Personal Injury Settlement Calculator
Estimate the potential value of your injury claim based on economic and non-economic damages.
Disclaimer: This calculation is an estimate for educational purposes only. It does not constitute legal advice. Actual settlements depend on insurance limits, shared fault, and legal representation.
How Personal Injury Settlements Are Calculated
Calculating the value of a personal injury claim involves two primary types of damages: Economic Damages and Non-Economic Damages. Understanding these categories is the first step toward negotiating a fair settlement with an insurance company.
1. Economic Damages (Special Damages)
These are the objective, out-of-pocket expenses resulting from your injury. Because they have a specific dollar amount attached to them via receipts or invoices, they are easier to calculate. They include:
- Medical Expenses: Hospital stays, ER visits, diagnostic tests, and medications.
- Future Medical Costs: If your injury requires ongoing rehabilitation or future surgeries.
- Lost Wages: Income lost while you were unable to work during recovery.
- Property Damage: The cost to repair or replace vehicles or personal items.
2. Non-Economic Damages (General Damages)
This category covers subjective losses that do not have a fixed price tag, commonly referred to as "Pain and Suffering." This includes emotional distress, loss of enjoyment of life, and physical discomfort. Lawyers and insurance adjusters typically use the Multiplier Method to estimate this value.
The Multiplier Method Explained
The multiplier method takes the total of your medical expenses and multiplies them by a number (typically between 1.5 and 5). A minor injury like a sprained wrist might use a 1.5 multiplier, while a catastrophic injury resulting in permanent disability might use a 5.0 multiplier.
Example Calculation
If you have $10,000 in medical bills, $2,000 in lost wages, and your injury is assigned a multiplier of 3:
- Economic Damages: $10,000 + $2,000 = $12,000
- Pain and Suffering: $10,000 (Medical) × 3 = $30,000
- Total Estimate: $12,000 + $30,000 = $42,000
Factors That May Affect Your Final Settlement
While a calculator provides a baseline, several real-world factors can drastically change the final check amount:
- Comparative Negligence: If you are found to be partially at fault for the accident, your settlement may be reduced by your percentage of fault.
- Insurance Policy Limits: If the at-fault party only has a $25,000 policy, it may be difficult to recover $100,000 regardless of the calculation.
- Venue: Some geographic locations are known for higher or lower jury awards.
- Strength of Evidence: Clear police reports and immediate medical documentation lead to higher settlements.