Insurance Commission Calculator

How to Use This Calculator

1. Enter the Premium Amount of the insurance policy (the total amount of insurance coverage)
2. Select the Policy Type from the dropdown menu
3. Enter the Commission Rate (the standard percentage of the premium paid as commission)
4. Enter the Sales Commission Rate (additional percentage for sales performance bonuses)
5. Click the Calculate button to see the results

Understanding Insurance Commissions

Insurance commissions are payments made to agents or brokers for selling insurance policies. They typically consist of two components:

• Policy Commission: A standard percentage of the premium amount that's typically consistent across all policies of a given type.
• Sales Commission: An additional percentage that may vary based on sales performance, territory, or other factors.

Example Calculation

For example, if you have a health insurance policy with a premium amount of $5,000, a policy commission rate of 3%, and a sales commission rate of 1.5%:

$5,000 × (3% + 1.5%) = $5,000 × 4.5% = $225 total commission

This calculator helps you quickly determine your potential earnings from insurance sales and can be used for:

• Comparing different insurance products
• Planning sales strategies
• Evaluating your earnings potential
• Understanding how different factors affect your commission