Insurance producer commission calculator: work out each person’s commission
Commission for each line = sales on that line × that line’s rate. Add a tier if the month clears a threshold, then any boost or bonus. Enter your own plan and one month’s sales to work out each person’s commission, line by line. Nothing you type is saved.
Example — change these
Your plan
Each person’s month
Results
Producer A
EstimateEstimated commission this month
$1,250
Effective rate7.8%
$4,000 more reaches the Earnings Tier. On this month’s sales so far it would add $200.
| Line | Sales | Rate used | Amount |
|---|---|---|---|
| Auto | $10,000 | 10% | $1,000.00 |
| Home | 6 policies | $25 / policy | $150.00 |
| Per-Policy Bonus | $100.00 | ||
| Total | $1,250.00 | ||
At these numbers, Producer A’s estimated commission is $1,250: $1,000 from Auto, $150 from Home and a $100 Per-Policy Bonus.
Agency Edge works this out for every person, every pay period, from the sales you record.
Your numbers are saved in the link, so you can bookmark it or send it to a partner.
Work this out every pay period, for every person.
In Agency Edge, commission plans with base rates by line, tiers, boosts and bonuses are worked out for every pay period, and each person’s commission shows every sale behind it.
How we work it out
For each person, for one month:
- A % of Premium line = the line’s premium × its rate
- A Flat $ / Policy line = the line’s policies × its dollar amount
- Earnings Tier = once the month’s premium (or policies) reaches the threshold, every % of Premium line uses its rate plus the tier’s points for the whole month, including sales made before the threshold. Flat $ / Policy lines don’t change
- Boost = the boosted line’s premium × the boost’s points
- Per-Policy Bonus = policies on that line (or every line) × the dollar amount
- Total = every line + boost + bonus − chargebacks, never below $0; chargebacks the month can’t cover carry to the next period
- Effective rate = total ÷ the month’s premium
The table shows dollars and cents; the headline rounds to whole dollars, and percentages to one decimal. Where a figure would divide by zero, or a line with policies has no premium, it shows “—”.
How to use this calculator
- Enter your plan’s product lines and rates. They’re in your producer agreement or comp plan: each line is % of Premium or Flat $ / Policy.
- Add any Earnings Tier, boost or Per-Policy Bonus your plan has. Leave off what it doesn’t.
- Enter one month of each person’s sales by line from your sales log: premium and policies, counted the way your plan counts them — written or issued.
- Add the month’s chargebacks, then read each person’s commission line by line. Add up to four people to see them side by side.
For the formula from the carrier’s check to the producer’s commission, read how to calculate producer commissions.
Percent of premium or flat dollars per policy?
A % of Premium line grows with the size of each sale. A Flat $ / Policy line gives the same amount for every policy, whatever its premium. In the example above, $10,000 of Auto at 10% of premium is $1,000, and 6 Home policies at $25 each are $150. Some producer agreements are written as a share of the agency’s commission instead. Turn that into a % of Premium rate by multiplying the two: if the carrier’s commission to the agency is 12% and the producer’s split is 30%, the producer earns 3.6% of premium — $43.20 on a $1,200 policy. Read what is a commission split.
How an Earnings Tier works
Here, as in Agency Edge, a tier works on the whole month. Say Auto is 10% of premium, and the tier adds 2 points once the month reaches $8,000. A producer with $10,000 of Auto crosses it, so all $10,000 is worked out at 12%: $1,200, including the sales made before the month reached $8,000. Flat $ / Policy lines don’t change. Some plans raise the rate only on the premium above the threshold — that would be $8,000 at 10% plus $2,000 at 12%, or $1,040. If yours does, this calculator will show more than your plan does.
Boosts and bonuses
Owners use a boost to reward a line they want more of: a Cross-Sell Boost when a producer reaches a milestone on one line, worked out as extra points on another, or a Volume Boost on a line’s own production. Here a boost is points on one line’s premium: 1 point on $6,000 of Home is $60. A Per-Policy Bonus is a flat amount for each policy: $10 on each of 10 Auto policies is $100. Agency Edge also has milestone, streak and team bonuses — read bonuses: milestone, streak and team production.
Written or issued? And chargebacks
Plans count sales one of two ways. Counting written sales, a policy counts in the month it’s written. Counting issued sales, it waits until the carrier issues it, so a policy that never issues earns nothing. Enter the sales your plan counts.
When a policy cancels, some or all of its commission comes back as a chargeback. Enter the month’s chargebacks and they come off the total. If they’re more than the month earned, the total stops at $0 and the rest carries to the next period. Read chargebacks and carryovers.
Work it out every pay period
Agency Edge does this for every person, every pay period, from the sales you record. You build a commission plan once — base rates by line, Earnings Tiers, boosts and bonuses — and assign it to your team. Pay Team works out each person’s commission for the period and records it when you run it. Each person’s detail shows every sale behind their figure, sales that haven’t issued yet wait under Waiting to issue, and every run has a Payroll Summary PDF. The office pays people its own way, and pay tracking is optional.
Read how pay works, how to pay insurance producers, or see commission tracking software for agencies. Buying internet leads too? Try the free lead ROI calculator.
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Before you ask
How do I calculate a producer’s commission?
Multiply the sales on each product line by that line’s rate: a percent of premium, or a flat dollar amount per policy. Add any tier, boost or bonus your plan has, then subtract chargebacks.
Percent of premium or flat dollars per policy — which should I use?
Use what your producer agreement says; the calculator does both, line by line. If the agreement gives a share of the agency’s commission, multiply the two rates: 30% of a 12% commission is 3.6% of premium.
How do commission tiers work?
Here, as in Agency Edge, a tier works on the whole month: once the month’s premium or policies reaches the threshold, every % of Premium line gets its rate plus the tier’s points, including sales made before the threshold. If your plan raises the rate only above the threshold, this calculator will show more than your plan does.
Should commission count written or issued sales?
It depends on your plan. Many agencies count issued sales, so a policy that never issues earns nothing. Enter the sales your plan counts; the Written / Issued switch in the tool changes the helper text to match.
How are chargebacks handled?
They come off the month’s total. If they’re more than the month earned, the total stops at $0 and the rest carries to the next period.
Are the example rates industry benchmarks?
No. They’re example numbers; replace them with your own plan.
Does this work for captive and independent agencies?
Yes. The math is the same; use your own rates.
Is my data saved?
No. It’s worked out in your browser, and your numbers live only in the link. If you ask us to email your results, we keep your email address to send them.
Can Agency Edge do this every pay period?
Yes. It works out each person’s commission for every pay period from your plans and the sales you record, and records it when you run Pay Team. The office pays people its own way.