1. What is a Loss of Earning Capacity Calculator?

Definition: This calculator estimates the financial impact of reduced earning capacity due to disability or other factors affecting work ability.

Purpose: It helps individuals and social security professionals quantify potential income loss for disability claims or compensation cases.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( LEC \) — Loss of Earning Capacity (USD)
• \( E \) — Expected earnings without impairment (USD)
• \( k \) — Capacity factor (0 to 1, where 1 = full capacity, 0 = no capacity)

Explanation: The formula calculates the difference between what someone could earn at full capacity and what they can earn with their current capacity.

3. Importance of LEC Calculation

Details: Accurate LEC calculations are crucial for fair disability determinations, social security benefits, and personal injury settlements.

4. Using the Calculator

Tips: Enter your expected full earnings potential and your current capacity factor (0-1). The capacity factor represents your remaining earning ability.

5. Frequently Asked Questions (FAQ)

Q1: How is the capacity factor determined?
A: It's typically assessed by medical professionals and vocational experts based on your residual functional capacity.

Q2: What's considered in expected earnings?
A: This should reflect your earning potential based on education, experience, and local job market conditions.

Q3: Can this be used for SSDI claims?
A: While this provides an estimate, official SSDI determinations consider additional factors beyond this simple calculation.

Q4: How often should I recalculate LEC?
A: Recalculate whenever your medical condition or earning potential changes significantly.

Q5: What if my capacity varies?
A: Use an average capacity factor or calculate different scenarios to show range of impact.