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Workers' Comp Cost Calculator

Workers' comp premium estimated from payroll and class code rate.

Details

Annual payroll ($)

Class risk

Experience mod (1.0 = average)

Results

Estimated workers' comp premium,

Rate per $100 payroll,

Monthly,

Treat this as a starting point, carriers underwrite differently.

By Jessica Martinez
Contributing Writer, Business & Finance, Encore Editorial

The short answer

Clerical staff cost cents per $100 of payroll to insure. Roofers and other high-hazard trades can run several dollars per $100. The gap between those two numbers is almost entirely about the work itself, not the company running it.

Figures this estimator uses

The calculator has four class-risk rates coded in, each a flat rate per $100 of payroll before the experience mod is applied. These are the 2026 figures behind the dropdown above.

Class	Rate per $100 payroll
Clerical / office	$0.50
Retail / light	$1.20
Trades	$2.50
Construction / roofing	$4.50
Experience mod default	1.0 (below 1.0 is a credit, above is a debit)

How the math works

Take annual payroll, divide by 100, multiply by the class code rate for the work your employees do, then multiply by your experience modifier. There is no floor or cap in this formula, unlike some of the other calculators on this site.

Class code drives most of the cost: office work costs cents per $100 of payroll; roofing costs dollars.

Things to know

Multiple class codes on one payroll, an office plus a warehouse crew for example, get split and rated separately in a real policy.
Your experience mod is recalculated annually by your state's rating bureau, not by your carrier directly.
Audits at the end of the policy year true up your premium against actual payroll, so keep good payroll records.

See how this fits your other coverage

Workers' comp is usually one piece of a larger insurance picture. Check the general liability and business owner's policy calculators for the rest.

See all calculators

Good to know

FAQ

What happens if I misclassify an employee's job as clerical when it isn't?

An audit can reclassify the payroll at the correct, higher-risk class code and bill you for the difference retroactively. Classify roles by the work actually performed, not the job title.

Do owners have to carry workers' comp on themselves?

It depends on the state and business structure. Some let sole owners opt out while others require coverage once there is even one employee, so check your specific state's rule.

Can a single serious claim raise my rate for years?

Yes. One large claim can push your experience modifier above 1.0 for roughly three years, raising premiums at every renewal during that window even if no new claims occur.

Does overtime pay count toward the payroll figure?

Usually only at straight-time value. Most states let you exclude the extra half of overtime pay from the payroll used to calculate premium, but check your state's specific rule.