Earned Premium Calculator

What is earned premium? Earned premium is the portion of a written policy premium that corresponds to coverage already provided up to an as-of date (i.e., revenue you’ve “earned...

Earned Premium Calculator

Calculate earned and unearned premium as of a specific date using straight-line (pro rata) earning across the policy period.

$

Total premium for the full coverage period (often called written premium for the term). Use the same currency for all amounts.

The first day of coverage (inclusive).

The last day of coverage (inclusive). If your policy expires on the next renewal date, enter the last covered day (e.g., Dec 31 for a calendar-year policy).

Calculate how much premium is earned through this date. If it falls outside the coverage period, results are capped at 0% (before start) or 100% (after end).

Scenarios
Load common policy timelines to see how the as-of date changes earned vs unearned premium.
Annual policy (mid-year)Annual policy (near renewal)Quarterly policy (mid-term)As-of date after coverage ends

Results

  • Earned premium$
  • Unearned premium$
  • Earned (%)— %
  • Unearned (%)— %
  • Days earned— days
  • Total coverage days— days

Enter your inputs above to calculate the results.

What is earned premium?

Earned premium is the portion of a written policy premium that corresponds to coverage already provided up to an as-of date (i.e., revenue you’ve “earned” by carrying risk through time).

It matters because it directly affects:

  • Revenue recognition (matching principle over the coverage period)
  • Unearned Premium Reserve (UPR), a balance-sheet liability you can size precisely using the earned vs. unearned split
  • Underwriting performance metrics, where earned premium is usually the denominator—especially in the Loss Ratio Calculator, Expense Ratio Calculator, and Combined Ratio Calculator

If you’re doing portfolio or product-line review, earned premium also supports smarter comparisons of unit economics across time windows (not just what was billed). Once you’ve calculated earned premium, you can translate it into underwriting profit and operating efficiency using the Underwriting Profit Calculator

Formula

The simplest straight-line approach earns premium proportionally with time:

Earned Premium (EP) = P × d / D
Unearned Premium (UP) = P − EP

Where:

  • P = written premium for the policy term
  • d = days of coverage earned through the as-of date
  • D = total days in the coverage period

Tip: if you’re working on a monthly close, you’ll often run the earned premium output straight into your ratio stack (e.g., Combined Ratio Calculator) so your underwriting KPIs line up with your financial reporting period.

Example

A $1,200 annual policy runs from 2026-01-01 to 2026-12-31, and you’re measuring as of 2026-06-30.

  • Days earned (d) = 181
  • Total coverage days (D) = 365
Earned premium = $1,200 × (181 / 365) = $595.07
Unearned premium = $1,200 − $595.07 = $604.93

Frequently Asked Questions

How do I calculate earned premium “as of” month-end for a policy paid upfront?

Use the as-of date as your cutoff. The calculator prorates the total policy premium by days earned so you can book earned vs. unearned at month-end.

Do I count the policy start date and the as-of date as earned days (inclusive vs. exclusive)?

In most straight-line daily earning setups, you count covered days inclusively. If coverage starts 2026-01-01 and as-of is 2026-01-01, that’s 1 day earned.

Why is my refund after cancellation sometimes less than the “unearned premium” shown here?

This calculator shows straight-line unearned premium. Some cancellations apply short-rate penalties (or minimum earned premium rules), so the refund can be less than the pro-rata unearned amount.

How should I handle endorsements or premium changes mid-term with earned premium?

Don’t prorate the original premium only. Prorate each premium change from its effective date to the end of coverage (or run separate calculations per segment and add them up).

Sources & Methodology