Calculator inputs
Example data table
| Scenario | Classes | Payroll | Avg rate / $100 | E-mod | Estimated premium |
|---|---|---|---|---|---|
| Office + outside sales | 8810, 8742 | $300,000 | 0.29 | 0.95 | $820.56 |
| Light manufacturing | 3632 | $600,000 | 1.45 | 1.10 | $9,812.10 |
| Contracting | 5474, 8810 | $900,000 | 6.10 | 1.25 | $73,406.25 |
Formula used
Manual premium (per class): (Payroll ÷ 100) × Rate
Manual premium (total): Sum of all class manual premiums
Modified premium (pre-fees): Manual × E-mod × (1 + Schedule%/100) × (1 − Safety%/100) × (1 − Deductible%/100)
Final estimated premium: max( Modified × (1 + Assessment%/100) × (1 + Fee%/100), Minimum Premium )
Effective rate per $100: Final ÷ (Total Payroll ÷ 100)
How to use this calculator
- Add one or more class rows with annual payroll and the rate per $100.
- Enter your experience mod and any schedule credit/debit adjustments.
- Apply discounts or deductible credits if they apply to your program.
- Add assessment and fee percentages, plus any minimum premium floor.
- Click Calculate premium to see results above the form.
- Use the CSV or PDF buttons to export the latest result.
Payroll and class rates drive manual premium
Workers compensation pricing starts with manual premium: payroll divided by 100, multiplied by the class rate. If payroll is $250,000 at a $1.20 rate, manual premium equals $3,000. Splitting payroll into accurate class codes reduces audit surprises. A 0.10 rate change on $500,000 payroll shifts premium by $500. Keeping office, sales, and field labor separated can change the blended rate.
Experience modification changes the baseline
The experience modification factor reflects loss history versus peers. An e-mod of 0.90 reduces manual premium by 10%, while 1.25 increases it by 25%. On a $40,000 manual premium, that swing is $14,000. Many employers receive updated mods annually, so comparing scenarios before renewal supports better budgeting. Moving from 1.05 to 0.95 on $60,000 manual premium saves $6,000.
Credits, debits, and deductible options matter
Schedule credits or debits commonly fall between -25% and +25%, depending on controls, training, and housekeeping. Safety discounts and deductible credits can further reduce costs when available. Example: applying a -5% schedule credit and a 3% safety discount to $20,000 after e-mod yields $18,430 before assessments. A 10% deductible credit on a $30,000 premium reduces it by $3,000 before fees.
Assessments, fees, and minimum premiums finish the math
State assessments are typically small percentages added after modifiers. A 2% assessment and 1% fee applied to $18,430 produces $18,986.59. Minimum premiums can override calculated totals for very small payrolls, so review both the computed premium and any floor amount required. If your assessment is 0.5%, a $100,000 premium adds $500.
Use effective rate per $100 to compare scenarios
The effective rate per $100 shows what you pay after modifiers and fees. If the final premium is $18,986.59 on $650,000 payroll, the effective rate is $2.92 per $100. Track this metric across scenarios to see where improvements matter most, such as lowering e-mod, improving safety controls, or correcting classifications. When payroll rises 12% and the rate holds, premium tends to rise about 12% before modifier changes.
FAQs
What does “rate per $100” mean?
It is the premium charge for each $100 of payroll in a class code. Multiply payroll/100 by the rate to estimate manual premium.
Should I combine payroll for different classes?
No. Separate payroll by class code whenever possible. Mixing office and field payroll can distort the blended rate and increase audit adjustments later.
What is an experience mod (e-mod)?
It is a multiplier based on your loss experience versus similar employers. Values below 1.00 reduce premium, and values above 1.00 increase premium.
How do schedule credits and safety discounts differ?
Schedule credits are underwriter adjustments for controls and exposure quality. Safety discounts are program-based reductions for formal safety practices, when offered.
Why might the audited premium differ from my estimate?
Audits can change payroll amounts, job classifications, and included remuneration. Even small changes in payroll allocation can shift premium when rates differ by class.
Does this calculator replace a carrier quote?
No. It is a planning tool for comparisons. Carrier filings, exclusions, minimums, and underwriting decisions can change the billed premium.