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Workers Compensation Settlement Estimator

Estimate permanent partial disability settlement value by state using impairment rating, average weekly wage, and 2026 compensation rate caps.

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Pre-injury AWW from the prior 52 weeks.

Whole person impairment per AMA Guides or state rating schedule. Typical range: 1% to 50%.

Medical Costs

Estimated ongoing treatment, medication, and follow-up costs per year.

Your Results

Enter claim details and click estimate.

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What This Calculator Does

This workers compensation settlement estimator projects the value of a permanent partial disability (PPD) claim based on state-specific compensation rates, the whole person impairment rating, average weekly wage, and medical costs. It covers 15 major states with 2026 weekly benefit caps, compensation rate percentages, and PPD week multipliers. The tool provides a settlement range showing both the lump-sum discount value and the higher litigation value to help injured workers and attorneys evaluate settlement offers.

The Formula

Weekly Benefit = min(AWW x Comp Rate, State Max) | PPD Value = Impairment % x Weeks per Percent x Weekly Benefit | Settlement = PPD Value + Medical to Date + Future Medical

The weekly compensation rate is calculated by multiplying the average weekly wage (AWW) by the state compensation rate (typically 66.67% for most states). This rate is capped at the state maximum weekly benefit. The permanent partial disability value is determined by multiplying the impairment rating percentage by a state-specific number of weeks per percent of impairment, then multiplying by the weekly benefit rate. Total settlement value adds medical costs already incurred and projected future medical expenses. The range reflects a 25% discount for lump-sum settlement at the low end and a 20% premium for contested claims at the high end.

Step-by-Step Example

1

Select state and enter AWW

California selected. Average weekly wage: $1,200. Comp rate: 66.67%. Weekly benefit: $800 (capped at state max of $1,620).

2

Enter impairment rating

10% whole person impairment per AMA Guides, 6th Edition. PPD weeks: 10% x 4 weeks/percent = 40 weeks.

3

Add medical costs

Medical to date: $15,000. Future medical: 3 years at $5,000/year = $15,000.

4

Review settlement estimate

PPD: $32,000. Medical: $30,000. Total: $62,000. Range: $46,500 (lump-sum) to $74,400 (litigation value).

Real-World Use Cases

Settlement Negotiation

Injured workers and their attorneys evaluate whether a settlement offer is within the expected range before accepting or rejecting the offer.

Case Valuation

Workers compensation attorneys estimate case value during intake to determine whether to accept a case and project potential attorney fees.

Claims Reserve Setting

Insurance adjusters and self-insured employers estimate reserves for open PPD claims using impairment ratings and state-specific benefit schedules.

Common Mistakes to Avoid

  • Using the wrong average weekly wage calculation. AWW is typically based on the highest 52 consecutive weeks of earnings in the prior 2 to 3 years, including overtime and bonuses. Each state has its own AWW calculation method.

  • Not accounting for the state maximum weekly benefit cap. High-wage earners may hit the cap, meaning their actual weekly benefit is lower than the calculated percentage of AWW.

  • Confusing whole person impairment with scheduled member impairment. Many states have separate benefit schedules for injuries to specific body parts (arms, legs, hands) that may be more or less favorable than the whole person rating.

  • Forgetting to include future medical costs in the settlement. Closing out medical benefits (Medicare Set-Aside) may be required for settlements above $25,000 when Medicare is a secondary payer.

Frequently Asked Questions

Accuracy and Disclaimer

Workers compensation laws vary significantly by state, and this calculator provides estimates based on simplified state-specific parameters. Actual settlement values depend on the specific injury, medical evidence, impairment rating methodology, vocational factors, and negotiation dynamics. Compensation rates and caps are based on 2026 published schedules and may be updated annually. This tool is not legal advice. Consult a licensed workers compensation attorney in your state for case-specific guidance.