Personal Injury Settlement Calculator

Settlements include two damage types. Economic (special) damages are quantifiable losses: medical bills, future medical costs, lost wages, and reduced earning capacity. Non-economic (general) damages cover pain, suffering, emotional distress, and reduced quality of life.

The most common method for non-economic damages is the multiplier method: total economic damages × a factor (1.5×–5×) based on severity. Your gross settlement equals economic + non-economic damages, then reduced by your percentage of fault.

The multiplier method applies a factor to total economic damages to produce a non-economic figure. A 1.5× multiplier fits minor soft-tissue injuries with full recovery. A 3× multiplier applies to significant injuries requiring surgery. A 5× or higher multiplier is reserved for catastrophic injuries with permanent disability or chronic pain.

Courts and insurers weigh injury severity, treatment duration, daily life impact, and quality of medical documentation when evaluating which multiplier to apply.

Comparative negligence reduces your settlement by your share of fault. If you are 20% at fault and damages are $100,000, you recover $80,000. Most states use modified comparative negligence — barring recovery if you are more than 50% (or 51%) at fault.

Alabama, Maryland, North Carolina, Virginia, and Washington D.C. use contributory negligence, which bars recovery if you bear any fault at all. Fault is determined by insurance adjusters or a jury.

Personal injury attorneys work on contingency — they only get paid if you win. The standard fee is one-third (33.3%) of the recovery, rising to 40% if the case goes to trial. Some attorneys charge 25%–33% for straightforward cases.

Case costs (filing fees, expert witnesses, medical records, depositions) are typically deducted separately from your settlement. Always review the full fee agreement before signing.

Minor claims with clear liability often settle within 3–12 months after you reach maximum medical improvement (MMI). Moderate to severe claims typically take 1–3 years. Complex cases with permanent disability or multiple defendants may take 3–5+ years.

It is generally advisable to wait until MMI before settling — settling too early can leave you undercompensated for future care. Most states have a 2–3 year statute of limitations from the date of injury.

Under IRC Section 104, compensatory damages for physical injuries are generally excluded from federal income tax. Medical bills, pain and suffering, and lost wages from physical injury are typically tax-free.

Exceptions: punitive damages are always taxable; emotional distress not tied to physical injury is taxable; interest on settlement proceeds is taxable. If you previously deducted medical expenses and then received compensation for them, that portion may be partially taxable. Consult a tax professional.

The statute of limitations is your legal deadline to file suit. Miss it and you lose your right to sue permanently. Most states allow 2–3 years from the date of injury. California and New York allow 2 years; Texas allows 2 years; Florida recently reduced from 4 to 2 years (for claims after March 24, 2023).

Medical malpractice limits are often shorter (1–3 years) and may use a discovery rule. Government entities typically require a written claim within 6 months to 1 year. Minors and people with disabilities often have extended deadlines.