{
  "slug": "workers-comp-premium-calculator",
  "title": "Workers Comp Premium Calculator",
  "heading": "Workers' Compensation Premium Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/workers-comp-premium-calculator",
  "summary": "Payroll, class rate, and experience modifier turned into an annual premium.",
  "description": "Workers' compensation premium is one of the few insurance costs with a transparent formula: payroll per hundred dollars, multiplied by a class code rate published for your state, multiplied by your experience modification factor, then adjusted by carrier-specific discounts and expense constants. This calculator runs that formula for up to three payroll classes so a business with office staff and field crews can see how the mix drives the bill. The experience modifier is the lever most owners underuse — it compares your claim history to the average for your class, so a mod of 0.85 cuts 15% off the manual premium while a 1.25 adds a quarter, and it follows the business for three years. The output also shows premium as a share of payroll and the annual saving from moving the mod down by a tenth, which is usually the clearest way to justify spending on safety programmes and prompt claim management.",
  "formula": "Premium = Σ (Payroll ÷ 100 × Class Rate) × Experience Mod × (1 − Discount) + Expense Constant.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=workers-comp-premium-calculator",
  "inputs": [
    {
      "id": "payroll1",
      "label": "Class 1 payroll",
      "kind": "number",
      "hint": null,
      "default": 300000,
      "unit": "$",
      "min": 0,
      "max": 20000000
    },
    {
      "id": "rate1",
      "label": "Class 1 rate per $100 payroll",
      "kind": "number",
      "hint": null,
      "default": 6.5,
      "unit": "$",
      "min": 0.05,
      "max": 60
    },
    {
      "id": "payroll2",
      "label": "Class 2 payroll",
      "kind": "number",
      "hint": null,
      "default": 120000,
      "unit": "$",
      "min": 0,
      "max": 20000000
    },
    {
      "id": "rate2",
      "label": "Class 2 rate per $100 payroll",
      "kind": "number",
      "hint": null,
      "default": 0.35,
      "unit": "$",
      "min": 0,
      "max": 60
    },
    {
      "id": "payroll3",
      "label": "Class 3 payroll",
      "kind": "number",
      "hint": null,
      "default": 0,
      "unit": "$",
      "min": 0,
      "max": 20000000
    },
    {
      "id": "rate3",
      "label": "Class 3 rate per $100 payroll",
      "kind": "number",
      "hint": null,
      "default": 0,
      "unit": "$",
      "min": 0,
      "max": 60
    },
    {
      "id": "mod",
      "label": "Experience modification factor",
      "kind": "number",
      "hint": null,
      "default": 1,
      "unit": "×",
      "min": 0.5,
      "max": 2
    },
    {
      "id": "discount",
      "label": "Scheduled / premium discount",
      "kind": "number",
      "hint": null,
      "default": 5,
      "unit": "%",
      "min": 0,
      "max": 40
    },
    {
      "id": "expenseConstant",
      "label": "Expense constant",
      "kind": "number",
      "hint": null,
      "default": 250,
      "unit": "$",
      "min": 0,
      "max": 2000
    }
  ],
  "outputs": [
    {
      "id": "annual",
      "label": "Estimated annual premium",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "monthly",
      "label": "Per month",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "manual",
      "label": "Manual premium before mod",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "modified",
      "label": "After experience modifier",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "pctOfPayroll",
      "label": "Premium as share of payroll",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "modSaving",
      "label": "Saving per 0.10 mod improvement",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Class 1 payroll: 300000 $",
      "Class 1 rate per $100 payroll: 6.5 $",
      "Class 2 payroll: 120000 $",
      "Class 2 rate per $100 payroll: 0.35 $",
      "Class 3 payroll: 0 $",
      "Class 3 rate per $100 payroll: 0 $",
      "Experience modification factor: 1 ×",
      "Scheduled / premium discount: 5 %",
      "Expense constant: 250 $"
    ],
    "outputs": [
      "Estimated annual premium: $19,174",
      "Per month: $1,598",
      "Manual premium before mod: $19,920",
      "After experience modifier: $19,920",
      "Premium as share of payroll: 4.57%",
      "Saving per 0.10 mod improvement: $1,892"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter class 1 payroll ($).",
      "Enter class 1 rate per $100 payroll ($).",
      "Enter class 2 payroll ($).",
      "Enter class 2 rate per $100 payroll ($).",
      "Enter class 3 payroll ($).",
      "Enter class 3 rate per $100 payroll ($).",
      "Enter experience modification factor (×).",
      "Enter scheduled / premium discount (%).",
      "Enter expense constant ($).",
      "Read your estimated annual premium on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "payroll1": 180000,
        "rate1": 3.9,
        "payroll2": 70000,
        "rate2": 0.21,
        "payroll3": 0,
        "rate3": 0,
        "mod": 0.6,
        "discount": 3,
        "expenseConstant": 150
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "payroll1": 300000,
        "rate1": 6.5,
        "payroll2": 120000,
        "rate2": 0.35,
        "payroll3": 0,
        "rate3": 0,
        "mod": 1,
        "discount": 5,
        "expenseConstant": 250
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "payroll1": 480000,
        "rate1": 10.4,
        "payroll2": 190000,
        "rate2": 0.5599999999999999,
        "payroll3": 0,
        "rate3": 0,
        "mod": 1.6,
        "discount": 8,
        "expenseConstant": 400
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Where do I find my class code rate?",
      "a": "State rating bureaus (or NCCI in most states) publish loss costs by class code, and your carrier applies its own multiplier. Your policy declarations page lists the codes and rates currently applied to your payroll."
    },
    {
      "q": "How is the experience mod calculated?",
      "a": "It compares your actual losses over a three-year window against expected losses for your payroll and class. Frequency of small claims hurts more than a single large one in most formulas, which is why prompt return-to-work programmes pay off."
    },
    {
      "q": "Do owners and officers count in payroll?",
      "a": "It depends on the state and entity type. Many states let owners exclude themselves, and most cap included officer payroll at a statutory maximum. Excluding yourself can cut premium substantially but removes your own coverage."
    },
    {
      "q": "Is overtime included at full value?",
      "a": "Usually only the straight-time portion of overtime counts, so paying overtime is often cheaper than the raw payroll figure suggests. Ask your auditor how they treat it before the year-end audit."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/business-liability-insurance-cost-calculator",
    "https://www.revenuelab.fyi/toolbox/workers-comp-ppd-settlement-calculator"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Workers Comp Premium Calculator (https://www.revenuelab.fyi/toolbox/workers-comp-premium-calculator)"
}