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Interactive guide · Legal & Injury

How to Calculate Lost Wages

Work out past and future income loss, including benefits and reduced capacity.

Open as a plain tool
The formula

How this number is built

past = (weekly pay + overtime) × weeks missed × (1 + benefits) · future = discounted capacity loss
Step by step

Calculating it yourself

Step 1

Convert your pay to a weekly figure so every input is on the same clock.

Step 2

Count only time you were medically cleared to be off work.

Step 3

Add average overtime you would have worked — payroll history proves it.

Step 4

Include employer-paid benefits; they are part of what you lost.

Step 5

If your earning capacity is permanently reduced, discount the future stream to present value.

Questions

What people ask next

Gross or net wages?

Claims are normally presented in gross. Tax treatment of the settlement is a separate question.

What if I am self-employed?

Use net business income from prior tax returns and show the drop in invoices for the same period.

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Local rules

Where this applies