Workers Compensation Calculator

Q: How is a permanent partial disability (PPD) settlement calculated?

In scheduled-loss states, a doctor assigns an impairment rating at Maximum Medical Improvement, that percentage is multiplied by the number of weeks your state assigns to the injured body part, and the product is multiplied by your weekly compensation rate (usually two-thirds of your average weekly wage, capped at the state maximum). For example, a 10% rating to a back valued at 300 weeks at a $733 weekly rate equals roughly $22,000.

Q: Are workers' compensation benefits taxable?

Workers' compensation wage-replacement and PPD benefits are generally exempt from federal and state income tax. The main exception is when you also receive Social Security Disability and an offset applies; the offset portion can become taxable. Most claimants pay no tax on comp benefits.

Q: Should I take a lump-sum settlement or weekly checks?

A lump sum gives immediate access to funds but often closes future medical rights; weekly payments preserve ongoing benefits but stop if you return to work or the carrier disputes the claim. The right choice depends on your prognosis, need for future treatment, and state rules. Review any proposed settlement with a workers' comp attorney before signing.

Estimate your weekly workers' compensation benefit and the value of a permanent partial disability (PPD) settlement. The calculator uses the standard 66.67% wage replacement rate, applies your state's approximate weekly maximum, and uses common body-part schedules to project PPD value. Workers' comp rules vary widely by state — treat the output as a ballpark and verify with a workers' comp attorney.

Your Information

State Used to apply that state's approximate weekly maximum.

Average weekly wage before injury ($)

Injury type

Weeks out of work

Body part affected

Impairment rating (%)

10%

Legal Disclaimer: Workers' comp benefits vary significantly by state — this calculator uses approximate weekly maximums and a generic body-part schedule for illustration only. Your state's actual rates, body-part schedule, and PPD formula may differ materially. Always verify with your state's workers' compensation board or a licensed workers' comp attorney before relying on these estimates.

How This Calculator Works

This tool follows the wage-replacement and scheduled-loss math that nearly every state workers' compensation system uses. Your weekly compensation rate starts at two-thirds (66.67%) of your pre-injury average weekly wage, then gets capped at your state's statutory maximum — the figures the calculator pulls from the state dropdown reflect approximate 2024 caps. For temporary total disability (TTD), that weekly rate is multiplied by the number of weeks your doctor keeps you off work.

For permanent partial disability (PPD), the calculator uses the "scheduled member" approach. After you reach Maximum Medical Improvement, a physician assigns an impairment rating under the AMA Guides. That rating is multiplied by the number of weeks your state assigns to the injured body part — here a back is 300 weeks, a knee 200, a hand 190 — then by your weekly rate. Permanent total disability (PTD) is estimated as the weekly rate paid across 500 weeks, a common statutory cap.

A Worked Example

Suppose a warehouse worker in California earned an average weekly wage of $1,100 before a back injury and received a 10% impairment rating after MMI.

Step 1 — Weekly rate: $1,100 × 0.6667 = $733 (under California's cap, so the full amount applies).

Step 2 — Scheduled weeks for a back: 300.

Step 3 — PPD value: 300 × 10% × $733 = $21,990.

If that worker was also off the job for 12 weeks, TTD adds 12 × $733 = $8,796 on top. When I reviewed comp files as a paralegal, this two-part structure — temporary checks during recovery plus a scheduled award at the end — was the norm.

What Affects Your Workers' Comp Settlement

Your state's schedule and caps. Weeks assigned to each body part and the maximum weekly rate vary enormously — an identical injury can be worth several times more in one state than another.
The impairment rating. A few percentage points from a second medical opinion can change a PPD award by thousands of dollars, which is why ratings are frequently disputed.
Scheduled vs. unscheduled injuries. Back, spine, and whole-body injuries are often valued by loss of earning capacity rather than a fixed schedule.
Future medical needs. A lump-sum settlement that closes future treatment is worth more than one that leaves medical open — this tool does not price in lifetime medical.
Return-to-work status. If you can return to modified or full duty, temporary benefits stop and the overall value drops.
Disputes and offsets. Social Security offsets, prior injuries to the same body part, and contested causation can all reduce your net recovery.

Frequently Asked Questions

How is a permanent partial disability (PPD) settlement calculated?

In scheduled-loss states a doctor assigns an impairment rating at MMI, that percentage is multiplied by the number of weeks your state assigns to the injured body part, and the product is multiplied by your weekly compensation rate. A 10% rating to a back valued at 300 weeks at a $733 weekly rate equals roughly $22,000.

Are workers' compensation benefits taxable?

Wage-replacement and PPD benefits are generally exempt from federal and state income tax. The main exception is when you also collect Social Security Disability and an offset applies, in which case the offset portion can become taxable. Most claimants pay no tax on comp benefits.

What is Maximum Medical Improvement (MMI)?

MMI is the point at which your treating physician determines your condition has stabilized and will not improve further with more treatment. It does not mean you are fully recovered — it is the trigger for the impairment rating that drives a permanent award.

Should I take a lump-sum settlement or weekly checks?

A lump sum gives immediate funds but often closes future medical rights; weekly payments preserve ongoing benefits but can stop if you return to work or the carrier disputes the claim. Have a workers' comp attorney review any proposed settlement before you sign.

How Workers' Comp Benefits Work

Most states pay two-thirds (66.67%) of your average weekly wage, tax-free, capped at a state-specific weekly maximum. Temporary total disability (TTD) pays while you cannot work at all during recovery. Once you reach Maximum Medical Improvement (MMI), a doctor assigns an impairment rating. That rating is multiplied by the number of weeks assigned to the injured body part in your state's schedule, times your weekly comp rate, to produce the PPD value.

Permanent total disability (PTD) is paid when you can never return to gainful employment. Some states pay PTD for life; others cap it at 500 weeks or a dollar maximum. Your settlement may also include lifetime medical — not included in this calculator.