Lost Wages and Future Earnings Calculator
Estimate your lost wages from missed work and projected future earnings losses due to injury, illness, or disability. This tool calculates both past lost income and the present value of future earning capacity losses.
Past Lost Wages
Future Earnings Loss
Adjustments
Formulas Used
Daily Wage Rate
- Hourly:
Daily Rate = (Hourly Rate × Hours/Week × 52) ÷ 260 - Salary:
Daily Rate = Annual Salary ÷ 260 - Self-Employed:
Daily Rate = (Monthly Income × 12) ÷ 260
Past Lost Wages (Gross)
Gross Lost Wages = Daily Rate × (Days Missed + PTO Days Used)
Lost Benefits
Lost Benefits = Monthly Benefits Value × (Days Missed ÷ 21.67)
Net Past Loss
Net Past Loss = (Gross Lost Wages × (1 − Tax Rate)) + Lost Benefits − Mitigation Earnings
Present Value of Future Earnings Loss (Growing Annuity)
When discount rate (d) ≠ wage growth rate (g):
PV = AnnualLoss × [(1+g) ÷ (d−g)] × [1 − ((1+g) ÷ (1+d))^N]
When d ≈ g: PV = AnnualLoss × N
Then: PV (after tax) = PV × (1 − Tax Rate)
Grand Total
Total = Net Past Loss + PV of Future Earnings Loss
Assumptions & References
- A standard work year of 260 workdays (52 weeks × 5 days) and 21.67 workdays per month are used.
- Future earnings loss is modeled as a growing annuity discounted to present value, consistent with forensic economic methodology.
- Wage growth rates of 2–4% reflect historical U.S. Bureau of Labor Statistics Employment Cost Index trends.
- Discount rates of 3–5% are commonly used by forensic economists, often based on U.S. Treasury yields.
- Tax adjustments reflect that lost wages replace taxable income; some jurisdictions award gross amounts — consult an attorney.
- Mitigation of damages is a legal duty in most U.S. jurisdictions; any income earned during the loss period is deducted.
- PTO/sick days forced to be used due to injury are compensable in many jurisdictions as they represent a loss of a valuable employment benefit.
- This calculator provides an estimate only and does not constitute legal or financial advice. Formal lost-earnings analyses for litigation should be performed by a certified forensic economist.
- References: Brookshire & Smith, Economic/Hedonic Damages; U.S. BLS Occupational Employment Statistics; IRS Publication 525 (taxable income).