Lost Wages Calculator - Calculate Your Lost Income

Calculate income lost due to injury or illness.

Total Lost Wages

$0.00

How to Use This Lost Wages Calculator

  1. Enter your daily wage — Input your gross daily earnings (before taxes). Salaried employees can divide annual salary by 260 workdays.
  2. Enter days missed — Input the total number of workdays you missed due to your injury or illness, including medical appointment days.
  3. Click Calculate — See your total lost wages calculated as Daily Wage x Days Missed.

Understanding Your Lost Wages Estimate

Lost wages are a key component of economic damages in personal injury and workers comp claims. Here is what to know:

  • Documentation required: Insurance companies require proof of lost wages including pay stubs, employer verification letters, and tax returns. Self-employed individuals need tax records and profit/loss statements.
  • Lost earning capacity: If your injury permanently reduces your ability to earn income, you may claim lost earning capacity in addition to immediate lost wages.
  • PTO and sick leave: Even if you used paid time off, you can still claim those lost wages. Your employer may need to confirm you used PTO due to the injury.
  • Future lost wages: If your recovery extends beyond the current date, estimate future missed workdays and include them in your claim.

Frequently Asked Questions

How are lost wages calculated for hourly vs. salaried workers?

For hourly workers, multiply your hourly rate by the number of hours missed. Include overtime if you regularly worked OT. For salaried workers, divide your annual salary by 260 (workdays per year) to get your daily rate, then multiply by days missed. Commission-based workers should use their average daily earnings over the past 6-12 months.

Can I claim lost wages if I'm self-employed?

Yes. Self-employed individuals can claim lost wages based on their average daily or weekly income. Use tax returns, profit and loss statements, bank records, and invoices to document your income. For newer businesses without extensive tax history, projected earnings based on industry benchmarks may be accepted.

Are lost wages taxable when received in a settlement?

Yes. Lost wages received as part of a settlement are generally taxable as ordinary income because they represent compensation for income you would have earned. The IRS treats lost wages the same as regular employment income. Your attorney can help structure the settlement allocation to minimize tax impact.

What if my employer fires me because I can't return to work?

If you lose your job due to an inability to return after an injury, you may be entitled to additional compensation for lost earning capacity. This is calculated by comparing your earning potential before and after the injury. An economist or vocational expert may be needed to quantify these long-term losses.

Pro Tip: Documenting Lost Wages

Start a work journal immediately. Record each day you miss, the hours you would have worked, and any specific tasks or projects you missed. Ask your employer for a signed letter confirming your job title, wage rate, hours missed, and any lost bonuses or commissions. For self-employed individuals, gather 2-3 years of tax returns, client invoices, and a written statement from a CPA estimating your daily earnings.