Updated October 22, 2026
This insurance agency value calculator values a book of business two ways from your own numbers: annual commissions times a revenue multiple, and adjusted EBITDA (commissions minus expenses and a market salary for the owner's job) times an EBITDA multiple. Then it projects the book forward from your retention and new business, so you see what it will be worth in a few years and the size it levels off at if nothing changes. The multiples are inputs, because they depend on your market, mix and buyer.
Quick answer: Value by revenue = annual commissions × revenue multiple (low and high). Adjusted EBITDA = commissions − operating expenses − market salary for the owner. Value by earnings = adjusted EBITDA × EBITDA multiple. Book next year = book × retention + new commissions; it levels off at new commissions ÷ (1 − retention).
An estimate from the numbers you entered, not a market price. Put in your own costs for a number you can stand behind.
Owners spend about 11 to 16 hours/week on admin, and a lead reached within an hour is nearly 7 times more likely to turn into a real conversation (HBR). The math is the easy part; the money leaks out in the calls you can't take, the follow-ups nobody sends and the invoices that sit unpaid. Unmanually is a 24/7 AI Office Manager for insurance agencies that you run by voice from your phone:
Sources: admin hours, Time etc / Censuswide 2023 and Amex SME Barometer 2026; speed to lead, HBR audit of 2,241 US companies (2011).
We send these exact numbers to your inbox in a few seconds, with a link that reopens the calculator with them filled in.
Email only. We use it to send your breakdown and follow up about Unmanually. Unsubscribe any time.
Unmanually is an AI Office Manager that works 24/7 and that you run by voice from your phone. Leave your mobile number and the AI Office Manager calls you right away, the same way it would call back a family shopping for home and auto before their renewal. That call is the demo: it answers, books you a 15-minute time with the founder and follows up.
We use your details only to call you and follow up about Unmanually. Unsubscribe any time.
value by commissions = annual commissions × revenue multiple (low to high)adjusted EBITDA = commissions − operating expenses − market salary for the owner rolevalue by earnings = adjusted EBITDA × EBITDA multiple (low to high)book next year = book × retention + new business commissionsbook levels off at = new business ÷ (1 − retention)
These are assumptions for illustration, including the multiples. They are not market quotes; get yours from a broker or appraiser.
An agency with $500,000 of annual commissions, 88% retention, $75,000 of new business a year, $275,000 of operating expenses excluding owner pay and an $80,000 market salary for the owner's role. Revenue multiples of 1.5× to 2.5×, EBITDA multiples of 5× to 8×.
By commissions the value is $500,000 × 1.5 to 2.5 = $750,000 to $1,250,000. Adjusted EBITDA is $500,000 − $275,000 − $80,000 = $145,000 (29%), so by earnings the value is $725,000 to $1,160,000. Each year 12%, or $60,000, does not renew while $75,000 is added, so the book grows to $559,034 in 5 years, about $1,118,067 at the 2× midpoint. It levels off at $75,000 ÷ 0.12 = $625,000.
Raise retention to 92% and the same new business takes the book to $649,152 in 5 years and a ceiling of $937,500.
Smaller books are often priced as a multiple of commission revenue, larger agencies as a multiple of adjusted earnings. Both depend on what the buyer believes about the future: will the revenue renew, how profitable is it, and how much work does it take to keep. Running both methods side by side shows when they disagree, which usually means expenses or owner pay need a closer look.
A book that keeps most of its revenue is worth more than a bigger book that leaks. The projection makes the point: with the same new business, a few points of retention change where the book levels off by a large amount. Annual reviews, multi-policy households and fast service at renewal and claims time all help retention.
Commercial and personal lines, carrier appointments, the share of revenue from your top accounts and contingent income all affect what a buyer will pay. A book where one client is a large share of revenue carries more risk. Write down your mix and concentration before talking to buyers.
If every client relationship runs through the owner, buyers worry the revenue walks out with them. Documented processes, a team that clients know and a clean agency management system make the book easier to transfer and worth more.
New business needs quoting, follow-up and service. Quote requests and service calls that go unanswered are lost premium and lost retention. Track how many quote requests you get and how many you answer the same day; it is one of the cheapest places to grow the book.
A calculator gives a range to plan with, not an appraisal. Before a sale, perpetuation plan or partner buy-in, get a formal valuation, and expect buyers to look closely at earnings quality, carrier contracts and how the revenue would transfer.
People shopping for insurance call a few agencies and buy from the one that quotes first. Unmanually is an AI Office Manager that works 24/7 and that you run by voice: the AI Office Manager answers, takes the quote intake you set (drivers, vehicles, property, coverage dates), books the call with your producer and texts the confirmation, sends renewal reminders and chases missing documents. See what Unmanually does for insurance agencies, or get a free website that calls every new lead back in about a minute.
What the AI Office Manager does for agencies, from quote calls to renewals.
What unanswered quote calls cost an agency.
Practical lead sources for agencies.
Pricing calculators and templates for every trade.
Two common ways are a multiple of annual commission revenue and a multiple of adjusted EBITDA. The calculator does both with multiples you enter, because the right multiple depends on your market, mix, retention and buyer.
It varies with size, mix, retention, profitability and the buyer. The calculator's defaults are assumptions for illustration; get your range from a broker or appraiser who values agencies in your market.
Retention decides how much of today's revenue is still there next year. In the projection, the book levels off at new business ÷ (1 − retention): at 88% retention and $75,000 of new business that is $625,000; at 92% it is $937,500.
Commission revenue minus operating expenses and a market salary for the owner's role. It shows what the agency earns for an owner who doesn't work in it.
Raise retention and write more new business. Answering quote requests quickly, cross-selling existing households and reviewing accounts at renewal all help.
Pick the one that fits where your business is right now.
$99/month
Your AI Office Manager calls back every lead, books the job and runs your office 24/7, so hours of admin become minutes of talking.
Start Growth$0, no credit card
A website for your business that makes your phone ring, built in 60 seconds. Add the Growth plan whenever you are ready.
Get my free website