Insurance book of business valuation calculator

What this calculator does

It turns the multiples you enter into a dollar range, and puts the book’s weak spots next to it. A book of business is usually priced in one of two ways. The quick way is a multiple of annual commission revenue. The more careful way starts from earnings: revenue minus the cost of running the book, including a fair wage for whoever services it, times an earnings multiple.

revenue method = annual commission revenue × revenue multiple
earnings method = revenue × owner-adjusted margin × earnings multiple

The calculator doesn’t supply the multiples. We haven’t found a public source we can verify that gives current market ranges for books of a given size, and a made-up number here would look like a fact. Craig Niess, writing in IA Magazine in July 2025, describes 1.5 times revenue and later 2 times revenue as rules of thumb, and argues that a multiple of revenue “is an expression of value,” while an agency valuation “is a calculation of value.” In his example, two agencies with the same $1.5 million of revenue are worth very different amounts because one runs a 25% EBITDA margin and the other 12%.

Worked example

The starting values are an example, not a typical book. A book earning $500,000 a year in commission, tested at 1.5 to 2 times revenue, gives $750,000 to $1,000,000. At a 25% owner-adjusted margin it earns $125,000 a year. If 90% of revenue renews each year, about $364,500 is left after three years, and the earnings that pay for the purchase shrink with it: the low price takes about 8.7 years of earnings to recover, the high price about 15.3 years. With one carrier behind 35% of revenue, $175,000 depends on a single agency agreement.

What moves the multiple

• Retention. Revenue that doesn’t renew is revenue the buyer paid for and never collects. Ask how retention was measured: by policies, by accounts or by premium.
• Mix. Personal and commercial lines behave differently on retention, servicing cost and commission rates. The calculator shows the split so you can price each part on its own if your buyer does.
• Carrier concentration. A book that depends on one or two carriers depends on those appointments surviving the sale. Check whether the business can move, and whether the buyer holds the appointments.
• Earnings quality. Contingent commission varies year to year and is often treated separately from base commission. Chargebacks still to come reduce what was really earned.
• Deal terms. Earn-outs, retention guarantees and payment over time change what the headline number is worth. This calculator ignores them.

The number rests on the commission records

Whatever method a buyer uses, it starts from commission revenue, and buyers check that revenue against carrier statements. Missing renewals, unexplained chargebacks or a book that doesn’t match the statements all weaken the number in diligence. Our guides on buying a book of business and selling a book of business cover what gets checked, and book rolls covers moving a book between carriers.

Illustrative only. General information, not valuation, legal, accounting or tax advice. For a sale or purchase, work with an advisor who values agencies.

Sources

• Craig Niess, Independent Agency Valuations: Why Revenue Multiples Are Misleading, IA Magazine, July 1, 2025. Retrieved October 11, 2026.

Questions

What multiple is an insurance book of business worth?

There is no single answer, and we don’t publish one. Buyers use different methods, and the multiple depends on retention, growth, profitability, mix, carrier relationships and deal terms. An IA Magazine article from 2025 describes 1.5 and later 2 times revenue as rules of thumb, and argues they mislead. Enter the figures your advisor or buyer is discussing.

Should I value a book on revenue or on earnings?

A revenue multiple is quick but ignores what it costs to service the book. An earnings approach starts from what the book earns after expenses and a fair wage for the work, so two books with the same revenue can be worth very different amounts. The calculator shows both if you enter both.

How does retention change the value?

The calculator doesn’t change your multiple for retention. It shows how much of today’s revenue would remain after three years at your retention rate, and how long the book’s earnings would take to repay the price if they shrink at that rate.

Can I put this calculator on my website?

Yes. The page has an embed code for an iframe that keeps a visible Powered by Lapidar link. It runs in the visitor’s browser and sends nothing anywhere.

Does this calculator store or send my numbers?

No. The calculation runs in your browser. Nothing is uploaded, saved or tracked.