π§Ύ Lost Wages Calculator
Document income lost to injury, illness, or disruption.
Total lost wages
Estimates for planning only, not financial advice.
Lost wages are the income you did not earn because injury, illness, or disruption kept you from work. The math is hourly rate times hours per day times days missed, plus overtime at time and a half. At $28 an hour over 21 eight-hour days with 10 overtime hours lost, the total is $5,124: $4,704 in regular wages plus $420 in overtime. This calculator documents that figure from your rate, schedule, and time missed.
Precision matters because lost wages are claimed, not assumed. Insurance adjusters and courts want the arithmetic shown, backed by pay stubs and an employer letter. A clean calculation with documentation settles faster and for more than a round-number guess.
How to Use This Calculator
Enter your hourly rate, usual hours per workday, workdays missed, and overtime hours lost. The calculator separates regular and overtime losses and shows your daily wage and total hours missed.
Enter your gross hourly rate. Salaried workers: divide annual salary by 2,080.
Enter hours per workday, workdays missed, and any overtime hours you would normally have worked.
Read the total and gather proof: pay stubs and an employer letter. For the bigger financial picture during recovery, our emergency fund calculator sizes the safety net.
The Formula
Overtime at 1.5 times the rate follows the Fair Labor Standards Act structure most hourly workers are paid under. Only count overtime you actually worked regularly; a claim for overtime you never worked invites skepticism. Salaried workers outside overtime rules still count the straight-time value of missed days.
What to Include Beyond Base Pay
| Component | How to value it | Proof needed |
|---|---|---|
| Base wages | Rate x hours missed | Pay stubs, employer letter |
| Overtime | 1.5x rate x OT hours | History of OT on stubs |
| Bonuses, commissions | Prorated average | Prior payouts |
| Benefits lost | Employer 401(k) match, premiums | Benefits statement |
| Used PTO | Daily rate x days | Leave records |
The benefits row is the one most people forget. An employer 401(k) match of 4 percent on $5,124 of lost wages is another $205 of economic loss, and health premiums the employer paid during leave count too. For ongoing income protection, our paycheck calculator shows what each missed check was worth after tax.
Worked Example
With the defaults: $28 an hour, 8-hour days, 21 days missed. Regular lost wages are 28 x 8 x 21 = $4,704. Overtime lost is 28 x 1.5 x 10 = $420. The total is $5,124 across 178 hours of missed work, at a daily wage of $224. A salaried worker earning $75,000 has an hourly equivalent of 75,000 / 2,080 = $36.06, so the same 21 days would be worth $6,058 before overtime.
Documenting the Claim
Get the employer letter first: rate, schedule, dates missed, and overtime pattern on company letterhead. Pull pay stubs from the three months before and the period after. Keep medical records that tie the absence dates to the injury. For the self-employed, assemble two years of tax returns and a current profit-and-loss, and be ready to explain seasonality.
My rule: claim everything real, document everything claimed, and round nothing. Adjusters discount sloppy claims and respect precise ones. The calculator gives you the arithmetic; the paperwork gives you the money.
What Counts as Lost Wages
Lost wages go beyond the hourly rate times missed hours. Overtime you regularly worked counts, and courts accept pay stubs showing the pattern. Missed bonuses, commissions, and tips count if you can document the history. Self-employed workers claim lost income too, using tax returns and invoices, though the fight is harder because income is lumpier. Future lost earning capacity, the difference between what you would have earned and what you can earn now, is often the largest component in serious injury cases.
Documentation wins these claims. Keep every pay stub, a calendar of missed days, doctor's notes tying each absence to the injury, and any correspondence about lost promotions or overtime. Gaps in treatment or undocumented absences are what defense attorneys attack. File promptly: statutes of limitations for injury claims run one to three years depending on the state, and waiting never helps. For the tax treatment of any settlement, our income tax calculator estimates the bite.
State Programs That Help
Beyond lawsuits, several programs replace lost wages. State disability insurance, available in a handful of states, pays a portion of wages during non-work injuries. Workers' compensation covers job-related injuries regardless of fault. Paid family leave programs in a growing list of states cover caregiving and bonding.
Apply for everything you might qualify for immediately; benefits are rarely retroactive beyond the application date. Keep copies of every filing, because agencies lose paperwork with impressive regularity. These programs have waiting periods and caps, so treat them as a bridge, not a replacement, and layer them with any legal claim.
Estimates for planning only, not financial advice.Frequently Asked Questions
How do you calculate lost wages?
Multiply your hourly rate by hours per day by days missed, then add lost overtime at 1.5 times the rate. At $28 an hour, 8-hour days, 21 days missed, regular lost wages are $4,704, plus 10 overtime hours at $42 is $420, for $5,124 total. Salaried workers divide annual salary by 2,080 hours for the hourly equivalent.
What counts as lost wages in a claim?
Regular pay, overtime, commissions, bonuses, and the value of lost benefits like employer 401(k) matches and health premiums. Self-employed people use net profit history. Future lost earning capacity counts too when injuries are permanent, usually requiring expert testimony.
How do salaried employees calculate lost wages?
Divide gross annual salary by 2,080 working hours (40 hours x 52 weeks) for an hourly rate, then multiply by hours missed. A $75,000 salary is $36.06 an hour. Alternatively divide by 260 workdays for a daily rate of $288.46. Use gross pay, not take-home, since taxes are a separate matter.
Can self-employed people claim lost wages?
Yes, using net business income rather than gross revenue. Tax returns, profit and loss statements, and invoices from before and after the disruption establish the baseline. Courts look for a clear earnings history, so newer businesses with thin records face more scrutiny.
Do lost wages include overtime?
Yes, if you regularly worked it. Document the pattern with pay stubs showing typical overtime hours. Occasional overtime is harder to claim than a steady 10 hours a week. The calculator applies the standard 1.5 times rate to overtime hours lost.
Are lost wages taxable?
Generally yes. Settlements replacing taxable wages are taxable as ordinary income, and payers may need to withhold. The tax treatment of personal injury settlements has nuances, with compensatory damages for physical injuries often excluded, so confirm with a tax professional rather than assuming.
What documentation proves lost wages?
An employer letter stating your rate, schedule, and dates missed, plus pay stubs before and after, is the gold standard. Medical records tying the absence to the injury connect the claim. For the self-employed, two to three years of tax returns plus current-year books make the case.
What is loss of earning capacity versus lost wages?
Lost wages cover income already missed. Loss of earning capacity covers the future: reduced ability to earn from lasting injury, calculated as the difference between pre- and post-injury earning trajectories over a work life, often with economist testimony and present-value discounting.
Can I claim lost wages for a partial day or reduced hours?
Yes. Log the exact hours missed or the reduced schedule and multiply by your rate. Partial disability that cuts you from 40 to 25 hours a week for three months is 15 hours a week times 13 weeks times your rate, documented by timesheets.
Should PTO used during recovery count?
Yes, and claim it. Sick days and vacation time spent recovering have real value: you lost both the wages and the time off. Value PTO at your daily rate and list it separately so the claim shows the full economic loss.