Lottery jackpot is a prize for winning a lottery game. The value of the jackpot is determined by the amount of money in the prize pool and the number of tickets sold. The jackpot can be a one-time payment or an annuity that pays out annual payments over 30 years. The annuity option tends to have a higher value because of interest rates, but this calculator is based on the assumption that the winner will choose the lump sum payout.

A big prize, especially a multimillion dollar one, attracts a lot of people who want to buy tickets. This results in a higher ticket sales total and, in turn, an even bigger jackpot. This process continues until there is a winner, or the jackpot rolls over to the next drawing.

Giant jackpots are becoming more common, with five prizes over a billion dollars in the last 2021 alone. This is largely because of higher interest rates, which mean that lump sum payments grow larger over time. But the reason that jackpots grow to these apparently newsworthy amounts is actually much simpler: lottery officials changed the odds so that prizes would roll over more frequently.

In a typical scenario, when you win a multimillion dollar jackpot, you will have to split the sum with between three and seven other winners. This can reduce your personal reward by up to 40%. It is also important to consider taxes, which vary depending on the state in which you live. Finally, it is wise to keep your identity private if you become a millionaire – this will protect you from scammers and long-lost friends who suddenly find out about your new fortune.