payout

American  

[pey-out] / ˈpeɪˌaʊt /

noun

1. an act or instance of paying, expending, or disbursing.

2. money paid, expended, or disbursed, as a dividend or winning.

   He went to the betting window to collect his payout.

---

verb phrase

1. 1. to distribute (money, wages, etc.); disburse.

   2. to get revenge upon for an injury; requite.

   3. to let out (a rope) by slackening.

Etymology

Origin of payout

First recorded in 1900–05; noun use of verb phrase pay out

Explanation

When money is handed over it's a payout. Not only does your favorite professional basketball player have a huge salary, he also gets a $50,000 payout if his team makes the quarterfinals! Payout usually refers to money paid as a prize, an investment dividend, or an insurance settlement. You'll probably get a large insurance payout after a tree falls on your house, but you'll have to wait a while. And don't expect any kind of payout from a lottery ticket — the odds of winning a jackpot are extremely low! Payout originally referred to oil wells: the cost of drilling was only worthwhile if the eventual payout would be high.

Example Sentences

State officials are investigating that deal, including a subpoena from the California Energy Commission seeking details about the payout.

From Los Angeles Times • May 24, 2026

They don’t have to limit their review to whether or not the individual deserves a payout.

From Slate • May 22, 2026

The council said it was inappropriate to comment on individual cases, adding the cost of the payout was in the council's accounts.

From BBC • May 22, 2026

It said the hit would not affect the dividend payout at the end of its current fiscal year.

From The Wall Street Journal • May 22, 2026

The insurance company would like to know what its average payout is per policy written.

From "Innumeracy: Mathematical Illiteracy and Its Consequences" by John Allen Paulos