Workers Comp Settlement Calculator
Estimate a workers compensation settlement using disability rating, average weekly wage (AWW), and state body-part schedule. Used for initial settlement negotiation in permanent partial disability (PPD) and permanent total disability cases.
The Workers Comp Settlement Formula
Most states: Settlement = AWW × Compensation Rate × Weeks Allowed for Body Part × Impairment Rating %. Compensation rate is typically 66.67% of AWW, capped at the state maximum. Weeks allowed comes from the state schedule (loss of hand = X weeks, loss of leg = Y weeks). Impairment rating from authorized treating physician using AMA Guides 6th Edition in most states.
Average Weekly Wage (AWW) Calculation
AWW typically calculated from 52 weeks before injury. Includes wages, overtime, bonuses, second-job earnings. Tips and commissions count where documented. The state cap matters: California cap is approximately $1,651/week (2026); Florida $1,260/week; New York $1,250/week. Verify your state's current cap with the comp board.
Lump Sum vs Structured Settlement
Lump sum: full amount at closing, you manage. Structured: periodic payments over years, often tax-advantaged and offers protection from spending too fast. Trade-off: lump sum gives flexibility but requires discipline. Structured protects against spending mistakes but locks in low growth. Medicare Set-Aside (MSA) may be required if injury implicates future Medicare benefits.
Settlement Considerations Beyond Money
Future medical: closing out future medical = risk if symptoms return. Most states allow medical to remain open. Loss of right to return to work for that employer (often required in compromise settlements). Subrogation: third-party liability claim may reduce comp settlement. Always consult comp attorney before signing — most states require approval by Workers Comp Board or judge.
Sources: AMA Guides 6th Edition, state workers comp schedules. Last updated: May 2026. Not legal advice.