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Insurance Commission Calculator

Calculate insurance agent commission on a policy premium, net premium due to the carrier, and annual commission.

How the insurance commission calculator works

Agents are paid a percentage of the premium. Fees and taxes are normally non-commissionable. This calculator gives the commission, the net amount due to the carrier on agency-billed business, and an annualized figure.

Formula

Commission = Premium × Commission rate. Net to carrier = Premium + Fees − Commission.

How to use it

1. Enter the premium and commission rate.
2. Enter fees and taxes that don’t earn commission.
3. Optionally enter how many similar policies you write a year.

Worked example

A $15,000 premium at 12.5% earns $1,875 commission; with $350 of fees, $13,475 is due to the carrier.

Frequently asked questions

What are typical P&C commission rates?

Personal lines are often 8–15% new business, commercial lines 10–20%, and they vary by carrier, line and new vs renewal.

Is commission paid on taxes and fees?

Generally no — commission is calculated on premium only.

Guides

• How Insurance Commissions Work for Agents and Producers

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• Contingent Commission Calculator — Estimate a carrier profit-sharing (contingent) bonus from loss ratio, growth and premium volume.
• Client Lifetime Value Calculator — Calculate the lifetime value of an insurance client from premium, commission, margin, retention and discount rate.