Insurance commission calculator
Enter the premium for the term and the commission rate for new business or for a renewal. The calculator writes out each step of the arithmetic with your numbers, including the return premium and chargeback when the policy is cancelled before the end of the term, and a producer share when there is one.
Your numbers stay on this device. Nothing is uploaded.
How the commission is calculated
Result
To divide every line of a statement among producers, use the producer split calculator. To compare what a statement paid with what was expected, use the expected-versus-paid reconciler.
What gets checked
- Each step (the commission, the return premium, the chargeback, and the producer share) is worked a second time with separate whole-number arithmetic, and both results must agree to the cent.
- Days in the term and days in force are counted a second way, and days in force plus days not used equal the days in the term.
- Earned premium plus return premium equals the premium.
- Commission kept plus the chargeback equals the commission, and the commission kept is within one cent of the rate times the earned premium.
- Producer share plus house share equals the commission, and what the producer keeps plus what the house keeps equals the commission kept.
- The steps listed carry the same amounts as the result.
How it works
- Enter the premium and the rate. Type the premium for the term, pick new business or a renewal, and type the rate for it. Commission is the premium times that rate. When both rates are typed, the same premium at the other rate is shown beside it for comparison.
- Add a producer share if there is one. Tick the box and type the producer's percent of the commission. The commission is divided between the producer and the house to the cent, and the two parts add up to it.
- Add a cancellation if there was one. Tick the box and enter the effective, expiration, and cancellation dates. The return premium is the premium times the days not used, divided by the days in the term, and the chargeback is the return premium times the same rate. The return premium can be typed as an amount instead of dates.
- Read the steps and the certificate. Each step is listed in order with the arithmetic written out, followed by the commission, the chargeback, the commission kept, and the list of checks. Export to Excel or CSV, or print.
Worked example
A made-up commercial package policy: a $4,800.00 premium for a term from January 15, 2026 to January 15, 2027, written as new business at 15% (the renewal rate is 10%), with a producer share of 40%. The policy is cancelled on May 15, 2026.
| Step | With these numbers | Result |
|---|---|---|
| 1. Commission at the new business rate | $4,800.00 × 15.00% | $720.00 |
| 2. For comparison, the same premium at the renewal rate | $4,800.00 × 10.00% | $480.00 |
| 3. Return premium, pro rata by days | $4,800.00 × 245 days not used ÷ 365 days in the term | $3,221.92 |
| 4. Earned premium | $4,800.00 − $3,221.92 | $1,578.08 |
| 5. Chargeback at 15.00% of the return premium | $3,221.92 × 15.00% | $483.29 |
| 6. Commission kept after the chargeback | $720.00 − $483.29 | $236.71 |
| 7. Producer share of the commission (40.00%) | $720.00 × 40.00% | $288.00 |
| 8. House share of the commission | $720.00 − $288.00 | $432.00 |
| 9. Producer share of the chargeback (40.00%) | $483.29 × 40.00% | $193.32 |
| 10. House share of the chargeback | $483.29 − $193.32 | $289.97 |
| 11. Producer keeps | $288.00 − $193.32 | $94.68 |
| 12. House keeps | $432.00 − $289.97 | $142.03 |
The term is 365 days and the policy was in force for 120 of them, which leaves 245 days not used. Step 3 works out to $3,221.9178 and is rounded to $3,221.92; step 5 works out to $483.288 and is rounded to $483.29. The commission kept is $236.71: $94.68 for the producer and $142.03 for the house, which add up to it exactly. The rate times the earned premium, $1,578.08 × 15%, is $236.712, the same $236.71.
The example uses made-up names and numbers.
Questions
How do you calculate insurance commission?
Multiply the premium by the commission rate. On a $1,250.00 premium at a 12% renewal rate, the commission is $150.00. The calculator writes this out with whatever numbers are entered, at the new business rate or the renewal rate.
How is the chargeback worked out when a policy cancels?
The return premium is the premium times the days not used, divided by the days in the term. Days in force are counted from the effective date up to, not including, the cancellation date. The chargeback is the return premium times the same commission rate, and the commission kept is the commission less the chargeback.
The carrier used a short-rate table or a minimum earned premium. Does this page do that?
No. From dates, this page works the return premium pro rata by days and says so beside the result. The return premium amount option takes the figure shown on a cancellation notice instead, and the chargeback is then that amount times the rate. The calculator reads no policy and no carrier contract.
How is rounding done?
Each multiplication is rounded once to the nearest cent, and exactly half a cent rounds away from zero. The return premium is rounded to the cent before the rate is applied to it.
How is the producer share divided?
The commission is divided between the house and the producer by the percent typed, to the cent. When the producer's part lands on an exact half cent, the half cent goes to the house, so the two parts always add up to the whole. The producer split calculator on this site divides statement lines the same way.
Does the calculator say what rate a carrier pays or whether a chargeback is owed?
No. It applies the rates and dates typed and proves the arithmetic. It makes no statement about what any carrier contract, commission schedule, or producer agreement requires.
This tool calculates and checks numbers. It is not legal, tax, or medical advice.