Loss of Earning Capacity Calculator

Formula

The formula to calculate the Loss of Earning Capacity is:

\[ LEC = (EE - CE) \times YA \]

Where:

$LEC$ is the Loss of Earning Capacity (\$)
$EE$ is the Expected Annual Earnings (\$)
$CE$ is the Current Annual Earnings (\$)
$YA$ is the Number of Years Affected

What is Loss of Earning Capacity?

Loss of earning capacity is a legal term that refers to the reduction in an individual's ability to earn income due to a disability or injury. It is a measure of the future income that the individual is estimated to lose because of the injury. This calculation is often used in legal cases to determine the amount of compensation an injured party should receive.

Example Calculation

Let's assume the following values:

Expected Annual Earnings (EE) = $70,000
Current Annual Earnings (CE) = $50,000
Number of Years Affected (YA) = 10

Using the formula:

\[ LEC = (70,000 - 50,000) \times 10 = 20,000 \times 10 = 200,000 \text{ dollars} \]

The Loss of Earning Capacity (LEC) is $200,000.