1. What is Future Wage Loss?

Future wage loss refers to the difference between what an individual would have earned had an injury or event not occurred and what they are actually able to earn after the event, projected over a certain period of time.

2. How Does the Calculator Work?

The calculator uses the future wage loss equation:

Where:

• \( Future\ Salary \) — Expected annual salary without the event (USD)
• \( Mitigation \) — Alternative income earned after the event (USD)
• \( Years \) — Number of years the loss is projected for

Explanation: The equation calculates the cumulative difference between potential and actual earnings over a specified time period.

3. Importance of Wage Loss Calculation

Details: Accurate wage loss projection is crucial for legal settlements, insurance claims, and personal financial planning after career-impacting events.

4. Using the Calculator

Tips: Enter future salary and mitigation amounts in USD, and years as a decimal number if needed (e.g., 2.5 years). All values must be valid (non-negative numbers, years > 0).

5. Frequently Asked Questions (FAQ)

Q1: What counts as mitigation income?
A: Any earnings from alternative employment, self-employment, or other income sources that replace the original salary should be included.

Q2: How do you determine future salary?
A: Future salary can be based on career trajectory, industry averages, or past earnings growth, often with input from vocational experts.

Q3: What time period should be used?
A: The period should reflect either until retirement age or until expected return to previous earning capacity, whichever comes first.

Q4: Should inflation be considered?
A: For long-term projections, future salary might need to include expected cost-of-living increases.

Q5: Are there limitations to this calculation?
A: This is a simplified model. Complex cases may require accounting for benefits, bonuses, career advancement potential, and other factors.