Enter your last 3 complete policy years. Use total payroll and total incurred losses (paid + reserves) for each year. The calculator returns a rough experience mod estimate using a simplified formula similar to NCCI's approach.
Average rate for your class code(s) in your state. Use ~$0.30 for clerical, ~$5 for plumbing, ~$25 for roofing.
📌 Estimate only
Real experience mods are calculated by NCCI or your state rating bureau using your specific class-code-weighted expected losses, primary/excess loss splits, ballast and weighting factors, and other adjustments. This calculator gives a rough indicator — your actual mod may differ. For your real mod, request your most recent ERLR (Experience Rating Modification Worksheet) from your carrier.
What is an experience mod?
Your Experience Modification Rate (EMR or x-mod) compares your business's actual losses to the expected losses for a business of your size and class. A mod of 1.00 means average — your premium is neither discounted nor surcharged. Below 1.00 = better than average = discount. Above 1.00 = worse than average = surcharge.
A mod of 0.85 means you pay 15% less than the manual rate. A mod of 1.20 means you pay 20% more. Mods are calculated annually based on your previous 3-year claims history (excluding the most recent year).
How to lower your mod
- Implement a written safety program and document training
- Return-to-work / light-duty programs to close claims faster
- Review open reserves with your carrier — over-reserved claims inflate your mod
- Prevent small frequency claims (which hurt mods more than rare severity claims)
- Drug-free workplace certification (where applicable, often earns credits)
- Annual policy review to ensure correct class codes