When it comes to figuring out your Social Security benefits, understanding how the Social Security Administration arrives at the numbers can make all the difference. Whether you’re applying for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), knowing how your benefits are calculated gives you a clearer picture of what to expect. SSDI benefits are based on the same formula used for Social Security retirement benefits. The SSI program works differently because it’s based on financial need.
Let’s walk through how to estimate your potential benefits for both programs.
Estimating Your SSDI Benefits
SSDI benefits are calculated using a formula tied to your lifetime earnings. This means the higher your earnings were during your working years, the higher your SSDI benefits are likely to be. The Social Security Administration (SSA) determines your benefit amount in a few key steps.
Understand Your Earnings Record
The foundation of your SSDI benefit is your earnings record, which tracks your taxable income over the years. The SSA uses your highest-earning years, adjusts them for inflation, and averages them out to determine your Average Indexed Monthly Earnings (AIME). If you’ve worked less than 35 years, only the years you worked will be included, which can slightly lower the average.
Apply the Primary Insurance Amount Formula
Once the SSA calculates your AIME, it uses a standard formula called the Primary Insurance Amount (PIA) to determine your benefit. Here’s how it breaks down for 2025:
- 90% of the first $1,226 of your AIME.
- 32% of your AIME between $1,226 and $7,391.
- 15% of any amount over $7,391.
For example, if your AIME is $4,000, the calculation would look like this:
- 90% of $1,226 = $1,103.40
- 32% of $2,774 (the amount between $1,226 and $4,000) = $887.68
- 15% of $0.00 (no wages exceed $7,391) = 0
Total PIA = $1,991.08 rounded down to $1,991.00
(The SSA rounds the figure down to the next lowest $0.10)
This is your monthly benefit amount before any deductions, like Medicare premiums.
Finding Your SSDI Estimate Online
The easiest way to estimate your SSDI benefits is through your Social Security Statement. You can access this online by creating a my Social Security account at ssa.gov. Once logged in, you’ll find a detailed breakdown of your earnings history and an estimate of your SSDI benefit based on current figures.
If you want a more hands-on approach, you can calculate your estimate manually by reviewing your earnings record, adjusting for inflation, and applying the PIA formula yourself. While it takes a bit more effort, this method can give you a deeper understanding of how your benefit is calculated.
For those who prefer tools, the SSA provides online calculators, including the Disability Planner and Retirement Estimator, which help you get a reliable snapshot of your potential benefit.
SSI Benefits: A Different Approach
Unlike SSDI, SSI is a program based on financial need, not your work history. It’s designed for individuals with limited income and resources who are disabled, blind, or aged 65 or older. Because of this, SSI benefits aren’t tied to your earnings record but instead follow a separate set of rules.
Federal Benefit Rate (FBR)
The maximum SSI benefit is set each year by the federal government. For 2025, the Federal Benefit Rate (FBR) is $968 per month for individuals and $1,459 for couples. This represents the maximum amount you can receive, but your actual payment may be lower depending on your income.
Countable Income
SSI benefits are reduced by your countable income, which includes wages, certain disability benefits, and other forms of income. However, some exclusions apply:
- The first $20 of most income each month is excluded.
- The first $65 of earned income is excluded,
- half of any additional earned income.
For example, if you earn $200 in a month, the first $65 is excluded, leaving $135. Half of that ($67.50) counts against your SSI benefit. In this case, your SSI payment would be reduced by $67.50.
State Supplements
Some states provide additional SSI payments on top of the federal benefit. These state supplements vary depending on where you live. For example, states like California and New York often offer higher supplements, which can significantly increase your total monthly payment. To find out if your state offers a supplement, check with your local SSA office.
Steps to Estimate Your SSI Payment
If you’re applying for SSI, start by reviewing your income and resources. Subtract the applicable exclusions from your total income, then compare the result to the Federal Benefit Rate. Keep in mind that the SSA also considers your resources, like as savings accounts, vehicles, and other assets. Generally, you must have $2,000 or less in countable resources ($3,000 for couples) to qualify for SSI.
To estimate your benefit:
- Determine your total income.
- Apply the income exclusions.
- Subtract the remaining income from the FBR to calculate your monthly payment.
If your state offers a supplement, factor that in as well.
How National Disability Experts Can Help
Applying for Social Security benefits can feel overwhelming, especially when trying to figure out your eligibility and potential payment. National Disability Experts has years of experience helping individuals apply for and win SSDI and SSI claims. From reviewing your earnings record to preparing the necessary documentation, we provide the guidance and support you need throughout the process. Having someone in your corner who knows the system can make applying easier and increase your chances of success.
Do You Have Questions About Your Disability Benefits Amount?
National Disability Experts is here to help. Our focus is on helping people like you secure the benefits they need and deserve. Take the first step today and get the support you need for a successful outcome.