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Results are hypothetical illustrations based on the numbers you enter and simple assumptions: a constant return, with no taxes, fees or inflation unless stated. They are not predictions or guarantees; real returns vary from year to year and can be negative, and investing can lose money. Educational content only. Not financial advice. See our Disclaimer.
Quick answer: Take the $1 million if you will invest it: at 8% it grows to about $2.16M in 10 years, versus about $1.80M for $10,000 a month invested as it arrives. If you will just keep the cash, the payments win ($1.2M vs $1M).
The gut answer
Most people grab the million. Some do the quick multiplication — $10,000 × 120 months = $1,200,000 — and switch to the payments. Both are missing a piece.
The real answer
If you invest what you receive, the million today compounds for the full ten years: at 8% it becomes about $2.16M. The $10,000 payments, invested as they arrive, grow to about $1.80M. The lump sum wins by roughly $350,000 — because money you have now has more time to work.
Flip the return to 0% (you just keep the cash) and the payments win by $200,000. The tipping point is around a 3.7% return: below that, take the payments; above it, take the million. In other words, the answer depends on whether you would actually invest it.
The lesson
A dollar today is worth more than a dollar next year — but only if you put it to work. Taking the million and spending it slowly is the one option that loses to both.
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Open calculator →Questions people ask
Is $1 million today better than $10,000 a month for 10 years?
In plain cash the monthly payments add up to $1,200,000, so they win on paper. If you invest both at 8% a year, the $1 million lump sum grows to about $2.16 million while the monthly payments reach about $1.8 million — the lump sum wins by about $358,000 because it compounds from day one.
What if I take the $10,000 a month and do not invest it?
Then you simply finish with $1,200,000 after ten years — about $200,000 more than the lump sum in cash, but roughly $960,000 less than the invested lump sum.
At what return do the $10,000 monthly payments win?
Below roughly a 3.7–3.8% yearly return. Above that, the $1 million invested on day one grows to more than the payments do over 10 years.
How is this calculated?
The lump sum grows at 8% a year for 10 years ($1,000,000 × 1.08^10 ≈ $2.16M). Each $10,000 payment grows from the month it arrives, adding up to about $1.80M. Both are hypothetical, with no taxes or fees.