Workers Compensation Calculator
Estimate workers compensation insurance premium by industry class, payroll, and experience modifier.
By Konstantin Iakovlev · Updated September 2026 · Source: SBA — Business Guide
Estimated Annual Premium
$1,500.00
Monthly Cost
$125.00
Rate Per $100 Payroll
$0.30
Premium Calculation
| Annual Payroll | $500,000.00 |
| Base Rate (per $100) | $0.30 |
| Experience Modifier | 1.00 |
| Effective Rate (per $100) | $0.30 |
| Annual Premium | $1,500.00 |
| Monthly Cost | $125.00 |
Industry Comparison
| Industry | Rate/$100 | Est. Premium |
|---|---|---|
| Office / Clerical | $0.30 | $1,500.00 |
| Retail / Sales | $1.50 | $7,500.00 |
| Restaurant / Food Service | $2.00 | $10,000.00 |
| Manufacturing | $3.50 | $17,500.00 |
| Construction | $8.00 | $40,000.00 |
Base rates are approximate national averages. Actual rates vary significantly by state, specific class code, and insurer. Contact your insurance provider for exact quotes.
Use the Workers Compensation Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Budgeting for workers' compensation starts with a premium estimate, and that is what this tool produces. Real premiums depend on detailed job classifications and state-approved rates, so reducing them to a few inputs gives a business a first planning figure, not a quote.
The premium follows a single formula: (Payroll / 100) * Base Rate * Experience Modifier. Insurers price each class code at its own rate per $100 of payroll, and rates differ from one state to the next; the calculator stands in for them with five broad groups at approximate national rates: $0.30 for office/clerical, $1.50 retail, $2.00 restaurant, $3.50 manufacturing and $8.00 construction. The experience modifier then scales the base premium up or down according to your company's history of past claims.
Stale payroll figures are a frequent source of error, so the number you enter should reflect projected payroll for the actual policy period rather than last year's totals. Misclassifying employees throws the result off just as badly and can produce large premium swings. Because a rising experience modifier signals a heavier claims history and pushes premiums upward, it is worth reviewing periodically to understand where your costs are headed.
Example: Construction Company Premium Estimate
- 1 Input: 'ABC Construction' has $500,000 of annual payroll, picks the Construction group (built-in rate $8.00 per $100 of payroll) and has an experience modifier of 1.15.
- 2 Calculation: $500,000 / 100 = 5,000 units of $100 payroll. 5,000 × $8.00 = $40,000 base premium. $40,000 × 1.15 = $46,000.
- 3 Result: an estimated $46,000 a year, or $3,833.33 a month, an effective $9.20 per $100 of payroll.
- 4 Context: $8.00 is the calculator's rough figure for the whole construction group. A carpentry or roofing class code in your state can be well above or below it, and state surcharges, minimum premiums and premium discounts adjust the final bill, so get an exact quote from a licensed agent.
Source: SBA — Business Guide · Last updated: September 2026
Frequently Asked Questions
How is workers comp premium calculated?
What is an experience modification rate?
Is workers comp insurance required?
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