Workers Compensation Calculator
Estimate workers compensation insurance premium by industry class, payroll, and experience modifier.
By Konstantin Iakovlev · Updated April 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 in 2026 starts with a reliable premium estimate, and that is what this tool produces. The underlying calculation involves shifting industry classifications and rates that make it genuinely complex, so reducing it to a few inputs gives a business a clearer financial picture and helps it stay compliant without manual guesswork.
The premium follows a single formula: (Payroll / 100) * Base Rate * Experience Modifier. Every industry class carries its own base rate per $100 of payroll, and that rate can differ from one state to the next. 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: Let's say 'ABC Construction' has an annual payroll of $500,000 for their carpentry crew (Industry Class Code '9134', assuming a base rate of $5.20 per $100 of payroll for 2026). Their experience modifier is 1.15.
- 2 Calculation: First, divide the payroll by 100: $500,000 / 100 = 5,000. Next, multiply this by the base rate: 5,000 * $5.20 = $26,000. Finally, apply the experience modifier: $26,000 * 1.15 = $29,900.
- 3 Result: Based on these inputs, 'ABC Construction's' estimated 2026 workers' compensation premium would be $29,900.
- 4 Context: This estimate represents the base premium. Additional factors like state-specific surcharges, minimum premiums, and premium discounts might further adjust the final cost. Always consult with a licensed insurance agent for an exact quote.
Source: SBA — Business Guide · Last updated: April 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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