How This Calculator Works

Personal injury valuations typically fall into two buckets: Economic Damages (things with receipts) and Non-Economic Damages (pain and suffering). This tool uses the standard formula used by insurance adjusters and attorneys to estimate both.

1. Economic Damages (“Specials”)

These are your objective financial losses. They are the easiest to prove because they are backed by paperwork. In the calculator, you will enter:

• Medical Expenses: This is the total cost of your treatment to date. Crucial Note: Enter the billed amount, not just your co-pays. Even if health insurance paid the bill, the full value of the medical service is usually the basis for the settlement.
• Property Damage: The cost to repair your vehicle or the fair market value if it was totaled. It also includes broken glasses, phones, or other personal items.
• Lost Income: The exact amount of wages you lost while recovering. This includes sick days or vacation time you were forced to use.
• Future Losses: If your doctor says you need future surgery or if you can no longer work the same job, these estimates go into the “Future” fields.

2. Non-Economic Damages (“Generals”)

This is the gray area where negotiation happens. “Pain and suffering” doesn’t have a price tag. To calculate this, the industry uses a Multiplier.

We take your “Medical Expenses” (and sometimes lost income) and multiply them by a number between 1.5 and 5.0.

How to Choose the Right Multiplier on the Slider

The calculator defaults to 1.5. Be realistic when adjusting the slider:

• 1.5 to 2.5 (Minor to Moderate): Use this for soft tissue injuries (whiplash, sprains, bruising) where you recovered fully within a few months with conservative treatment (chiropractor, physical therapy).
• 3.0 to 4.0 (Serious): Use this for broken bones, injuries requiring surgery, or accidents that have resulted in long-term restrictions on your daily life.
• 4.5 to 5.0 (Severe/Permanent): This range is reserved for catastrophic injuries, permanent scarring, disfigurement, brain injuries, or permanent disability.

3. Attorney Fees & Net Payout

Most online calculators stop at the “Gross Settlement.” That is misleading because it’s not the money you put in the bank.

Most personal injury lawyers work on a contingency fee basis. They don’t get paid unless you win. Their fee is typically a percentage of the final settlement.

• 33.3% (1/3): The standard fee if the case settles before filing a lawsuit.
• 40%: The standard fee if the lawyer has to file a lawsuit or go to trial.

Factors That Can Lower Your Settlement

This calculator provides an estimate based on the “perfect world” scenario where the other driver is 100% at fault and has enough insurance. However, in the real world, several factors can reduce this number.

Comparative Negligence (Partial Fault)

If you were partially to blame for the accident, your settlement will be reduced by your percentage of fault.

• Example: If your damages are $100,000, but you were 20% at fault for speeding, your settlement drops to $80,000.

Policy Limits

You cannot get blood from a stone. If your claim is worth $100,000, but the at-fault driver only carries the state minimum insurance (e.g., $25,000), the insurance company will only write a check for $25,000. You would need to file a claim against your own Underinsured Motorist (UIM) coverage to get the difference.

Pre-Existing Conditions

If you had a bad back before the accident, the insurance adjuster will argue that the accident only aggregated the injury, rather than caused it. They will try to lower the multiplier based on your medical history.

FAQs

Q1. Why shouldn’t I just accept the first offer from insurance?

A: Insurance adjusters are trained to save the company money. Their first offer is almost always a “lowball” designed to see if you are desperate for quick cash. It rarely accounts for future medical needs or the full extent of your pain and suffering.

Q2. Does this calculator include medical liens?

A: No. The “Net Payout” shown here deducts attorney fees, but it does not deduct medical liens. If your health insurance or Medicare paid your bills, they are entitled to be reimbursed from your settlement. You will need to pay those liens out of the net amount.

Q3. Is a settlement taxable?

A: Generally, no. The IRS typically considers compensation for physical injuries and physical sickness as non-taxable. However, punitive damages or interest earned on the settlement may be taxable. (Always consult a tax professional).

Q4. Why do I need a lawyer if I can calculate this myself?

A: This calculator gives you a target, but it doesn’t fight for you. A lawyer’s job is to find the evidence that justifies using a 4.0 multiplier instead of a 1.5. They locate extra insurance coverage, negotiate down your medical liens (putting more money in your pocket), and threaten litigation if the insurer refuses to pay fair value.

Sources: Lehm Law, Feher Law Firm, Gunter Injury Law, Knutson + Casey, AllLaw (Nolo), Blair & Ramirez LLP, Rob Levine & Associates, Shook & Stone, Mehta & McConnell, Brauns Law.

Related Calculators:

• Case Connect Compensation Calculator.