Work out loss of earnings claim instantly with clear inputs, formula shown and shareable results.
Loss of earnings splits into past loss, which is a matter of arithmetic on payslips, and future loss, calculated as the annual shortfall in earning capacity multiplied by an actuarial multiplier reflecting the remaining working life and discounted for early receipt.
Past loss
Past loss = Annual net earnings / 12 x Months absent
Future loss
Future loss = Annual net earnings x (1 - Residual capacity %) x Multiplier
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
From actuarial tables such as the Ogden tables, which combine remaining working life, mortality and a prescribed discount rate.
Net, because the claimant is compensated for what they would actually have received. Pension loss is usually claimed separately.