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Insurance Agency Commission Calculator

Estimate your agency's annual commission by premium volume, line of business, new-vs-renewal mix and producer split. Instant breakdown — no sign-up.

The rest is renewal premium.
Share of commission paid to producers.
Estimated gross agency commission
$—

This is a planning estimate using typical US commission bands, not a carrier statement. Real rates vary by carrier appointment, contract and state. Agencies that track commission automatically use an agency management system to reconcile every carrier statement against expected commission.

How insurance agency commission works

Independent agencies earn a percentage of the premium they place with a carrier. That percentage is set in the carrier contract and usually differs between the first year (new business) and every year after (renewal).

  • Personal lines — auto and home commonly pay a flat rate around 10–15%, the same on new and renewal.
  • Commercial P&C — often pays a higher new-business rate that steps down at renewal.
  • Life — pays a large first-year commission and a small renewal (trail) commission.
  • Contingency / profit-sharing — carriers pay agencies an extra bonus on top when loss ratios and volume targets are met.

Producer splits

If producers write business, they keep a share of the commission — commonly 30–50% on new business. The agency keeps the remainder to cover service, overhead and profit. Adjust the split above to see the producer payout and the agency's net.

Commission Calculator FAQ

Most independent agencies earn 10–15% of premium on personal lines, often more on new commercial business and a large first-year percentage on life. The exact rate is set in each carrier contract. Enter your premium and line above for an estimate.

New-business producer splits commonly run 30–50% of the commission, with renewals paid at a lower rate or rolled into a smaller service split. The right number depends on whether the producer also services the account.

Contingency (or profit-sharing) is an extra bonus carriers pay agencies when the book hits growth and loss-ratio targets. It typically adds a low single-digit percentage of premium on top of base commission and can swing agency profitability meaningfully.
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