As mentioned, all of my windfalls is based on net which is after taxes. So what would the gross be? Well, when assuming for the lottery, I will give myself 20% of whatever the gross will be. As you read this page, I am sure you would agree with me. Let’s look at what if I won $5,000,000. First, the lottery will give you $5,000,000 gross if you take the 30 year annuity. However, if you would be like me, and think you can handle such a large amount, you would likely go with the all cash option. This will cut your winnings to half. So now, that $5,000,000 turned into $2,500,000. Not very fair, but rules are rules. Now, comes the taxes. Obviously, if your state does not have income taxes, you would be in better shape. However, I would assume with just a high amount, I would pay 50% in total taxes. So now, my $5,000,000 went down to $2,500,000 lump sum to now $1,250,000 with taxes accounted for. Just to make sure I have account for all of the money properly, and cover for any under estimates, I just assume that my net is always 20%. So calculating the hard way, the final result is $1,250,000 and my calculations will be $1,000,000. If I was to win a windfall of money, then I won’t complain if I under estimated when doing my windfall budget. So, it will be fine if I was to win $5,000,000 and get $1,250,000 when budgeting for $1,000,000.