state tax. Of course, luck has its place here as well, so we wish you lots of it when playing.