Calculate earned and unearned premium for any as-of date — for reserves, cancellations and reporting.
How the earned premium calculator works
Written premium is earned evenly over the policy term. On any given date, the earned portion has been “used up” and the remainder is the unearned premium reserve.
Formula
Earned premium = Written premium × Days elapsed ÷ Days in term. Unearned = Written − Earned.
How to use it
Enter the written premium.
Enter the effective and expiration dates.
Enter the valuation date.
Worked example
$48,000 written on a one-year policy, valued 152 days in: $19,989 earned and $28,011 unearned.
Frequently asked questions
What is the difference between written and earned premium?
Written premium is booked when the policy is issued; earned premium accrues day by day as coverage is provided.
Why does earned premium matter?
Loss ratios and financial statements are measured against earned premium.
Loss Ratio Calculator — Calculate the insurance loss ratio (incurred losses ÷ earned premium), with or without LAE, against a target.
Combined Ratio Calculator — Calculate the combined ratio — loss & LAE ratio plus expense ratio — with statutory or GAAP basis, underwriting profit and operating ratio.