How to Calculate Your Social Security Disability Benefits

Social Security Disability Insurance (SSDI) is a federal program providing monthly benefits to individuals unable to work due to a significant medical condition expected to last at least one year or result in death. Funded through payroll taxes, it functions as an insurance program, aiming to replace a portion of lost earnings for eligible workers. The amount an individual receives is personalized, reflecting their work history and contributions to the Social Security system.

Understanding Your Earnings History and Average Indexed Monthly Earnings (AIME)

SSDI benefits are based on a worker’s lifetime earnings, not current financial need. The Social Security Administration (SSA) tracks an individual’s earnings record, which includes all wages and self-employment income on which Social Security taxes were paid.

To ensure past earnings reflect their current value, the SSA “indexes” them. Indexing adjusts earlier earnings to account for changes in average wages over time, preventing inflation from eroding their purchasing power. This makes older earnings comparable to more recent ones.

After indexing, the SSA calculates your Average Indexed Monthly Earnings (AIME). This involves identifying your highest indexed earnings over a specific number of years. For disability benefits, the number of years used depends on your age at disability onset, generally considering earnings from age 21 up to the year of disability, while dropping some lowest earning years. The sum of these highest indexed earnings is then divided by the total number of months in those years to arrive at the AIME.

Calculating Your Primary Insurance Amount (PIA)

Once your Average Indexed Monthly Earnings (AIME) are determined, the Social Security Administration uses this figure to calculate your Primary Insurance Amount (PIA). The PIA represents the base amount of your monthly SSDI benefit. This is the amount you would receive if you retired at your full retirement age or became disabled.

The PIA calculation applies a progressive formula to your AIME. This formula uses “bend points,” which are specific dollar amounts that divide your AIME into segments. Different percentages are applied to each segment of your AIME to determine your PIA. For example, a high percentage is applied to the lowest segment, and lower percentages to higher segments.

This progressive structure means lower earners receive a higher percentage of their pre-disability income as benefits compared to higher earners, though higher earners may still receive a larger total dollar amount. The bend points are adjusted annually to reflect changes in the national average wage index. The resulting PIA is the monthly benefit amount before any potential adjustments or offsets.

Adjustments and Offsets to Your Monthly Benefit

The calculated Primary Insurance Amount (PIA) serves as the starting point for your monthly benefit, but various factors can modify the final payment amount.

Cost of Living Adjustments (COLAs)

Cost of Living Adjustments (COLAs) are applied annually to help benefits keep pace with inflation. These adjustments are determined by changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and typically increase monthly payments. For example, the COLA for 2025 was a 2.5% increase for Social Security benefits.

Family Maximum Benefit

A “family maximum benefit” limits the total amount of benefits that can be paid to a disabled worker and their eligible family members based on that worker’s earnings record. This cap is typically between 150% and 188% of the disabled worker’s PIA. If the sum of individual benefits for the worker, spouse, and children exceeds this maximum, dependents’ benefits are reduced proportionally until the cap is met, while the disabled worker’s own benefit remains unaffected. Dependent benefits may be available for a spouse, children under 18 (or 19 if still in high school), or adult children disabled before age 22, with each eligible family member potentially receiving up to 50% of the disabled worker’s PIA, subject to the family maximum.

Workers’ Compensation and Public Disability Benefits

Receiving workers’ compensation or other public disability benefits can lead to an offset of SSDI payments. Federal law dictates that the combined total of SSDI benefits and these other payments generally cannot exceed 80% of your average earnings before disability. If the combined amount surpasses this limit, your SSDI benefits are reduced. This offset continues until the individual reaches full retirement age.

Government Pension Offset (GPO) and Windfall Elimination Provision (WEP)

Historically, the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) impacted Social Security benefits for individuals who also received pensions from employment not covered by Social Security. The GPO reduced spousal or widow(er) Social Security benefits, and the WEP reduced the Social Security benefits of the individual who worked in non-covered employment. However, the Social Security Fairness Act, signed into law in January 2025, repealed both the GPO and WEP, meaning these reductions no longer apply.

Working While Disabled

Working while disabled can also affect benefit payments. The Social Security Administration defines “Substantial Gainful Activity” (SGA) as earning above a certain monthly amount, which for non-blind individuals is $1,620 per month in 2025, and $2,700 for blind individuals. Earning above the SGA limit can affect eligibility. To encourage work, the SSA offers a Trial Work Period (TWP), allowing recipients to earn any amount for nine months within a 60-month rolling period without affecting their SSDI benefits. In 2025, a month counts toward the TWP if earnings exceed $1,160. After the TWP, an Extended Period of Eligibility (EPE) of 36 months allows benefits to continue for any month earnings fall below SGA.

How to Obtain Your Personalized Benefit Estimate

Obtaining a personalized estimate for your potential Social Security Disability Insurance (SSDI) benefits is a practical next step. The most direct way to do this is by creating and regularly utilizing a “my Social Security” online account. This secure online portal provides access to your earnings record, which the SSA uses to calculate benefits.

Within your “my Social Security” account, you can view your personalized Social Security Statement. This statement provides estimates for your potential disability, retirement, and survivors’ benefits based on your recorded earnings. It offers a clear picture of what you might expect to receive.

For those who prefer traditional methods, the Social Security Statement is also available by mail upon request. While online calculators from third-party sources exist, they provide only general estimates. The most accurate information comes directly from the SSA through your personalized account or statement. For specific questions or detailed guidance, contacting the Social Security Administration directly by phone or in person is always an option.