If you qualify for the federal Social Security Disability Insurance (SSDI) program, your payments are determined by a complex formula drawn from a number of factors about your work experience, income and age. By nature of this formula, you will always receive less than you earned, on average, over the years you worked — in some cases much less and in others up to 90 percent of what you used to make.
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If you have an account with the Social Security Administration (SSA), you can see a detailed and more accurate calculation of your benefits on the SSA website. For a quick ballpark estimate of what someone in a position similar to yours might receive if approved for disability in 2018, try the calculator below.
Fill out the three prompts below to estimate how much you might receive from SSDI and how that compares to what you currently earn.
How much do you make in a year?
To calculate how much someone receives as their disability benefit, the SSA uses the average amount you've earned per month over the past 40 years (excluding your five lowest-earning years), adjusted for inflation.
To simplify this formula here, just enter your typical annual income. This income will be adjusted to estimate wage growth over your career.
How old are you?
Your age determines how many work credits you need in order to qualify. In general, the younger you are, the fewer credits are needed.
People age 67 and older do not qualify for SSDI disability, but you can still use this calculator to see how much a 66-year-old with similar income and work experience could receive.
There are special rules for younger workers that this calculator does not include. Estimates may not be accurate for people younger than 24.
How many total years have you worked?
In order to receive benefits, you must have earned a certain number of “work credits” over your lifetime. The minimum number of credits needed varies depending on your age.
You can earn up to four work credits a year. Each $1,300 you earn counts as one credit.
Your monthly income now:$0Estimated disability benefit:$0
Based on the information you entered, you probably would not qualify for disability benefits.
You have about 0 work credits, 6 fewer than the minimum needed for someone of your age to qualify. You would have to work 2 more years to earn enough credits to receive these benefits.
The figures in this calculator are ballpark estimates only. Read more about the methodology and data used.
This calculator provides a rough estimate of what someone could expect to receive from SSDI. For a detailed view of your individual finances, refer to the Social Security Administration.
Source: Social Security Administration
How the calculator works
This calculator replicates SSA’s process of calculating SSDI payments.
This process includes determining elapsed years, computation years and average indexed monthly income (AIME) according to SSA’s guidelines. Those variables are then used in the SSA’s primary insurance amount (PIA) formula to calculate the benefit amount.
To avoid having you enter every year of your income, this calculator makes assumptions about past earnings. It assumes that you earned less money earlier on in your career because you had fewer skills and less experience and that later in your career your earnings grew more slowly.
This simulated wage growth and simplified formula provide only a ballpark disability payment estimate. They don’t take into account extenuating factors that can affect payments, such as years spent caring for a child instead of earning income. This calculator also doesn’t include some SSA provisions, like the “recency-of-work” test, which determines whether you’ve worked recently enough to qualify.
For a more detailed look at disability payments by income, try the SSA’s calculators or register for an account with SSA.
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The underground economy has long been a part of rural America, where some receiving disability benefits are forced to work to survive.
Knowing how to calculate your expected Social Security disability payment can help you better budget for your financial future. The process for calculating payments differs depending on whether you are receiving SSDI or SSI benefits.
How SSDI Benefits Are Calculated
If you are applying for Social Security Disability Insurance (SSDI) benefits, your payment will be based on your average earnings before you became disabled. As a form of insurance, payments are higher for those who paid more taxes on their wages before becoming disabled. Your household income or the severity of your disability does not affect your benefit amount.
Your monthly SSDI benefit is based on your Average Indexed Monthly Earnings (AIME) and Primary Insurance Amount (PIA).
Your AIME is calculated using up to 35 of your working years. The Social Security Administration (SSA) adds together the years with the highest indexed earnings and divides them by the total number of months for those years. Then, the average is rounded down to reach your AIME.
Your PIA is the base amount of your benefits. It is calculated using the total of three fixed percentages of your AIME and bend points that change each year to reflect the national average wage index. You receive 90% of the earnings up to the first bend point, 32% of the earnings up to the second bend point, and 15% of earnings that exceed the third bend point.
In 2020, the average SSDI benefit amount was $1,258 per month. The highest category of earners received payments of $3,011. You can check your own expected payment by visiting the Social Security website. Create an account, then look for your benefits statement. This statement will show your Social Security covered earnings for each year and provide the payment you can expect if your SSDI application is approved.
To encourage recipients to return to work if they feel they are able to do so, the SSA has implemented a Trial Work Period (TWP) of a total of nine months, not necessarily consecutive, over a 60-month period. During these nine months, you can earn an unlimited amount without your benefits being affected.
When you finish your TWP, you will enter the Extended Period of Eligibility (EPE). This is a 36-month period where you can receive your full benefit every month as long as you remain disabled and your earnings are less than the substantial gainful activity (SGA) threshold. The SGA threshold changes each year and is based on the poverty level for a single person. In 2020, the SGA threshold was $1,260 per month.
How SSI Payments Are Calculated
Unlike SSDI, Supplemental Security Income (SSI) is a need-based program. People who have low income, minimal assets, and insufficient work credits for SSDI can apply to receive cash compensation. In some cases, people who receive very low SSDI payments can also receive SSI benefits—which is referred to as a concurrent claim.
SSI payments are calculated based on what is referred to as the Federal Benefit Rate (FBR). For 2020, the FBR is $783 for an eligible individual, $1,175 for an eligible individual with an eligible spouse, and $392 for an essential person. Any countable income you have, such as funds from performing odd jobs, reduces the benefits you receive.
Cost of Living Adjustment for SSDI and SSI
There is an annual cost of living adjustment (COLA) to account for the increased expenses SSDI and SSI recipients face each year. The adjustment is determined by increases in the Consumer Price Index (CPI). As an example, SSDI and SSI recipients received a 1.6% COLA for 2020.
If You Need Help With an Application for Social Security Disability Benefits
SSDI and SSI benefits provide a vital financial lifeline for individuals who are unable to work due to physical or mental disabilities. If you are applying for Social Security disability benefits, you need to speak with an experienced Social Security disability attorney as soon as possible to ensure that your application thoroughly documents your condition and your legal right to benefits. Please contact us online, or call our Virginia Beach office to schedule your free consultation. We have offices throughout Virginia, including Chesapeake, Newport News, Norfolk, and Suffolk.
Related links:
- Why Most SSD Applications Are Initially Denied
- What Your Disability Onset Date Means
- Receiving Both Social Security Disability and Veterans Disability Benefits