Lost Earnings Calculator

Formula

The formula to calculate the lost earnings is:

\[ E_l = E_a \times T_m \]

Where:

Lost Earnings: Refers to the amount of income that an individual or business fails to earn due to various reasons such as illness, injury, or other unforeseen circumstances. This concept is often used in legal and financial contexts to quantify the economic impact of an event that prevents someone from working or operating their business as usual. Calculating lost earnings helps in determining compensation or insurance claims, and it can also be used for financial planning and analysis.

Let's say the average earnings per time period (Ea) is $500 and the number of time periods missed (Tm) is 10. Using the formula:

\[ E_l = 500 \times 10 \]

We get:

\[ E_l = 5000 \]

So, the lost earnings for missing 10 time periods with an average earning of $500 per period is $5000.