Free injury income loss estimate
Lost Wages Calculator
Estimate missed pay, used PTO, self-employed income, and future earning loss.
Settlement Calculator Pro’s lost wages calculator estimates income loss for a personal injury claim using hourly pay, salary, missed workdays, PTO or sick time, overtime, commissions, benefits, self-employed profit loss, and future lost earning capacity.
- Hourly, weekly, monthly, and salary support
- Lost wages calculator with PTO
- Self-employed income loss
- Future earning capacity estimate
Estimate your lost wages
Enter gross pay and documented missed work. Leave optional fields blank if they do not apply.
Estimated lost wage claim
Enter your details
Your estimate will appear here after you calculate. The range is rounded to avoid false precision.
Income loss factors
What affects a lost wages personal injury claim?
Lost wages personal injury value depends on your normal pay, missed work period, medical restrictions, PTO used, overtime history, commissions, self-employed profit records, lost benefits, and whether your future earning capacity changed.
Base wage rate
Hourly rate, weekly gross pay, salary, commissions, and average hours worked help establish the starting point for wage loss.
Medical work restrictions
Doctor notes, disability slips, surgery records, therapy records, and return-to-work limits connect the injury to missed time.
PTO or sick days
Using paid leave can still be an economic loss because those paid days were consumed by the injury instead of remaining available later.
Variable income
Overtime, bonuses, commissions, tips, shift differentials, and seasonal work require a documented earning history.
Self-employed proof
Invoices, appointment books, bank deposits, tax returns, contracts, and profit-and-loss records can support self-employed lost income.
Future earning capacity
Permanent restrictions, reduced hours, job changes, missed promotions, or disability may support a future lost earnings claim.
How do I calculate lost wages for a personal injury claim?
Lost wages are usually calculated by multiplying your normal gross rate of pay by the work time you missed because of the injury, then adding documented lost overtime, commissions, tips, bonuses, benefits, PTO used, and self-employed profit loss. If the injury reduces your ability to earn in the future, the claim may also include future lost earning capacity.
For hourly employees, the basic formula is hourly rate multiplied by missed hours. For salaried employees, convert gross salary into a daily or hourly rate using normal work hours. For self-employed people, insurers usually look for net profit loss, not just missed gross revenue.
What is included in a lost income calculator for injury claims?
A complete lost income calculator injury estimate should separate past lost wages from future earning loss. Past lost wages are tied to already-missed work. Future lost earning capacity is tied to reduced ability to earn after settlement because of permanent restrictions, disability, job change, reduced hours, or missed career advancement.
| Income loss type | How it is usually calculated | Useful proof |
|---|---|---|
| Hourly lost wages | Hourly rate x missed work hours | Pay stubs, schedule, time records, doctor restrictions. |
| Salary lost wages | Gross salary converted to daily or hourly rate x missed time | Employer letter, W-2, payroll records, missed-work dates. |
| PTO or sick days used | Value of paid leave used because of the injury | PTO ledger, employer confirmation, leave balance history. |
| Overtime, bonus, or commission loss | Documented average or specific lost opportunity | Commission reports, bonus plan, prior overtime history. |
| Self-employed lost income | Lost net profit, canceled jobs, or reduced business earnings | Tax returns, invoices, bank records, profit-and-loss statements. |
| Future lost earning capacity | Expected monthly or annual reduction over a supported period | Medical restrictions, vocational report, wage history, BLS wage data. |
Sources used for context: U.S. Department of Labor regular rate guidance, BLS May 2024 wage data, BLS QCEW annual wage data, and IRS settlement tax guidance.
If lost wages are only one part of your claim, compare this result with the personal injury settlement calculator after you calculate medical bills and pain and suffering.
How to prove lost wages in personal injury
Insurers usually want records that prove both sides of the claim: what you normally earned and why the injury caused the missed work. A doctor note saying you should not work is stronger when paired with payroll records showing the exact dates and pay that were missed.
- Recent pay stubs, W-2 forms, 1099 forms, payroll history, or employer wage verification.
- Doctor work restrictions, disability slips, surgery records, physical therapy notes, or return-to-work letters.
- Work schedule, missed-work calendar, time records, PTO ledger, and sick leave balance.
- Commission reports, bonus plan, tip history, overtime history, or shift differential proof.
- For self-employed claims: tax returns, invoices, customer cancellations, bank deposits, contracts, and profit-and-loss statements.
Can I claim lost wages if I used sick days or PTO?
Yes, in many personal injury claims you can include the value of sick days, vacation days, or PTO used because of the injury. Even though the employer paid you, the injury forced you to spend a benefit that had economic value and would otherwise have remained available.
The best proof is an employer record showing the dates used, the number of hours or days deducted, your pay rate, and your PTO balance before and after the injury absence.
Can self-employed people claim lost wages?
Self-employed people can claim lost income, but the calculation is usually based on lost net profit, canceled work, reduced billings, or replacement labor costs rather than gross revenue alone. A self-employed claimant may need more documentation because there is no employer payroll record.
Useful proof includes prior-year tax returns, year-to-date income, invoices, contracts, appointment books, bank deposits, business expense records, customer cancellation messages, and a short explanation connecting the injury to the lost work.
What is future lost earning capacity?
Future lost earning capacity is the expected reduction in your ability to earn money after the claim because of lasting injury restrictions. It is different from past lost wages because it looks forward instead of backward. Examples include reduced hours, inability to return to a prior job, lower-paying work, missed promotion path, or permanent disability.
Future lost earning capacity is often harder to prove than past lost wages. Larger claims may require medical opinions, vocational evaluation, work-life expectancy analysis, and wage data from sources such as the Bureau of Labor Statistics.
Are lost wages in a settlement taxable?
IRS guidance says compensatory damages, including lost wages, received on account of a personal physical injury are generally excluded from gross income. Lost wages for non-physical injury claims, employment claims, discrimination claims, severance, or back pay may be taxable. The key question is what the settlement payment is intended to replace.
Because tax treatment depends on the facts and allocation language, use our settlement tax calculator and ask a tax professional before finalizing a large settlement.
How to use this lost wages calculator
Disclaimer
This lost wages calculator provides educational estimates only. It is not legal, financial, tax, accounting, or employment advice. Wage loss rules, proof requirements, offsets, collateral source rules, disability benefits, tax treatment, and future earning capacity claims vary by jurisdiction and case facts.
Lost wages FAQ
Common questions about lost wages in injury claims
Direct answers about calculating lost wages, PTO, proof, self-employed income, future earning capacity, and tax treatment.
Calculate lost wages by multiplying your gross pay rate by the work time missed because of the injury, then add documented overtime, commissions, tips, bonuses, benefits, PTO used, and self-employed profit loss. Future earning loss is separate and should be supported by medical or vocational evidence.
Yes. If an injury forced you to use sick days, vacation time, or PTO, the value of those used benefits may be included in a wage loss claim. Ask your employer for a record showing the dates used, hours deducted, pay rate, and remaining leave balance.
Use pay stubs, W-2s, 1099s, employer wage verification, schedules, time records, PTO records, tax returns, and a doctor note showing work restrictions. The strongest proof connects the injury, medical restriction, missed dates, and exact amount of income lost.
Yes. Self-employed people can claim lost income, but they usually need to prove lost net profit or reduced business earnings. Useful evidence includes tax returns, invoices, bank deposits, profit-and-loss statements, contracts, customer cancellations, and records showing the injury caused the lost work.
Future lost earning capacity is the expected reduction in your ability to earn money after settlement because of lasting injury restrictions. It may involve reduced hours, lower-paying work, inability to return to a trade, missed promotion path, or permanent disability.
Lost wages received because of a personal physical injury are generally tax-free under IRS guidance. Lost wages from non-physical injury claims, employment claims, back pay, severance, or discrimination claims may be taxable. The tax answer depends on what the settlement payment replaces.
Add lost wages to the full settlement estimate.
After you calculate income loss, combine it with medical expenses, pain and suffering, fault, and limits inside the full personal injury calculator.