Workers Compensation Calculator
Estimate workers compensation insurance premium by industry class, payroll, and experience modifier.
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
Our 2026 Workers' Compensation Calculator helps businesses estimate their insurance premiums quickly and accurately. Understanding these costs is crucial for budgeting and maintaining compliance, especially with evolving industry classifications and rates. This tool simplifies a complex calculation, providing a clearer financial picture for your business.
The premium is calculated using the formula: (Payroll / 100) * Base Rate * Experience Modifier. Each industry class has a specific base rate per $100 of payroll, which can vary by state. The experience modifier then adjusts this base premium based on your company's past claims history.
A common mistake is using outdated payroll figures; always ensure your payroll reflects current projections for the policy period. Also, incorrectly classifying employees can lead to significant premium discrepancies. Regularly review your experience modifier, as a higher modifier indicates a greater claims history and thus higher premiums.
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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