Insurance agency KPI calculator

The formulas

Each formula is the working definition from our guide to insurance agency KPIs. Adjust it to your books if you must, then keep it fixed, so the trend means something. One difference: the guide prefers retention weighted by commission; the calculator counts policies, the simpler version the guide also gives.

organic growth = (revenue this year − acquired − contingent) ÷ (revenue last year − contingent) − 1
revenue per employee = net revenue ÷ full-time equivalent staff
carrier concentration = largest carrier’s commission ÷ total commission
new vs renewal mix = new business commission ÷ total commission
retention rate = policies renewed ÷ policies up for renewal
EBITDA margin = EBITDA ÷ net revenue
commission accuracy = commission received ÷ commission expected

In the example, this year’s $1,850,000 less $60,000 acquired and $45,000 contingent is $1,745,000; last year’s $1,700,000 less $40,000 contingent is $1,660,000. Organic growth is 5.1%. Each KPI needs only its own inputs; leave the rest blank and the calculator skips them.

Organic growth

Organic growth is the change in commission and fee revenue from one year to the next, after removing revenue from acquired books and, usually, contingent commission. It mixes new business, retention and rate: in a rising market a book can grow organically while losing clients, so read it next to retention and the new business mix.

Carrier concentration and the revenue mix

Carrier concentration is the share of commission that comes from your largest carrier. A high share means one carrier’s decision, a commission rate change or the end of an appointment, moves the whole agency. The new vs renewal mix shows how dependent growth is on new sales; because many schedules pay different rates on new and renewal terms (see new business vs renewal commission), a shift in the mix can look like a rate change on the statements.

Retention

The calculator uses the simplest version: policies renewed divided by policies that came up for renewal, here (2,400 − 240) ÷ 2,400 = 90.0%. A version weighted by commission is often more useful, because one large commercial account outweighs several personal auto policies; the guide explains it, and the client retention value calculator puts a dollar figure on one more point. Count policies in force the same way each period.

Commission accuracy

Commission accuracy is commission received divided by commission expected, where expected means premium times the rate in your commission schedule for every policy that should have paid. The companion figure is the variance found in reconciliation, in dollars. In the example, a $1,265 shortfall on $41,380 expected is 96.9%. The figure only exists if statements are checked line by line against the book, and every other KPI on this page is built on the same commission revenue, so a gap here moves all of them.

About the reference ranges

We show only two, both from the Big “I” and Reagan Consulting Best Practices Study 2026 update (Big “I”, August 12, 2026): organic growth rates ranging from 6.2% to 10.2% and pro forma EBITDA margins ranging from 23.2% to 30.7%, across revenue categories. The study covers agencies selected as Best Practices agencies for outstanding management and financial results, so the ranges describe high performers, not the typical agency; compare yourself with your revenue category in the full study. We found no recent public benchmark we could verify for retention, revenue per employee, carrier concentration or new business mix, so the calculator shows none and makes no judgment on any figure.

Illustrative only. General information, not accounting, valuation or financial advice. Reference ranges quoted from the Big “I” announcement of August 12, 2026, as cited in our KPI guide.

Questions

How do you calculate organic growth for an insurance agency?

Take this year’s commission and fee revenue less revenue from acquired books and contingent commission, divide by last year’s revenue less contingent commission, and subtract one. $1,745,000 against $1,660,000 is 5.1% organic growth.

How do you calculate revenue per employee in an insurance agency?

Net revenue divided by full-time equivalent staff, counting part-time staff by hours and, in many definitions, owners who work in the business. $1,850,000 over 12 FTE is about $154,167.

What is carrier concentration?

The share of commission that comes from your largest carrier: its commission divided by total commission. It shows how far one carrier’s decision can move the whole agency.

What is a good organic growth rate for an insurance agency?

The Big “I”/Reagan Consulting 2026 Best Practices Study update reports organic growth rates ranging from 6.2% to 10.2% across revenue categories for selected high-performing agencies. Those are not averages for all agencies.

Why are there no benchmarks for retention or revenue per employee?

We found no recent public benchmark we could verify for retention, revenue per employee, carrier concentration or new business mix, so we don’t show one.

What is commission accuracy?

Commission received divided by commission expected from your schedules, per carrier and month, together with the dollars of missing, underpaid and duplicate commission found when statements are reconciled against the book.

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.