Future Medical Expenses Calculator
Estimate the present value of future medical costs in a personal injury or disability case.
⚖️ Legal📐 PV = Annual Cost × Growth-Adjusted Annuity Factor
Annual future medical costs ($)
Years of future care needed
Discount rate %
Medical inflation rate %
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Future Medical Expenses Calculator | PV = Annual Cost × Growth-Adjusted Annuity Factor | $ present value |
Step-by-Step Examples
Example 1
Spinal Cord Injury
$50K annual, 30 years, 3% discount, 5% inflation.
- PV: ~$1.8M vs simple sum $1.5M
✓ ~$1.8M PV
Example 2
TBI Long-Term
$25K annual, 20 years.
- PV ~$415K
✓ ~$415K PV
Example 3
Chronic Condition
$8K annual, 40 years.
- PV ~$330K
✓ ~$330K PV
Real-World Applications
Plaintiff Attorneys
Calculate future care for catastrophic injury cases.
Life Care Planners
Estimate PV of medical projections.
Economic Experts
Calculate medical cost PV for litigation.
Defense Attorneys
Analyze plaintiff's future care claims.
Common Mistakes to Avoid
⚠️
Simple multiplication is wrong
Annual × years ignores time value of money and medical inflation. Courts require PV calculations.
⚠️
No expert = no court
Courts require life care planning and economic expert testimony for future costs.
Frequently Asked Questions
What is present value? ▾
Future dollars discounted to today's value because current dollars can earn interest.
Medical inflation? ▾
Historically 5-8% per year vs general CPI of 2-4%.
What experts are needed? ▾
Life care planners project specific needs; economists calculate PV of those projections.