What context can I use each word in?
Learn when and how to use these words with these examples!
payout
Example
The insurance company provided a large payout to cover the damages. [payout: noun]
Example
The employee received a generous payout upon retirement. [payout: noun]
Example
The company announced a record-breaking payout to its shareholders. [payout: noun]
payment
Example
I made a payment for my online purchase using my credit card. [payment: noun]
Example
The contractor requested a payment of $500 for the completed work. [payment: noun]
Example
He promised to make the payment by the end of the month. [payment: noun]
Good things to know
Which word is more common?
Payment is a more commonly used term than payout in everyday language. Payment is a versatile term that covers a wide range of financial transactions, while payout is a more specific term used in certain contexts, such as insurance or investments.
What’s the difference in the tone of formality between payout and payment?
Both payout and payment can be used in formal and informal contexts. However, payout may be more commonly used in business or finance settings, while payment can be used in various personal and professional contexts.
