PremiumTools

Premium Breakdown Tool

Split a premium into coverage, fees and tax, and see what the payment schedule alone adds to the annual bill.

Last reviewed

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Free · No sign-up · Runs in your browser

A renewal notice bundles several different things into one number: the premium for the coverage, a policy fee, an instalment fee on each payment, and in many places a premium tax. Only the first buys protection.

This tool separates them, so you can see what share of the bill is coverage and what share is administration - and specifically how much the payment schedule is adding.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Total annual cost

$1,522

Amount per payment

$127

Premium for coverage
$1,380
Total fees
$107
Premium tax
$35
Fees and tax as share of total
9.3%
Cost per month
$127
Cost per day
$4.17
Payments per year
12

This is an estimate based on the values you entered. Actual premiums, coverage, eligibility and pricing vary by provider and by individual circumstances.

Instalment fees are charged per payment, so a monthly plan multiplies them twelve times. That is usually the largest avoidable part of an insurance bill.

How to use the premium breakdown tool

  1. Enter the annual premium for the coverage itself.
  2. Choose how many payments you make each year and the fee charged per payment.
  3. Add the one-off policy fee and any premium tax percentage.
  4. Read the total, the per-payment amount, and the share that is fees and tax.

What people use this for

  • Checking a renewal notice line by line before paying it.
  • Working out how much of an increase is coverage and how much is fees.
  • Comparing carriers where one bundles fees and the other itemises them.
  • Budgeting insurance as a monthly or daily cost alongside other expenses.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

Twelve payments a year

A $1,380 premium in twelve instalments with a $6 fee each, a $35 policy fee and 2.5% tax.

Total annual cost
$1,522
Amount per payment
$127
Fees and tax as share of total
9.3%

Two payments a year

The same premium split in two, which removes ten instalment fees.

Total annual cost
$1,462
Amount per payment
$731
Total fees
$47

Fees do not scale with coverage

A policy fee is typically flat regardless of how much coverage you buy, so it is a larger share of a small policy than a large one. The same applies to instalment fees, which are charged per payment rather than per dollar insured.

That asymmetry is worth knowing when comparing carriers, and it is the main reason small policies look expensive per unit of protection.

The cost-per-day view changes decisions

Converting an annual premium to a daily figure reframes it usefully. A $1,500 policy is $4.11 a day, which is a better frame for deciding whether an endorsement costing $40 a year is worth having.

Small coverage improvements are frequently declined because they are quoted annually and sound like real money. Quoted daily, most of them are obviously worth taking.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • Total cost = premium + premium tax + policy fee + (instalment fee × number of instalments).
  • Tax is applied to the premium only, which is the most common treatment. Some jurisdictions tax fees as well.
  • All figures are estimates produced from the values you enter. This site has no rate feed and no carrier data, so it cannot quote or price a policy.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator provides an estimate based on the information you enter. Actual insurance premiums, coverage, eligibility and pricing vary by provider and individual circumstances.

This website is not an insurance company, an insurance agency or a licensed broker. It does not sell insurance, does not provide insurance quotes, and is not authorised to give advice about which policy you should buy.

No result produced here is an offer of insurance or a guarantee of coverage. Only a licensed insurer or agent, working from your verified details, can quote or bind a policy.

Frequently asked questions

What is a policy fee?

A flat administrative charge some carriers add to issue or renew a policy. It is separate from the premium and generally not refundable on cancellation.

Can I reduce the fees?

Usually by changing the payment schedule rather than by negotiating. Fewer payments means fewer instalment fees, and automatic payment often waives them entirely.

Is the policy fee refunded if I cancel?

Frequently not - many carriers treat it as fully earned at inception. Check the cancellation provision.

Why does my carrier’s total differ?

Some fold fees into the quoted premium, apply tax to a different base, or round each instalment. Use this to understand the structure and ask precise questions.

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