Captive vs Independent Income Calculator
Compare your annual income as a captive agent versus an independent agent on the same book.
Captive vs Independent Income Calculator
Compare your annual income as a captive agent versus an independent agent on the same book of business.
Commission pool: $240,000
Independents cover their own E&O, tech, rent, and staff; captives typically do not.
Independent net advantage
+$104,000
Independent earns more after overhead
| Model | Gross | Net income |
|---|---|---|
| Captive | $60,000 | $60,000 |
| Independent | $204,000 | $164,000 |
Estimate for planning only. Captive and independent compensation vary widely by carrier, contract, and benefits; consult each carrier's agreement.
FAQs
- Do captive or independent agents make more money?
- Independents keep a much larger share of commission but pay their own overhead, while captives keep less but receive leads, benefits, and support. The better outcome depends on book size, expenses, and the value of carrier support.
- What commission share does a captive agent keep?
- Captive agents typically keep a smaller portion of commission, often in the 20-30% range, because the carrier provides leads, brand, training, and overhead.
- What commission share does an independent agent keep?
- Independent agents usually keep the large majority of commission, often 80-90%, but must fund their own errors-and-omissions coverage, technology, office, and staff.
- What overhead should independents account for?
- Common independent costs include E&O insurance, agency management software, comparative raters, office space, marketing, and staff salaries.
Related Terms
Captive Agent
A licensed insurance agent who works exclusively for one carrier, representing only that company's products under an employee or exclusive agent agreement.
Independent Agent
A licensed producer representing multiple carriers who places business based on client need and market fit, owning their book of business on commission.
Appointment (Carrier Appointment)
The formal authorization from a carrier allowing an agent or agency to sell its products.