The Indianapolis 500 continues to solidify its status as one of the richest races in motorsports, with the 2025 edition marking the fourth consecutive year that the total payout has reached an all-time high. This year, Álex Palou of Chip Ganassi Racing took home $3.8 million, winning the prestigious race for the first time, from a record total purse of $20,283,000.

The Indianapolis Motor Speedway (IMS) announced the figures on Monday, confirming the continued upward trend in prize money. The average payout for INDYCAR drivers participating in the race also saw an increase, reaching $596,500, which exceeds the previous year's average of $543,000.

The total purse is composed of awards from the Indianapolis Motor Speedway and the NTT INDYCAR SERIES, along with various designated and special awards, and is influenced by factors such as ticket sales and sponsorships. Considering this year's race was a total sell-out, the purse has significantly risen.

In 2024, Josef Newgarden won the race and pocketed $4.288 million, which included a $440,000 roll-over bonus from BorgWarner for earning back-to-back wins, from a total purse of $18,456,000. The purse has grown steadily in recent years, from $16,000,200 in 2022 to $17,021,500 in 2023.

The winner's prize money depends on several factors, including laps led, sponsorships, and pole winner. Approximately 20% of the purse goes to the winner, with the rest distributed among the 33-driver field based on finishing position, laps led, and special awards. The remaining purse is distributed progressively, with second-place Marcus Ericsson likely earning ~$1.05 million.

Beyond the substantial financial rewards, the Indy 500 winner also receives a replica of the Borg-Warner trophy, often called the "Baby Borg." The winner also gets a bottle of milk.

The substantial increase in the Indy 500 purse reflects the growing popularity and commercial success of the event. Increased television ratings, combined with strong attendance figures, have contributed to the rising prize money.

J. Douglas Boles, president of INDYCAR and IMS, emphasized the historical significance of the race and the magnitude of Palou's achievement. He noted that the Month of May featured a grandstand sellout crowd and intense on-track action and that Palou's victory added to his growing list of accomplishments.

The Indy 500 purse is among motorsport's largest. The purse is funded by Indianapolis Motor Speedway (IMS), NTT IndyCar Series awards, sponsors, and TV revenue.

While the winner takes home a significant portion of the purse, the distribution extends to the entire field, ensuring that every participant receives some compensation. However, it's worth noting that the costs associated with entering the Indy 500 can be substantial, with some drivers needing a top-five finish to actually profit from participating.