Turn base premiums into transparent discounted totals fast. Model multiple credits, fees, and taxes easily. Download clean summaries to share with clients anytime securely.
| Scenario | Base | Fees | Surcharge | Credits (pct + fixed) | Tax | Final (annual) |
|---|---|---|---|---|---|---|
| Balanced | $1,200.00 | $25.00 | 0.00% | 25.00% + $75.00 | 6.00% | $907.35 |
| Higher surcharge | $1,200.00 | $25.00 | 15.00% | 25.00% + $75.00 | 6.00% | $1,087.77 |
| Lower credits | $1,200.00 | $25.00 | 0.00% | 10.00% + $25.00 | 6.00% | $1,135.95 |
Premium credits reduce the amount you pay by rewarding lower risk and better behavior. In this calculator, credits are applied to the subtotal that combines base premium, surcharge, and fixed fees. That matters because a 10% credit on $1,200 saves $120, while the same credit on $1,400 saves $140. Keeping inputs separate lets you see what drives the final number. Common percent credits range from 1% paperless to 15% telematics, and fixed credits may include paid‑in‑full adjustments. Document each source to avoid double counting during renewal reviews.
Additive stacking sums credit rates and applies one discount to the subtotal, then subtracts fixed credits. Sequential stacking applies each percent credit to the running balance. For example, two 10% credits are 20% additive, but sequential becomes 1 − (0.9 × 0.9) = 19%. The difference grows as more credits are used.
Many policies limit total percent credits. The cap option scales credit rates down when the combined rate exceeds your cap, maintaining relative weights across credits. Surcharges raise the premium before credits, so a 15% surcharge on $1,200 adds $180. Fees are typically non‑negotiable and can reduce the apparent value of discounts.
The effective discount rate compares total savings from percent and fixed credits against the pre‑tax subtotal. This gives a cleaner measure than comparing to the base premium alone. Taxes are applied after credits in this model, so higher credits lower taxable premium. If your tax rate is 6%, every $100 reduction in the after‑credit amount reduces tax by $6.
Use the breakdown table to validate each step and explain outcomes. The step table shows how each percent credit changes the running total, which is useful for audits or client conversations. Exporting to CSV supports spreadsheet reviews, while the PDF summary is convenient for sharing. Recalculate scenarios to test different credits, caps, or term views.
A premium credit is a discount applied to your premium for meeting specific criteria, such as safer behavior, bundled policies, or risk‑reducing features. It lowers the amount used to compute your final cost.
Additive stacking applies one combined rate, while sequential stacking reduces the balance step‑by‑step. Sequential compounding usually produces slightly smaller total savings when several percent credits are used together.
If your combined percent credits exceed the cap, this tool proportionally scales each credit rate down to fit the cap. That preserves the mix of credits while respecting a maximum discount limit.
This calculator applies taxes after percent and fixed credits. That means credits reduce the taxable amount. If your jurisdiction taxes differently, adjust the workflow or treat taxes as a fee.
Enter unavoidable charges like policy fees and service fees as fees. Enter rate‑based increases, such as risk surcharges, as a percentage. Keeping them separate clarifies what is negotiable.
Use the export buttons to download a CSV for spreadsheet review or a PDF summary for quick sharing. Re-run the calculator with different assumptions to compare scenarios consistently.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.