Workers comp research guide
Workers comp lump sum calculator
Use a workers comp lump sum calculator to break down an offer after attorney fees, costs and medical reserves. Compare known weekly payments in today’s dollars.
Offer breakdown · USD
What is left from a lump sum offer?
Enter an existing gross cash offer. The defaults are a worked example, not a recommended fee or settlement amount. Weekly payments are a separate cash-flow reference.
Net cash = gross offer − fee on gross − other deductions. Available cash = net cash − earmarked cash. The weekly reference discounts payments at the end of each week using an effective annual rate.
Available cash after earmarking
$53,000
Medical reserves remain part of your net cash, but are excluded from this spending figure.
Gross cash offer
$100,000
Attorney fee amount
$15,000
Other costs and liens to deduct
$2,000
Net cash before earmarking
$83,000
Medical or other earmarked cash
$30,000
Weekly payments: total
$52,000
Weekly payments: present value
$52,000
The weekly reference includes no medical care, fees, inflation or benefit changes. It is not an annuity quote, a legal commutation or a recommendation to accept an offer. No taxes or public-benefit offsets are calculated.
A lump sum describes how money is paid, not which claim rights end. In California, a Compromise and Release usually exchanges a cash payment for closing the agreed claim, including future medical care; a stipulated award generally pays disability benefits over time and keeps covered medical treatment open. Other states use different settlement and commutation rules. Start with a written offer and its release terms. This tool checks the cash arithmetic; it does not value an injury, decide whether settlement is allowed, or calculate a state benefit award.
Planning example for U.S. workers compensation. A 15% attorney fee is an editable illustration, not a nationwide rule. Verify the actual fee basis, deductions and release terms with the state agency or your representative. Earmarked medical cash is not disposable income.
Worked example: from $100,000 gross to available cash
This is the calculator’s default example. All figures are hypothetical. The $30,000 reserve is already inside the net payment, not an extra payment or a second deduction for a lien.
Lump sum settlement questions
- How do you calculate a workers comp lump sum settlement?
- For a proposed cash offer, subtract the attorney fee and other deductions to find net cash, then separate funds earmarked for medical care. Determining the offer itself is different: state benefit rules, impairment, remaining wage benefits, future care and disputed issues affect it. This calculator starts with your offer and does not generate a claim value.
- Does a lump sum settlement always close future medical care?
- No. Payment timing and release scope are separate. A full Compromise and Release in California generally closes future medical liability, while other arrangements may commute some disability benefits or leave medical care open. Check the specific agreement and state rules; the word “lump sum” alone does not answer this.
- How much does a workers comp lawyer take from a settlement?
- There is no nationwide percentage. State limits, approval and the fee agreement determine the amount and the base it applies to. This tool’s 15% default is only an example and applies to the full gross offer. If the real fee uses another base, this example will not match your closing statement.
- Should a Medicare set-aside be subtracted from my settlement?
- Separate funds included in your net cash that are earmarked for future Medicare-covered injury treatment from cash available for other spending. A separately funded set-aside is not deducted again here. Protecting Medicare’s interests and meeting CMS review thresholds are different questions; a review threshold alone does not determine whether an allocation is appropriate.
- Is a lump sum better than weekly payments or a structured settlement?
- There is no universal answer. The weekly reference shows only the present value of the fixed payments you enter. Medical coverage, payment guarantees, costs, benefit eligibility and the rights released also matter. A structured settlement may combine cash and an annuity; its actual quote and payment terms cannot be inferred from this simple weekly model.
- What happens when fees or medical reserves exceed the offer?
- The tool shows a warning and floors available cash at $0. It does not erase a debt or determine who pays a lien. Reconcile the written deductions and reserves with the gross offer before relying on the result. Do not subtract the same medical allocation as both a lien and a reserve.
Check the offer before comparing payment options
- Read exactly which wage and medical rights the agreement releases. Confirm state approval requirements and whether you can settle only part of the claim.
- Ask for an itemized gross-to-net statement: the attorney fee basis, costs, liens, credits and any amounts the carrier pays separately. Count each item once.
- If future medical care closes, obtain a treatment budget and check Medicare’s interests and any public-benefit effects before treating earmarked funds as cash you can spend.