Client Retention Calculator for Insurance Agencies
What is client churn costing my life insurance book?
This calculator turns your retention rate into dollars. It projects how many policyholders and how much commission you keep over 3, 5, and 10 years, estimates client lifetime value, and shows the revenue a five-point retention gain adds. Because a life insurance book compounds on renewals and referrals, small retention improvements produce large differences over time. Enter your numbers below.
Educational estimate only, not financial advice. Projections assume a constant retention rate and revenue per client. Kadence does not provide financial advice.
How the estimate works
Churn cost this year
Clients lost equals your book multiplied by one minus the retention rate. Multiplying those lost clients by the average annual revenue per client gives the revenue that walks out the door in a single year, before counting the referrals those clients would have made.
Why it compounds
Retention compounds: the clients remaining after each year are the prior year multiplied by the retention rate again. The calculator projects the book at 3, 5, and 10 years and sums the revenue lost along the way, which is why a client lost early costs far more than a single year of revenue.
The retention-improvement lever
The calculator reruns the projection with retention five points higher and reports the extra ten-year revenue. Consistent, compliant follow-up is the cheapest way to move that number, which is exactly the motion Kadence automates so no renewal or check-in quietly slips.
Related terms and guides
Frequently asked questions
Why does client retention matter so much for an insurance book?
An insurance book compounds on renewals and referrals, so every retained client keeps paying and keeps referring for years. Churn quietly erodes that base: a client lost this year is lost revenue every year after, plus the referrals they never make. Small retention gains compound into large revenue differences over time.
How do I calculate my retention rate?
Divide the clients you kept over a period by the clients you started with, then multiply by 100. If you began the year with 500 clients and 450 remained, your retention rate is 90 percent and your churn rate is 10 percent. Enter your own numbers and the calculator projects the book forward from there.
What is client lifetime value?
Client lifetime value is the total revenue you expect from a client before they leave. A simple estimate divides the average annual revenue per client by the churn rate, so a client worth 800 dollars a year at 10 percent churn has a lifetime value near 8,000 dollars. Higher retention raises lifetime value directly.
Is this calculator financial advice?
No. It is an educational planning estimate based on the numbers you enter and a constant-retention assumption. Real books vary by product, cohort, and year. Kadence does not provide financial advice. Use the figures to prioritize retention work, not as a forecast of results.