Updated June 17, 2026
Add the non-economic side next
Lost wages are one piece; the pain and suffering calculator covers the rest.
Lost wages are calculated by multiplying your gross daily or hourly earnings by the number of days you were unable to work, plus any reduction in hours or pay due to medical restrictions. For a W-2 employee earning $60,000 a year who missed 30 days: $60,000 divided by 260 working days = $230.77 per day, times 30 days = $6,923 in lost wages.
Formula for hourly employees
Hourly rate times hours missed equals lost wages. At $22 an hour over 3 missed weeks of 40-hour schedules: $22 times 120 hours = $2,640. If your pay stubs show a consistent pattern of overtime, include it. The documentation needs to show the pattern, not just the claim.
Formula for salaried employees
Annual salary divided by 52 weeks, times weeks missed, equals lost wages. Alternatively: annual salary divided by 260 working days, times days missed. Either formula works; use one and stick to it. Your employer should provide a letter confirming your salary, normal hours, and your specific absence dates.
Self-employed claimants
Self-employed claimants document income loss with their last one to two years of tax returns, typically Schedule C or business returns, to establish average earnings. Calculate average weekly or daily net income, then multiply by days missed. Specific contracts or jobs canceled because of the injury are the most persuasive evidence, because they attach a real dollar figure to a real lost opportunity.
Benefits and fringe: what to include
Lost wages in most claims means gross wages, not net take-home pay. Some attorneys also add the value of employer benefits that lapsed during the absence: health insurance premiums, retirement contributions, accrued leave consumed. If you lost coverage while you were out, document the cost and add it. Keep each component separate with its own supporting figure.
Lost earning capacity: the longer-term loss
If the injury permanently limits the kind or amount of work you can do, you may have a lost earning capacity claim on top of your wage loss claim. The two are separate. A vocational rehabilitation expert reviews your pre-injury earnings history and your post-injury limitations to project the lifetime income gap. The claim is most substantial in spinal cord, TBI, and other permanently disabling cases, where the projection can run into the millions. See how settlements are calculated for where this fits.
Add the non-economic side next
Lost wages are one piece; the pain and suffering calculator covers the rest.