Workers Comp Premium Calculator
Estimate your annual workers compensation insurance cost based on payroll, NCCI class codes, state, and experience modifier.
Workers Comp Premium Estimator
Formula: (Payroll ÷ 100) × Class Rate × Experience Mod
Enter total annual wages paid to employees in this job class
1.00 = average. Below 1.00 = better safety record (discount). Above 1.00 = more claims (surcharge).
How Workers Comp Premiums Are Calculated
Workers compensation insurance premiums are calculated using a standardized formula developed by NCCI (National Council on Compensation Insurance):
The Three Factors
1. Annual Payroll
The total wages paid to employees in a specific job classification. Higher payroll = higher premium.
2. Class Code Rate
A rate per $100 of payroll based on the risk level of the job. Office workers ($0.35/100) vs. roofers ($25.00/100).
3. Experience Modifier (EMR)
Adjusts your premium based on actual claims history vs. industry average. 1.00 = average. A 0.80 EMR saves you 20%.
Example Calculation
A carpentry business with $500,000 in annual payroll and an experience modifier of 1.0:
($500,000 ÷ 100) × $12.00 × 1.0 = $60,000/year ($5,000/month)
The same business with a good safety record (EMR 0.75):
($500,000 ÷ 100) × $12.00 × 0.75 = $45,000/year — saves $15,000!
Common Class Code Rates
Rate per $100 payroll, national average
See rates by state →