1. What is a Losing Capacity Calculator?

Definition: This calculator estimates the financial loss due to reduced earning capacity based on expected earnings and capacity factor.

Purpose: It helps individuals, legal professionals, and insurance companies quantify potential income loss from reduced work capacity.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( LEC \) — Loss of Earning Capacity (USD)
• \( E \) — Expected Earnings (USD)
• \( k \) — Capacity Factor (0 to 1)

Explanation: The expected earnings are multiplied by the inverse of capacity (1 - k) to determine the financial impact of reduced earning capacity.

3. Importance of Loss of Capacity Calculation

Details: Accurate calculation helps in legal settlements, disability claims, and financial planning for individuals with reduced work capacity.

4. Using the Calculator

Tips: Enter the expected earnings in USD and capacity factor (0 for complete loss, 1 for full capacity, default 0.5 for 50% capacity).

5. Frequently Asked Questions (FAQ)

Q1: What is the capacity factor?
A: The capacity factor (k) represents the remaining earning capacity, where 0 means no earning capacity and 1 means full earning capacity.

Q2: How do I determine my capacity factor?
A: This is typically determined by medical professionals or vocational experts assessing your work limitations.

Q3: What's included in expected earnings?
A: Include all potential income - salary, bonuses, benefits, and future earning potential.

Q4: Can this be used for temporary disability?
A: Yes, for temporary disability use the expected earnings during the disability period.

Q5: How accurate is this calculation?
A: It provides a basic estimate. For precise calculations, consult with financial and legal professionals.