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Loss of Earnings Calculator

Loss of earnings is typically the single largest component of a personal injury claim, often outweighing the general damages bracket figure by a substantial margin. This calculator estimates both past loss (earnings missed while you have been unable to work) and future loss (the projected difference between your previous earnings and what you can reasonably achieve in the future, given the injury).

In this guide

Unlike general damages calculators that use the Judicial College Guidelines, loss of earnings calculation is pure arithmetic — but the arithmetic has subtleties. Past loss uses net (take-home) earnings, deducts any sick pay actually received, and accounts for pension contributions. Future loss uses the Ogden Tables — official multiplier tables published by the Government Actuary’s Department — to convert annual earnings losses into a lump sum, accounting for life expectancy, expected retirement age, and the current discount rate.

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Loss of earnings calculator

Work out the earnings element of your claim.

How This Calculator Works

Enter your previous weekly take-home earnings (after tax, NI, and pension), the number of weeks you have been unable to work, and any sick pay received during that period. For future loss, enter your expected retirement age and the proportion of your previous earnings you can reasonably achieve in alternative work. The calculator applies the appropriate Ogden multiplier and produces a total past + future loss figure.

Past Loss of Earnings

Past loss covers the period from the date of the accident to the date the loss is calculated (usually the settlement date). The calculation is:

  • Weekly net earnings before the accident (take-home, not gross)
  • Multiplied by the number of weeks unable to work
  • Minus any sick pay actually received (Statutory Sick Pay or contractual sick pay)
  • Plus any pension contributions you would have made (the employer’s contribution is also recoverable)
  • Plus any other benefits in kind (company car, healthcare, etc.) you have lost

Future Loss of Earnings — The Ogden Tables

Future loss is more complex because we are projecting decades into the future. The Ogden Tables (officially “Actuarial Tables for use in Personal Injury and Fatal Accident Cases”, currently 8th edition) provide multipliers that convert annual losses into a lump sum, accounting for:

  • Life expectancy at the claimant’s age and gender
  • Expected retirement age (typically 65-68 depending on occupation)
  • The discount rate set by the Lord Chancellor — currently a negative rate of -0.25 per cent in England and Wales
  • Risk of leaving the workforce for non-injury reasons (the “discount for contingencies”)
  • Whether the claimant is in employment, education, or out of work at the time of injury

A 35-year-old earning £40,000 net annually with no prospect of returning to work might have a future loss figure of £1.2-1.5 million depending on multipliers. The discount rate has a huge effect — small changes in the rate produce hundreds of thousands of pounds in difference. The current negative rate reflects the post-2017 reform that recognised real-terms investment returns rarely exceed inflation.

Self-Employed and Variable Earners

For self-employed claimants, the calculation uses average earnings from the most recent two or three years (typically from accounts or tax returns). Where earnings were rising or falling, the calculator may need adjustment. Lost contract opportunities, lost client relationships, and the cost of replacement labour to maintain the business while you recover are all recoverable in addition to lost personal earnings.

Commission-based, seasonal, and irregular earners need careful evidence of typical earnings patterns. Specialist solicitors arrange forensic accountant input for complex cases.

What This Calculator Doesn’t Capture

Loss of earnings calculations have several factors that calculators cannot fully model: lost promotion or career progression (where the injury prevented advancement that was reasonably likely), lost training and qualifications, lost pension growth (the compound effect over decades is substantial), and the “Smith v Manchester” award — additional compensation for the disadvantage in the labour market caused by the injury, even where you can still work. Specialist solicitors quantify these elements precisely.

Next Steps

Loss of earnings is a technical area where the difference between a non-specialist and a specialist calculation can be very substantial. Specialist personal injury solicitors arrange forensic accountant evidence for complex cases and use the current Ogden Tables and discount rate as a matter of course. No win no fee Conditional Fee Agreements are standard.

Common Questions

Should I use gross or net earnings?

Net (take-home) earnings. The compensation principle is to restore you to the position you would have been in but for the injury — so the figure is what you would actually have received after tax and National Insurance. Pension contributions are usually added back in separately (because you would have received the pension benefit eventually) and any employer pension contribution is also recoverable.

I received sick pay — does that reduce my claim?

Yes — contractual sick pay actually paid is deducted from the loss-of-earnings figure to avoid double recovery. Statutory Sick Pay (SSP) is also deducted under specific rules in the Social Security (Recovery of Benefits) Act 1997, with the deducted amount paid to the Compensation Recovery Unit (CRU) rather than to you. The net figure remaining is what you receive in your claim.

What if I can return to work but at a lower-paid job?

The future loss claim covers the difference between your previous earnings and what you can reasonably achieve. For example, a £50,000-per-year construction site manager who can now only do £25,000-per-year office work has a future loss of £25,000 per year multiplied by the Ogden multiplier for their age. Over decades, this typically runs into hundreds of thousands of pounds. The specific replacement role doesn’t have to be one you actually take — it just has to be one you reasonably could.

What is the Ogden discount rate?

The Ogden discount rate is the assumed real-terms investment return on the lump sum awarded for future losses. A higher discount rate produces a lower multiplier (less compensation); a lower discount rate produces a higher multiplier. The Lord Chancellor sets the rate, currently at -0.25 per cent for England and Wales (negative, reflecting that real-terms returns are typically slightly negative after risk and costs). The next review is expected in coming years.

What is a Smith v Manchester award?

Where you can return to work but the injury has reduced your competitiveness in the labour market (you would have difficulty finding a new job if you lost your current one), a Smith v Manchester award provides additional lump sum compensation for this disadvantage. Typical awards are between 6 months and 2 years’ worth of earnings, depending on severity. The calculator may not capture this — specialist solicitors include it where appropriate.

How accurate is this calculator?

The calculator gives a directional estimate based on standard UK methodology. Actual outcomes vary based on the specific facts of your case, the strength of evidence, and the negotiating position of the insurer. Treat the figure as a starting point — a specialist solicitor will give you a more precise figure after reviewing your evidence.

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Gavin Cooper

Gavin Cooper

Claims Expert, Claims Bible

Gavin writes and reviews Claims Bible's guidance on compensation claims. Claims Bible is a trading style of Forces Compare Ltd, authorised and regulated by the FCA for claims management activities (FRN 785329).

Updated 24 July 2026 · Part of our Personal Injury guide

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