Disability Benefit Offset Calculator
Calculate how disability benefits from multiple sources interact and offset each other. See your actual net benefit after the 80% cap rule, tax impacts, and income projections through retirement.
Pre-Disability Earnings
Government Disability Benefits
Employer & Private Disability Benefits
Timeline & Retirement
Disability Income Adequacy Score
Your combined disability benefits provide strong income replacement. You are well-positioned to maintain financial stability during your disability period.
Income Replacement
79%
Monthly Gap
$1,133
Total Gross Benefits
$4,750
per month before offsets
Net After Offsets
$4,368
per month after caps & taxes
Income Replacement Rate
79%
of pre-disability income
Monthly Income Gap
$1,133
shortfall from pre-disability
Disability Income Sources Over Time
How your benefit sources change from disability through retirement transition
Benefit Sources Breakdown (After Offsets)
How your disability income is distributed across sources in year one
Total
$57,000
SSDI
38%$21,600/yr
Workers' Comp
46%$26,400/yr
Employer Disability
16%$9,000/yr
Pre-Disability Income vs. Disability Benefits
Comparison of your monthly pre-disability earnings against gross and net disability income
Year-by-Year Benefit Projection
Detailed projection of disability income, offsets, and retirement balance
| Year | Age | Phase | Gross Benefits | Offset Reduction | Net Benefits | Income Gap | Retirement Balance |
|---|---|---|---|---|---|---|---|
| 1 | 45 | Disability | $57,000 | - | $52,410 | $13,590 | $263,641 |
| 6 | 50 | Disability | $50,838 | - | $47,173 | $27,500 | $341,681 |
| 11 | 55 | Retired | - | - | - | $84,486 | $442,889 |
| 16 | 60 | Retired | - | - | - | $95,588 | $592,685 |
| 21 | 65 | Retired | - | - | - | $108,149 | $793,146 |
| 25 | 69 | Retired | $30,258 | - | $25,719 | $93,657 | $1,062,618 |
Personalized Insights
Actionable recommendations based on your numbers
Your disability benefits replace 79% of pre-disability income
After applying the 80% cap rule and tax adjustments, your net monthly disability income is $4,368 compared to $5,500 in pre-disability earnings. This is a strong replacement rate.
Your benefits are below the 80% cap — no SSDI offset applied
Your combined SSDI ($1,800) and workers' comp ($2,200) total $4,000/month, which is under the 80% cap of $4,400. You receive the full SSDI amount without reduction.
You face a $1,133/month income shortfall
Your net disability income falls $1,133 short of your pre-disability earnings each month. Over 10 years, this gap totals approximately $135,960. Consider emergency fund strategies, expense reduction, or supplemental income sources.
Employer LTD benefits end after 24 months (year 2)
Your employer long-term disability pays $1,500/month but expires after 24 months. After that, you lose $18,000/year in benefits. Plan for this income cliff by building reserves during the LTD period.
Consider individual disability insurance for gap protection
A personal disability policy would provide additional income that cannot be offset by SSDI or workers' comp. Individual policies with own-occupation definitions are the most valuable because they pay regardless of other benefit sources and are typically non-taxable if you paid premiums with after-tax dollars.
SSDI converts to retirement benefits at age 67
When you reach full retirement age, your SSDI automatically converts to Social Security retirement benefits of $2,400/month. The transition is seamless — the 80% offset rule no longer applies, and workers' comp coordination ends. Your retirement benefit amount equals what you would have received based on your earnings record.
40% of your disability income is tax-free
Workers' comp ($2,200/month) and VA disability ($0/month) are generally not subject to federal income tax. SSDI may be taxable if combined income exceeds $25,000 (single) or $32,000 (married filing jointly). Employer-paid LTD premiums typically make those benefits taxable.