Workers' Compensation Insurance Cost Calculator for 2026 Premiums

Estimate your workers' compensation premium from payroll, class code rate, and experience modifier using the standard industry formula.

Mathematical Audit

How Workers' Compensation Premium Is Calculated

Workers' comp premiums are priced per $100 of payroll, multiplied by a state-approved class code rate and adjusted by your experience modification rating (EMR).

Base Premium = (Annual Payroll ÷ 100) × Class Code Rate × Experience Modifier
Adjusted Premium = Base Premium × (1 − Premium Discount %)
Cost Per Employee = Adjusted Premium ÷ Number of Employees
EMR Impact = (Annual Payroll ÷ 100) × Class Code Rate × (Experience Modifier − 1)

An experience modifier (EMR) of 1.0 is average for your industry. Below 1.0 lowers your premium versus peers with the same claims-free record; above 1.0 raises it. Class code rates vary enormously by job risk, from around $0.20 per $100 for office work to $15-25 per $100 for high-risk trades like roofing.

Operational Guide

How to Use the Workers' Compensation Insurance Cost Calculator

1

Enter your annual payroll

Use total gross payroll for employees covered under this policy, typically capped per employee per state rules.

2

Enter your class code rate

Find the state-approved rate per $100 of payroll for your primary job classification from your carrier or state rating bureau.

3

Enter your experience modifier

Use your current EMR from your loss run or renewal paperwork; 1.0 means average claims history.

4

Add any premium discount

Include schedule credits, safety program discounts, or dividend plan adjustments as a percentage.

5

Review your estimated premium

See your base premium, adjusted premium, and cost per employee to budget for renewal.

Real-World Scenario Example

"A business with $500,000 in annual payroll, a class rate of $1.50 per $100, an experience modifier of 0.90, and a 5% schedule credit across 20 employees."

Inputs

annualPayroll:500000
classRatePerHundred:1.5
experienceModifier:0.9
premiumDiscountPercent:5
numberOfEmployees:20

Result

Base premium of $6,750, adjusted premium of about $6,412, or roughly $321 per employee.

Important Disclaimer

These estimates are for educational and planning purposes only and do not constitute an insurance quote. Actual premiums depend on your state, carrier, job classifications, and underwriting review.

Internal Linking

Related Calculators

Business

Employer Payroll Tax Burden (FICA/FUTA/SUTA) Calculator

Calculate your 2026 employer payroll tax burden across FICA, FUTA, and SUTA taxes.

Try it free
Business

Overtime Cost & Labor Burden Rate Calculator

Calculate FLSA overtime pay and your true fully burdened labor cost per hour.

Try it free
Business

Staffing Agency Markup & Bill Rate Calculator

Calculate staffing agency bill rates, markup percentage, and gross and net profit margin.

Try it free
E-E-A-T Genuineness

Sources & References

ADP — How Is Workers' Comp Calculated?

https://www.adp.com/resources/articles-and-insights/articles/h/how-is-workers-comp-calculated.aspx

NCCI — ABCs of Experience Rating

https://www.ncci.com/Articles/Pages/UW_ABCsofExperienceRating.aspx