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Insurance Agency Valuation Calculator

Estimate an insurance agency’s value with revenue and EBITDA multiples, discounting contingent income.

How the insurance agency valuation calculator works

Agencies are commonly valued on a multiple of recurring revenue or of EBITDA. Buyers discount volatile contingent income and pay more for strong retention and growth.

Formula

Revenue value = Recurring revenue × Multiple + Contingents × Multiple × 50%. EBITDA value = Revenue × Margin × EBITDA multiple. Indicative value = average × (1 + adjustment).

How to use it

1. Enter annual revenue and EBITDA margin.
2. Enter revenue and EBITDA multiples from current deal data.
3. Enter contingent income and any quality adjustment.

Worked example

$1.8M revenue, 25% margin, 2.0× revenue and 8× EBITDA gives roughly $3.5M and $3.6M — an indicative $3.55M.

Frequently asked questions

What multiple should I use?

It depends on size, growth, retention and buyer type. Smaller agencies typically sell at lower multiples than large platforms.

Is this a formal valuation?

No — use it for planning. A transaction needs a formal valuation and deal-structure advice.

Guides

• How Insurance Commissions Work for Agents and Producers

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• Client Retention Rate Calculator — Calculate your agency’s client retention rate and the revenue lost to churn.
• Producer Commission Calculator — Calculate a producer’s commission split on new and renewal business and how much the agency retains.