Calculator Inputs
Example Data Table
Sample scenarios for quick benchmarking.
| Scenario | Payroll | Rate / $100 | ExMod | Est. Annual |
|---|---|---|---|---|
| Office Services | $150,000 | $0.45 | 0.92 | $621.00 |
| Retail Store | $300,000 | $1.25 | 1.05 | $4,134.38 |
| Light Manufacturing | $600,000 | $3.10 | 1.18 | $22,030.56 |
| Construction | $900,000 | $7.85 | 1.35 | $95,496.38 |
Formula Used
Manual Premium = (Payroll ÷ 100) × Class Rate
Modified Premium = Manual Premium × Experience Mod × (1 + Schedule Mod%)
Credits apply multiplicatively: × (1 − Safety%) × (1 − Drug-Free%) × (1 − Claim-Free%) × (1 − Deductible Credit%)
Fees = Premium × (1 + State% + Terrorism% + Catastrophe%) + Expense Constant
Minimum enforces a floor if configured.
How to Use This Calculator
- Enter annual payroll and the class rate per $100 of payroll.
- Set your experience modifier and any schedule credit or debit.
- Add discounts, credits, and the employer liability factor.
- Enter assessments and fixed fees, then calculate.
- Review the breakdown, graph, and export options.
Rating Inputs That Drive Premium Accuracy
Workers comp pricing starts with payroll and class codes. This calculator accepts multiple class rows and annualizes monthly payroll automatically. A 10% payroll change moves manual premium by the same 10%, because manual premium is linear: Σ((payroll ÷ 100) × rate). Use current payroll projections, not last year’s totals.
How Modifiers Translate Into Dollars
The experience modifier (ExMod) scales the manual premium based on loss history. For example, a $20,000 manual premium with a 1.10 ExMod becomes $22,000 before schedule adjustments. A schedule credit of −5% reduces that to $20,900. Discounts and credits then apply multiplicatively, which prevents overstating combined savings.
Fees, Assessments, And Common Flat Charges
State assessments, terrorism, and catastrophe charges are modeled as percentages on premium. Flat charges like an expense constant, installment fee, or broker fee are added after percentage fees. If your jurisdiction uses special funds or surcharges, enter them into the assessment fields to keep estimates aligned with billing.
Scenario Testing With Class Mix And Factors
Many employers have mixed operations. Splitting payroll across office, retail, and field classes improves the estimate because each rate is different. State factor and assigned risk factor let you stress-test pricing when expanding into a new territory or moving into a different market tier. Apply rounding to mirror budgeting practices.
Using Results For Budgeting And Renewal Planning
The breakdown and chart show which levers matter most. Improve safety practices to target sustainable ExMod reductions over time, and evaluate deductible credits against expected claims frequency. Export CSV for internal review and generate a PDF summary for stakeholders during renewal meetings.
FAQs
1) Is this an exact quote?
No. It is a planning estimate using common rating steps. Actual premiums depend on filings, audits, carrier rules, and jurisdictional assessments.
2) Should I enter annual or monthly payroll?
Either works. Select the payroll basis first. Monthly payroll entries are automatically annualized before rates and modifiers are applied.
3) Why do discounts apply multiplicatively?
Multiplicative credits prevent double-counting. Each discount reduces the remaining premium, which matches how many rating plans stack credits.
4) What is the experience modifier range?
Many employers fall between 0.70 and 1.50, but it can be lower or higher. Use your official ExMod from your rating bureau or insurer.
5) What happens if minimum premium is set?
The calculator will not allow the final annual premium to drop below your minimum premium value, even if credits and discounts reduce the estimate.
6) How should I use multiple class codes?
Add one row per class, then allocate payroll realistically. This improves accuracy for mixed operations where rates vary significantly.