Calculator Inputs
Example Data Table
| Scenario | Employees | Incident rate | Incident cost | Premium | Program cost/emp | Reduction | Hours saved | Wage |
|---|---|---|---|---|---|---|---|---|
| Example | 50 | 6.00 | 8500 | 42000 | 60 | 25% | 2.50 | 22 |
| Smaller team | 18 | 5.00 | 7000 | 14000 | 55 | 20% | 2.00 | 18 |
| Higher-risk | 120 | 10.00 | 12000 | 98000 | 70 | 30% | 3.00 | 27 |
Formula Used
Total After = Incident Cost After + Premium After + Program Cost − Productivity Value
Net Savings = (Total Before − Total After) × Years
ROI % = Net Savings ÷ (Program Cost × Years) × 100
How to Use This Calculator
- Enter your employee count and current incident rate.
- Add the typical cost per incident and annual premium.
- Estimate program cost, discount, and incident reduction.
- Optionally value time savings using wage and hours saved.
- Press Calculate to view totals, ROI, payback, and the graph.
- Download CSV for spreadsheets and PDF for sharing.
Workplace Risk Cost Baseline
Start with a full cost baseline, not only claim frequency. This calculator estimates expected incidents from employees and an incident rate per 100 workers, then converts that volume into dollars using your average cost per incident. It adds workers’ compensation premium, property damage, absence cost, and turnover replacement cost to form a single annual “before” total. That baseline helps budgeting conversations and shows where prevention can outperform reactive spending. Keep inputs consistent with your internal loss reports.
Program Cost Structure and Testing
Program spend is modeled in layers for transparent review. Variable cost per employee covers training, policy communication, supervisor coaching, and compliance time. Fixed annual cost represents administration and reporting. Testing cost is calculated from cost per test and tests per employee, supporting different screening strategies. A one‑time setup cost accounts for rollout work such as onboarding and initial coordination with providers.
Impact Modeling With Ramp and Inflation
Effectiveness rarely arrives on day one. The year‑one ramp percentage reduces incident reduction, premium discount, and other reductions during the first year, then assumes full effectiveness afterward. Inflation increases both costs and benefits over time, supporting realistic multi‑year planning and reducing the risk of overstating early gains while adoption is still underway. Use conservative ramps when implementation is phased.
NPV, ROI, and Payback Decisions
Net savings equal total “before” cost minus total “after” cost across the horizon. NPV discounts each year’s savings using your discount rate to reflect the time value of money. ROI compares total net savings to total program cost, helping benchmark against other initiatives. Payback is shown as the first year when cumulative savings, and cumulative NPV, become positive.
Sensitivity and Scenario Planning
Use scenarios to stress-test assumptions before committing budget. Increase incident reduction or premium discount to represent stronger compliance and insurer recognition. Adjust turnover and absence reductions to reflect stability improvements. On the cost side, raise testing frequency, setup cost, or fixed administration to model conservative procurement. The annual and cumulative plots make tradeoffs visible for stakeholders and support faster approvals. Export CSV to document scenarios for board packets and quarterly performance reviews.
FAQs
What does this calculator measure?
It estimates the financial impact of a drug-free workplace program by comparing “before” and “after” totals for incidents, insurance premium, turnover, absence, and property damage, including program and testing costs.
How should I choose an incident reduction percent?
Use your historical trend data, pilot results, or a conservative management estimate. If you are unsure, run three scenarios: conservative, expected, and optimistic, then compare ROI and NPV across them.
Why are inflation and discount rate included?
Inflation projects how costs and benefits grow over time. The discount rate converts future savings into today’s dollars for NPV, helping finance teams compare this initiative to other investments.
What is the year-one ramp for?
Ramp models slower first-year adoption, training, and compliance. It scales down savings and discounts in year one, then assumes full effectiveness in later years, which prevents overly aggressive early savings.
Should I include productivity benefits?
Include it if you can reasonably value time savings, reduced disruptions, or fewer rework hours. If you prefer a strict cost-only view, uncheck productivity and focus on incidents, premiums, and hard costs.
How can I share results with stakeholders?
Use the PDF export for a clean summary with charts and the yearly table. Use CSV export for spreadsheet analysis, scenario tracking, and documenting assumptions during procurement and budgeting reviews.