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Insurance commission calculator
Premium times rate, for new business and for renewals, and what’s left for the agency after the producer’s share. Put in the numbers from your own agreements.
| Item | New | Renewal |
|---|---|---|
| Carrier rate | 15.00% | 12.00% |
| Agency commission | $360.00 | $288.00 |
| Producer’s share | $144.00 | $57.60 |
| Agency keeps | $216.00 | $230.40 |
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How the calculation works
In property and casualty insurance, agency commission is the premium multiplied by the commission rate the carrier pays for that kind of transaction. A $2,400 annual premium at 15% is $360.00. The rate comes from your agency agreement or the carrier’s commission schedule, and it can differ by line of business, by state and by program, so use the rate for the policy you’re looking at.
commission = premium × carrier rate
producer share = commission × producer %
agency keeps = commission − producer share
New business and renewal rates
Many agency agreements set one rate for new business and another for renewals. Sometimes the renewal rate is lower, sometimes it’s the same, and sometimes it changes after a set number of renewals. The calculator shows both side by side so you can see what the same premium is worth in each case. If your carrier pays one flat rate, enter it twice.
Splitting commission with a producer
If producers are paid on commission, their share is set by the producer agreement, not by the carrier. This calculator takes the producer’s percentage of the commission the agency receives. Some agencies pay a percentage of premium instead, pay only after the carrier has paid, or use different splits for house accounts and accounts the producer brought in. Adjust the inputs to match, or treat the result as a rough guide.
What this calculator leaves out
- Contingent or profit-sharing commission and bonuses, which depend on results across a book.
- Policy fees, broker fees, taxes and surplus lines charges, which usually carry no commission.
- Timing: on direct bill, commission on installment policies often arrives as the insured pays.
- Endorsements, audits and cancellations during the term. For those, use the chargeback calculator.
Using the number to check a statement
The figure you calculate here is one expected commission. Comparing it with what the carrier actually paid is a different job. Reconciling real statements across carriers is the hard part: dozens of formats, PDFs, policy numbers that don’t match, and chargebacks that land months later. A calculator only gives you one expected number. Lapidar, which we’re building for the full job, is in development and not available yet. Join the early-access list.
Illustrative only. This is general information, not accounting, legal or tax advice. Your agency agreement and producer agreements govern what is owed.
Questions
How do I calculate insurance commission?
Multiply the premium by the commission rate in your agency agreement. A $2,400 premium at 15% is $360.00 of commission. Use the rate for the right transaction type, because many agreements pay a different rate on new business and on renewals.
Are renewal commission rates always lower than new business rates?
No. Some carriers pay the same rate on both, some pay more on new business, and rates often differ by line of business and state. The only reliable source is your agency agreement or the carrier’s commission schedule.
Is a producer split calculated on premium or on commission?
It depends on the producer agreement. This calculator applies the producer’s share to the commission the agency receives, which is one common arrangement. If your agreement pays producers a percentage of premium, or only once the carrier has paid, the numbers will differ.
Does this calculator store or send my numbers?
No. The calculation runs in your browser. Nothing is uploaded, saved or tracked, and the page makes no network requests after it loads.