Lost wages calculator

Estimates only. Future lost earning capacity requires an economic expert for accurate litigation figures. This tool provides a planning estimate. Always consult a personal injury attorney for serious wage loss claims. See our full disclaimer.

Lost wages and earning capacity calculator

Employment type

Days missed from work so far

Current and future work capacity

Estimated reduction in earning capacity (%)

Your current age Future earning capacity loss is calculated from your current age to standard retirement age (67). Younger victims have larger future losses.

Your lost wages estimate

Get an accurate wage loss assessment

For significant wage loss claims, an economic expert retained by your attorney produces a formal calculation that withstands insurer scrutiny. Free case review - no obligation.

What lost wages can you claim in a personal injury lawsuit?

You can claim 2 categories of wage loss: past lost wages (income already missed since the injury) and future lost earning capacity (the income you'll miss from now until retirement). Most injury victims only think about past wages - missing the much larger future component entirely.

A 35-year-old earning $60,000/year who can no longer work has 32 years to retirement at age 67. Even without growth, that's $1.92 million in lost future earnings - which an economist discounts to present value of approximately $1.2 to $1.4 million. That single number often dwarfs everything else in the damages package.

What documentation do you need to prove lost wages?

For employees: W-2s, recent pay stubs, and a letter from your employer confirming dates missed and your regular pay rate. For self-employed individuals: 2 to 3 years of tax returns (Schedule C), bank statements, and documentation of cancelled contracts or lost clients. For gig workers: platform earnings reports, bank statements, and mileage logs. The IRS records your income history - if you've reported income, it can be proven.

What if you worked for cash or under-reported income?

Unreported income is very difficult to claim in litigation. Courts and insurers require documented proof of income. If you worked for cash, bank deposit patterns, client invoices, and business expense records can help establish income even without W-2s. This is a situation where working with an experienced attorney is especially important - claiming unreported income in litigation has legal complications beyond just the civil case.

Can you claim lost wages for a stay-at-home parent?

Yes - using the replacement services method. A stay-at-home parent who can no longer perform household services, childcare, and home management functions has a documented economic loss. Economists calculate the cost of replacing those services at market rates (professional childcare, housekeeping, cooking, transportation). This figure is fully recoverable and is often surprisingly large - professional childcare alone averages $15,000 to $30,000 per year in most US cities.

Frequently asked questions about lost wages in injury claims

Yes. Using sick days or PTO that you earned doesn't eliminate your lost wage claim. You used a benefit you were entitled to as part of your compensation - the at-fault party shouldn't get credit for it. This is the collateral source rule: benefits you receive from a source independent of the defendant don't reduce your recovery. Document the days you used and the monetary value of those benefits and include them in your claim.

Future earning capacity requires a vocational expert and an economist working together. The vocational expert evaluates your pre-injury occupation, skills, and earning trajectory, then assesses what work (if any) you're capable of post-injury. The economist takes that analysis and calculates the present value of the difference between what you would have earned and what you can now earn over your remaining working life. For serious injuries, this expert combination is standard in litigation and the cost is fronted by your attorney.

Generally, the portion of a personal injury settlement attributable to lost wages is taxable as ordinary income, while the portion attributable to physical injuries, medical expenses, and pain and suffering is not taxable under IRC Section 104. Your settlement agreement's allocation between these categories matters for tax purposes. Consult a tax professional before finalizing any significant settlement - the way the settlement is structured and documented can have substantial tax implications.

An employer's opinion about your work capacity doesn't control your legal claim. Your treating physician's work restrictions are the medical foundation, and a vocational expert retained by your attorney provides the vocational analysis. If you physically cannot perform the material functions of your prior job and are forced into lower-paying work, that earning differential is a recoverable loss. Employer pressure to return before you're medically cleared is a separate issue worth documenting.

Workers compensation replaces a portion of your wages (typically 2/3) but doesn't cover the full amount or include future earning capacity for most injuries. If a third party caused or contributed to your workplace injury - a negligent contractor, defective equipment, a vehicle driver - you can file a third-party lawsuit that includes full lost wages and earning capacity alongside workers comp. The workers comp insurer will have a lien on your lawsuit recovery for benefits paid, but the total combination usually far exceeds workers comp alone.