Accident Cost Estimate Calculator

Work out accident cost estimate instantly with clear inputs, formula shown and shareable results.

About Accident Cost Estimate Calculator

Direct costs, medical treatment and insured compensation, are the visible part of an accident. Indirect costs, investigation time, retraining, supervision, equipment damage, reputational and legal effort, typically run three to five times higher and are almost entirely uninsured. Lost production is added separately because it depends on the process rather than on the injury.

Formula

Total accident cost

Total = direct cost x (1 + indirect ratio) + production hours lost x hourly value

Worked example

With the default values below, Accident Cost Estimate Calculator returns Total cost of the accident of $1,450,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Direct costsminimum 0: 250,000
Indirect to direct cost ratiominimum 0.1: 4
Production hours lostminimum 0 h: 40 h
Value of an hour of productionminimum 0: 5,000

Results

Total cost of the accident: $1,450,000.00
Indirect costs: $1,000,000.00
Lost production value: $200,000.00
Total cost as a multiple of direct cost: 5.80

Step by step

1Values used
2Total accident cost
3Total cost of the accident= 1,450,000.00
4Indirect costs= 1,000,000.00
5Lost production value= 200,000.00
6Total cost as a multiple of direct cost= 5.80

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Accident Cost Estimate figure worked out?

Total = direct cost x (1 + indirect ratio) + production hours lost x hourly value. Direct costs, medical treatment and insured compensation, are the visible part of an accident.

Why is the indirect multiplier so large?

Because the hidden costs are diffuse: dozens of people spend time on investigation, reporting, cover arrangements and corrective action, and none of it appears on an insurance claim.

What values do I need to enter?

This calculator takes 4 inputs: Direct costs, Indirect to direct cost ratio, Production hours lost, Value of an hour of production. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.