Commission Calculator
Calculate insurance commission on written premium with flat or tiered rates and producer splits.
Commission Calculator
Calculate insurance commission on written premium with flat or tiered rates, then split it between producer and agency.
Gross commission
$12,000
Effective rate 12.00%
| Recipient | Share | Amount |
|---|---|---|
| Producer | 60% | $7,200 |
| Agency | 40% | $4,800 |
Estimate for planning only. Actual commission depends on your carrier contracts and producer agreements.
FAQs
- How is insurance commission calculated?
- Commission is written premium multiplied by the commission rate. For example, $100,000 of premium at a 12% rate produces $12,000 of gross commission, which may then be split between the producer and the agency.
- What is a tiered commission structure?
- A tiered structure applies different rates to different premium bands. With marginal tiers, each band is paid at its own rate, so only the premium above a threshold earns the higher rate.
- What is a producer commission split?
- A split divides the gross commission between the producer who wrote or services the account and the agency. A 60/40 split, for instance, pays the producer 60% and the agency 40%.
- What commission rate do insurance agents earn?
- Rates vary by line and carrier. Personal lines often pay around 8% to 15%, while commercial lines can be higher. Check your carrier contracts for exact rates.
Related Terms
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.
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.
Producer Licensing
The state-by-state system requiring insurance agents and brokers to obtain and maintain licenses to solicit or sell insurance for each line of authority.