How is SSDI Calculated?

The Social Security Administration (SSA) calculates Social Security Disability Insurance (SSDI) benefits based on your average income before you became disabled. The SSA uses complicated formulas to calculate your benefits.

SSDI calculations are complicated, and the total varies per person. Your monthly benefits will depend on how much you’ve paid into Social Security through wages. The severity of your disability does not matter in the calculation.

While you can make basic calculations to get a general idea of how much your benefits will be, ultimately, you’ll need the assistance of an Atlanta Social Security Disability lawyer  to learn how your SSDI is calculated.

How are SSDI Benefits Calculated?

When you apply for SSDI benefits, the SSA will look at what you’ve paid into Social Security taxes from your income. The formula starts with your Average Indexed Monthly Earnings (AIME). The AIME is your average earnings from Social Security-covered income, adjusted for wage growth.

However, the SSA doesn’t use every year that you’ve worked. First, they count up the number of years from age 22 to the year before you were disabled, drop a certain number of years, then take that number of your highest-earning years to make the AIME.

After getting your AIME, the SSA will determine your Primary Insurance Amount (PIA), also known as your full retirement benefit. The SSA uses your PIA to determine a base point for your benefits. This process represents a complicated calculation that, for non-retirees, depends on the age at which they become unable to work.

The Primary Insurance Amount for SSDI

The amount of money you get from SSDI depends on the PIA calculation. It is a progressive formula, like how taxes work, but in reverse. The more you’ve earned, the less you’ll get for the higher income brackets.

If you become eligible for SSDI benefits in 2025, your PIA would be the total of:

• 90% of the first $1,226 of your AIME
• 32% of your AIME between $1,226 and $7,391
• 15% of your AIME over $7,391

The SSA totals these percentages and rounds the sum to the lower multiple of 10 cents. Each portion is the “bend point” for calculating your SSDI.

To know the numbers for your case, you can check your Social Security account‘s annual statement. The SSA also has an online benefit calculator where you can enter the numbers yourself.

What is the Average Size of SSDI Payments?

The monthly SSDI benefit amount is unique to each person, but the average amount for SSDI payments in January 2025 was $1,580/month.

Your payments could be lower or higher than the average for different reasons. For example, some disabilities, like blindness, automatically get more money than others. Speak with an SSDI lawyer to see if your situation qualifies for more money.

Your lawyer can also tell you more about how SSDI benefits are calculated.

Other Benefits Could Affect SSDI Calculations

Some benefits from other programs will affect your SSDI calculation. Other government benefits, such as workers’ compensation, can reduce your SSDI. In addition, you cannot get over 80% of your average income before your disability.

That includes the sum of SSDI and other related benefits. However, private disability insurance should not affect your SSDI payments. The same goes for veterans’ benefits and Supplemental Security Income (SSI).

A lawyer can give you more information about how SSDI is calculated so you can feel more confident about the benefits you receive.

What Do SSDI Benefits Come From?

Your SSDI benefits come from your “covered earnings.” When you worked, your employer deducted a portion for Social Security (FICA) taxes. The government takes a portion of a self-employed individual’s taxes for Social Security.

To qualify for SSDI, you must have earned enough work credits.

• You can typically earn one work credit for every $1,510 in earnings. Previous years would require fewer earnings per credit.
• You can earn up to four work credits per year.
• Most adults will need at least 40 work credits. 20 of those credits should come from the last 10 years before your disability.

If you worked much at all before becoming disabled, you’d likely have enough work credits. The more you have paid into Social Security, the higher your SSDI calculation will be.

Understanding your covered earnings is essential when thinking about how disability is calculated. An attorney can explain what the disability determination process looks like and answer any other questions you have.

How is SSDI Calculated for Back Pay?

Back payments, also known as “back pay,” cover the time between when your disability started and when you got approval. There is a five-month waiting period after you become disabled. After that waiting period, you are eligible for benefits beginning on the sixth whole month of disability.

Many SSDI applications take time to process. Sometimes, it can take years. After approval, you can receive back pay for the months you should have received benefits. The SSA will look at when you became disabled, subtract the waiting period, and send back pay up until your approval.

Many applicants get their back payments around 60 days after approval. However, if your disabled status started well before applying for benefits, you could receive retroactive payments for up to 12 months. A lawyer can give you more information and explain how disability benefits are calculated.

How Do You Get SSDI Benefits?

You can get SSDI benefits if you face a disabling condition that prevents you from working. You can review the most common Social Security Administration list of disabling conditions to see if you qualify. Typically, you can only get SSDI benefits if your disability stops you from earning a wage for a year or more.

These disability benefits may provide you with a monthly income based on your past earnings history. These monthly payments may last until a disabled worker can return to their career.

People with disabilities can learn more about how to calculate SSDI benefits and how to apply for these benefit payments with help from a skilled lawyer.

What Happens to SSDI Benefits at Retirement Age?

If you remain disabled until you reach retirement age, your disability benefits convert into retirement benefits automatically. In this situation, you may continue to receive monthly benefits for the rest of your life.

The specific benefits you receive every month may change over time based on cost-of-living adjustments and other factors. A lawyer can provide more information about these compensation benefits and how the federal government calculates retirement benefits.

Can You Qualify for Other SSA Benefits?

You may qualify for other types of disability benefits in some cases. For example, if your SSDI payment calculations are below a certain amount, you can qualify for Supplemental Security Income and SSDI at the same time through a concurrent claim. However, the restrictions on working are harsher for SSI payments.

You might also be eligible for this program if you have insufficient work credits before becoming disabled. Many SSA programs require payment into the system for at least 10 years to access them, but there are ways to get money if you’re injured early in life.

If you’re eligible for both programs, the calculation of the amount gets more complicated. You will need to speak with the SSA or an SSDI lawyer for advice on how to handle this situation and how future work will affect your benefits.

How are SSI Benefits Calculated?

Your SSI benefits largely depend on the amount of income you can earn. You may receive a maximum of $967 as an individual through SSI in 2025. Couples may receive up to $1,450.

The SSA will reduce the amount of SSI you receive by about $1 for every $2 you earn. The SSA can also reduce SSI payments if you receive money through a pension, unemployment payments, or disability benefits.

It’s essential that you get legal advice and specific information about Social Security disability benefits so you understand all the money available in your situation.

Can You Get Workers’ Compensation Benefits and SSDI?

In some cases, you may qualify to receive workers’ comp benefits and SSDI payments at the same time. For example, you may receive both of these benefits if you become disabled due to an accident at your job.

However, the eligibility requirements for these benefits vary, and it is not certain that you will qualify for both. An attorney can provide legal advice about all the benefits available to you after a disabling event.

Will Workers’ Compensation Benefits Affect SSDI Calculations?

Receiving workers’ comp benefits will generally affect the money you qualify to receive through SSDI. The government may reduce your SSDI benefits if you get payments through a workers’ comp program.

You can learn more about the calculation process and how these benefits impact one another with help from a lawyer.

Why You Should Hire a Lawyer to Help You

When you hire an experienced SSDI lawyer to help you, they will do more than just calculate your SSDI benefits. An attorney can:

• Gather evidence and documentation that supports your disability
• Consult with experts in various fields to support your application
• Handle all appeals and rejections on your behalf
• Represent your best interests at all times with any party involved in the application process

Getting SSDI benefits is notoriously tricky, especially if you don’t know what you’re doing or where to begin. These challenges shouldn’t discourage you from applying. If you want to get the benefits you’ve paid into all your working life, know that help is only a phone call away.

Apply for SSDI Today with Confidence

Applying for SSDI isn’t easy. However, you don’t have to spend hours reading tons of documents and sifting through legal jargon. A lawyer can help you apply with confidence by ensuring that your application gets filled out correctly and that you don’t have to worry about anything going wrong during the process.

Even if you get rejected, which happens often, don’t give up hope. An attorney can always ensure that you have the best chance for an appeal for the next round. There are many legal options available for you that you can only get if you have a strong lawyer by your side throughout the whole process.

Talk to an SSDI Lawyer During a Free Consultation Today

So, how is SSDI calculated? The SSA calculates SSDI benefits based on the time you’ve worked and your average wages.

The SSDI process is often confusing and stressful. At John Foy & Associates, we want to make the experience as simple as possible for you. We can help calculate your SSDI benefits, improve your claim, or explain how you can appeal an SSDI denial. We can explain how Social Security disability is decided and handle all legal matters for you.

Our lawyers do not charge a fee unless we win your case. Plus, the consultation is always 100% free. So, get in touch with us today, and we’ll match you with the best disability attorney for your situation. Call us or contact us online to schedule an appointment.