Premium Finance Calculator
Estimate the monthly installment, finance charge, and total cost of financing a policy premium through a premium finance agreement.
calculatorPublished 2026/09/21Last verified 2026/09/21
Premium Finance Calculator
Estimate the monthly installment and finance charge when a policy premium is paid through a premium finance agreement.
Monthly installment
$926.34
9 payments on $8,000.00 financed
| Metric | Value |
|---|---|
| Down payment | $2,000.00 |
| Amount financed | $8,000.00 |
| Total finance charge (interest) | $337.02 |
| Total of installments | $8,337.02 |
| Total paid incl. down payment | $10,337.02 |
Not a quote. Premium finance terms, fees, late charges, and cancellation rules are set by the premium finance agreement and are regulated differently from state to state. The signed agreement governs the actual amounts.
FAQs
- How is the monthly installment calculated?
- The calculator uses a standard amortizing formula on the amount financed: P times r divided by one minus (1 plus r) to the power of minus n, where r is the APR divided by 12 and n is the number of installments. With a 0% APR, the installment is simply the amount financed divided by n.
- Is the down payment included in the finance charge?
- No. The down payment is paid up front and is not financed, so no interest applies to it. It is included in the total paid figure so you can see the full cost of the policy.
- Why might my premium finance agreement show different numbers?
- Agreements can include setup fees, different payment timing, or state-specific charges. This calculator is an estimate and not a quote; the signed agreement governs the actual amounts.