PRESENT VALUE OF FUTURE DAMAGES CALCULATOR

Case Name: [________________________________]
Case/Claim Number: [________________________________]
Date of Calculation: [__/__/____]
Prepared By: [________________________________]

SECTION 1: CLAIMANT INFORMATION

Name: [________________________________]
Date of Birth: [__/__/____]
Current Age: [____]
Date of Injury/Loss: [__/__/____]
Age at Injury/Loss: [____]

SECTION 2: LIFE/WORK EXPECTANCY

Life Expectancy:

Life Expectancy Used: [____] years
Projected Age at Death: [____] years

Work Life Expectancy:

Work Life Expectancy Used: [____] years
Projected Retirement Age: [____] years

SECTION 3: DISCOUNT RATE SELECTION

Jurisdictional Requirements:

State: [____]

☐ No statutory rate - market rate applies
☐ Statutory rate mandated: [____]%
☐ Total offset method (Pennsylvania)
☐ Net discount method required
☐ Jury discretion with guidance

Rate Selection:

Method 1: Gross Discount Rate Approach

Selected Gross Discount Rate: [____]%

Method 2: Net Discount Rate Approach

Method 3: Total Offset (Pennsylvania Only)

☐ Using total offset method - PV = Annual Amount × Years

SECTION 4: PRESENT VALUE FORMULAS

Single Sum Present Value:

PV = FV ÷ (1 + r)^n

Where:
- PV = Present Value
- FV = Future Value
- r = Discount Rate (as decimal)
- n = Number of Years

Annuity Present Value (Equal Annual Payments):

PV = PMT × [(1 - (1 + r)^-n) ÷ r]

Where:
- PV = Present Value
- PMT = Annual Payment Amount
- r = Discount Rate (as decimal)
- n = Number of Years

Growing Annuity Present Value:

PV = PMT × [(1 - ((1 + g)/(1 + r))^n) ÷ (r - g)]

Where:
- g = Growth Rate (as decimal)
- All other variables as above

SECTION 5: LOST EARNINGS PRESENT VALUE

A. Historical Earnings Data

B. Base Annual Earnings

C. Wage Growth Rate

D. Lost Earnings Calculation (Year-by-Year)

(Continue for all years to retirement)

TOTAL PRESENT VALUE OF LOST EARNINGS: $ [________________]

E. Alternative: Annuity Calculation

SECTION 6: FUTURE MEDICAL EXPENSES PRESENT VALUE

A. Annual Medical Expense Projection

B. Medical Inflation Rate

C. Future Medical Present Value Calculation

(Continue for remaining life expectancy)

TOTAL PRESENT VALUE OF FUTURE MEDICAL: $ [________________]

SECTION 7: LUMP SUM FUTURE EXPENSES

One-Time Future Expenditures:

SECTION 8: HOUSEHOLD SERVICES PRESENT VALUE

A. Household Services Valuation

B. Present Value Calculation

SECTION 9: DISCOUNT FACTOR TABLE REFERENCE

Present Value of $1 (Single Sum)

Present Value of $1 Annuity

SECTION 10: PRESENT VALUE SUMMARY

SECTION 11: SENSITIVITY ANALYSIS

Impact of Discount Rate Variation:

Impact of Life/Work Expectancy Variation:

SECTION 12: ECONOMIST CERTIFICATION

Economist Name: [________________________________]
Credentials: [________________________________]
Organization: [________________________________]
Date of Analysis: [__/__/____]

Key Assumptions:
1. [________________________________]
2. [________________________________]
3. [________________________________]

Methodology:
☐ Net Discount Method
☐ Gross Discount Method
☐ Total Offset Method
☐ Other: [________________________________]

SECTION 13: DOCUMENTATION CHECKLIST

☐ Tax returns (5 years)
☐ W-2s and 1099s
☐ Employment records
☐ Life expectancy tables
☐ Work life expectancy data
☐ Medical records/life care plan
☐ Treasury rate documentation
☐ Inflation rate documentation
☐ Economist report
☐ Vocational expert report

CERTIFICATION

I certify that the present value calculations in this worksheet are based on reasonable economic assumptions and accepted methodologies. This worksheet is for settlement calculation purposes and results should be verified by a qualified forensic economist.

Signature: ________________________________________ Date: [__/__/____]

Print Name: [________________________________]

Title: [________________________________]

SOURCES AND REFERENCES

• Jones & Laughlin Steel Corp. v. Pfeifer, 462 U.S. 523 (1983)
• The Knowles Group: Determining Present Value of Damages
• Brown Economic Consulting: Present Value Calculator
• Fulcrum: The Appropriate Discount Rate in Lost Earnings Claims
• Physicians Life Care: State Damages Required in Present Value

This worksheet is for informational purposes only. Present value calculations for litigation require analysis by a qualified forensic economist. Consult legal counsel regarding applicable law and evidentiary standards in your jurisdiction.