Differences between pay off and pay out

Pay off means to pay the full amount of a debt or to receive a benefit as a result of hard work or effort, while pay out means to give someone money, especially as compensation or as a result of a bet.

Meanings and Definitions: pay off vs pay out

Learn how to use these expressions through these examples

Pay off

1Completely repay a debt.
The mortgage will be PAID OFF in twenty - five years.
2Produce a profitable or successful result.
Their patience PAID OFF when he finally showed up and signed the contract.

Pay out

1To distribute money, especially as a result of an investment.
It’ll be a few years before our investments start paying out.
2To spend or distribute money, especially a large amount.
We’ve paid out thousands of pounds in health insurance over the years.

Usage Examples: pay off, pay out in Sentences

Learn how to use these expressions through these examples

pay off

Example

I plan to pay off my student loans within five years.

Example

She pays off her credit card balance every month.

pay out

Example

The company will pay out dividends to its shareholders.

Example

The insurance company pays out claims to its customers.

Similar Expressions(Synonyms) of Pay off

settle a debt

To pay the full amount owed to a creditor or lender.

Example

After years of saving, he finally managed to settle his debt and become debt-free.

be worth it

To have a positive outcome or result that justifies the effort or cost.

Example

All the hard work and long hours were worth it when she received a promotion and a raise.

come through

To fulfill a promise or commitment, especially in a difficult situation.

Example

Her friends came through and helped her move to a new apartment on short notice.

Similar Expressions(Synonyms) of Pay out

compensate for

To provide money or benefits to someone as a result of a loss, injury, or mistake.

Example

The insurance company agreed to compensate for the damages caused by the car accident.

shell out

To spend or pay a large amount of money, especially unwillingly.

Example

He had to shell out a lot of money to repair his car after the engine broke down.

fork over

To give or pay money, especially when it's unexpected or unwanted.

Example

He had to fork over some cash to pay for the parking ticket he received earlier that day.

Explore more Phrasal Verbs

Here are some phrasal verbs with the same verbs or particles

Phrasal Verbs with “pay”

Phrasal Verbs with “off”

Phrasal Verbs with “out”

Differences in pay off vs pay out: Usage, Formality, and Tone

Frequency in Daily Use: pay off or pay out?

In everyday conversation, pay out is more common than pay off. This is because pay out is used in various contexts such as insurance claims, gambling, and investments. On the other hand, pay off is mainly used when talking about debts or loans. So, while both phrases are used, pay out is more versatile and commonly used.

Informal vs Formal: Contextual Use of pay off and pay out

Pay off and pay out are both informal phrases that are suitable for casual conversations. However, pay out can also be used in formal settings such as legal or financial contexts.

Tone and Implication: The Nuances of pay off and pay out

The tone of pay off and pay out can differ based on context. Pay off often carries a sense of relief or satisfaction when referring to paying off a debt or achieving a goal, while pay out can have a neutral or negative tone, especially when referring to compensating for a loss or mistake.

pay off & pay out: Synonyms and Antonyms

Pay off

Synonyms

Antonyms

Pay out

Synonyms

Antonyms