pay out: meaning, definition, pronunciation and examples
HighNeutral to formal; common in business, insurance, and legal contexts.
Quick answer
What does “pay out” mean?
To give someone money, typically as a payment, compensation, or distribution.
Audio
Pronunciation
Definition
Meaning and Definition
To give someone money, typically as a payment, compensation, or distribution.
To disburse funds, often in a lump sum or as part of a financial transaction; can also imply suffering a loss or incurring a cost.
Dialectal Variation
British vs American Usage
Differences
Usage is largely similar; however, 'payout' as a noun is more commonly written as one word or hyphenated in American English (e.g., 'payout'), while British English may use 'pay-out'.
Connotations
In both varieties, it implies a transfer of money, but in British English, it is frequently associated with insurance claims and dividends.
Frequency
Equally frequent in both dialects, with slight preference in financial contexts.
Grammar
How to Use “pay out” in a Sentence
transitive: pay out [object] (e.g., pay out the money)intransitive: pay out (e.g., the insurance paid out)Vocabulary
Collocations
Examples
Examples of “pay out” in a Sentence
verb
British English
- The insurer paid out on the claim after the fire damage.
American English
- The insurance company paid out the claim following the tornado.
adjective
British English
- The payout schedule is outlined in the contract.
American English
- The payout schedule is detailed in the agreement.
Usage
Meaning in Context
Business
The corporation will pay out annual bonuses based on performance metrics.
Academic
The research analyses how trusts pay out incomes to beneficiaries over time.
Everyday
She had to pay out a fortune for her wedding dress.
Technical
The software automatically pays out winnings to players in online casinos.
Vocabulary
Synonyms of “pay out”
Watch out
Common Mistakes When Using “pay out”
- Using 'pay out' interchangeably with 'pay off' for debts.
- Incorrect word order: saying 'pay the out money' instead of 'pay out the money' or 'pay the money out'.
FAQ
Frequently Asked Questions
Yes, it can be separable: e.g., 'pay out the funds' or 'pay the funds out'.
The noun form is 'payout' (or 'pay-out'), referring to a sum of money paid out.
Yes, it can be intransitive, as in 'The insurance policy paid out after the accident.'
'Pay out' means to disburse money, often formally, while 'pay up' means to pay what is owed, typically under pressure.
To give someone money, typically as a payment, compensation, or distribution.
Pay out is usually neutral to formal; common in business, insurance, and legal contexts. in register.
Pay out: in British English it is pronounced /peɪ ˈaʊt/, and in American English it is pronounced /peɪ ˈaʊt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “pay out of pocket”
- “pay through the nose”
Learning
Memory Aids
Mnemonic
Imagine money flowing out of a wallet when you 'pay out'.
Conceptual Metaphor
Money as a fluid that flows out from a source.
Practice
Quiz
What is the primary meaning of 'pay out'?