InjuryCalcToolsPersonal Injury Settlement Tools
Home / Articles / The per-diem method explained

The Per-Diem Method Explained

The per-diem method calculates pain and suffering by valuing each day of your recovery at a set dollar amount.

Chris Terry
By Chris Terry, Founder & Editor
Updated June 17, 2026

Estimate your claim value

Add up medical bills, lost wages, and pain and suffering in under a minute.

Open the Injury Claim Calculator →

The per-diem method assigns a dollar value to each day you suffered from your injury, then multiplies that daily rate by the total number of days between the accident and maximum medical improvement (MMI). For example: a daily rate of $250 over a 120-day recovery equals $30,000 in pain and suffering.

How to apply the per-diem method

Step 1: Choose a daily rate. A common anchor is your actual daily earnings (annual salary divided by 260 working days). Some attorneys use a flat amount, often $150 to $400 a day, calibrated to the injury's intensity. Step 2: Count recovery days from the accident date to the date your doctor says you have reached maximum medical improvement. Step 3: Multiply rate by days.

Worked example

You earn $52,000 a year. Your daily rate: $52,000 / 260 = $200 a day. Your doctor clears you after 150 days. Pain and suffering: $200 x 150 = $30,000. Added to $18,000 in medical bills and $7,500 in lost wages, your total claim estimate is $55,500.

How to justify your daily rate

Using your actual wage is straightforward and defensible because you can document it. If you use a flat rate, you need to justify it by describing concretely what each day was like: inability to sleep, dependency on others for basic tasks, missed family events, pain intensity. Courts and adjusters are skeptical of arbitrary high daily rates without supporting documentation.

Recovery days: from when to when?

The clock typically runs from the accident date to your date of maximum medical improvement, which your treating physician documents. If you have a permanent injury, the per-diem period can extend further, sometimes through your expected lifespan, which is why serious injuries can produce very large per-diem totals. Work with your attorney to establish the right endpoint.

Per-diem versus multiplier: which should you use?

Use the method that best reflects your actual experience and produces a defensible, documented number. Long recoveries with modest medical bills often favor per-diem. Short recoveries with large surgical costs often favor the multiplier. The pain and suffering calculation guide covers both methods and helps you compare results.

Estimate your claim value

Add up medical bills, lost wages, and pain and suffering in under a minute.

Open the Injury Claim Calculator →

Related reading

Good to know

FAQs

What is a good per-diem rate for pain and suffering?

Most per-diem calculations use the claimant's actual daily earnings as the anchor, which is easy to document. Flat rates typically range from $150 to $400 per day for moderate injuries. Severe injuries with intensive ongoing pain can justify higher rates, but you need strong medical and personal documentation to support them.

How do you count recovery days for the per-diem method?

Recovery days run from the accident date to the date your doctor documents maximum medical improvement (MMI). This is the point at which further significant improvement is not expected. For permanent injuries, your attorney may argue for a longer period extending well beyond MMI.

Is the per-diem method better than the multiplier method?

Neither is universally better. The per-diem can be more persuasive when you can vividly describe each day's suffering and when a long recovery produced modest medical bills. The multiplier is simpler to apply and easier for adjusters to compute quickly. Many experienced attorneys calculate both and negotiate from whichever is higher.

Can you use per-diem for emotional distress?

Yes, the same daily-rate logic can apply to documented emotional distress, especially if you have therapy records or a mental-health diagnosis tied to the accident. The key is documentation: records, a therapy provider's notes, and your own journal entries showing how the distress affected daily functioning.