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You are here: Home / Insurance Commission Calculators / Medicare Commission Calculator

Medicare Commission Calculator

Medicare Advantage Income Planner

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Pick your experience level and we’ll tailor the calculator to you.
Choose the scenario that best represents your experience.

Experienced Agent Inputs

Complete the following information by entering your sales volume by policy type (new and replacement), sales closing percentage, and estimated per lead cost. Calculations are based on the national average CMS allows which in 2026 is $694 for New and $347 for Replacements.
Enter your total NEW policy sales. NEW policy sales are for customers that are on an MAPD for the first time. New sales typically represent less than 20% of most agents total sales. Example, if you sold 10 New customers, you probably also sold 40 replacement plans.
Enter your total replacement policy sales. Replacement policy sales are for customers that are changing plans (replacing). Replacements typically represent 80-90% of most agents total sales. Example, if you sold 10 New policies, you could safely estimate you would sell 40 replacements.
Enter your sales conversion rate. This is the percentage of people you meet with and write a policy. Choose the closest sales conversion percentage that represents your level of sales success.
Enter how much you are paying for sales leads. Example, $12 - $100 per lead
Continue Scrolling For Earnings Summary

New to Medicare? Start Here.

We’ll break down exactly how many policies, appointments, and dollars it takes to hit your income goal. But first, you need to know what commission number we're using in the income planner.
Conservative Commission Baseline
$347
A conservative per policy commission used to model your income projections.
*Actual commissions may be higher or prorated depending on enrollment type and timing. Our team makes sure new agents understand how and when they’re paid.

If you're brand new, here’s what this means:

When you help someone enroll in a Medicare Advantage plan, you earn a commission. That amount can vary depending on enrollment timing and type.

For this calculator, we use $347 as a conservative baseline so your income projection stays realistic.

↓ Your earnings breakdown updates instantly below

Here’s What Your First Year Could Look Like

What We’re Modeling For Your First Year
20%
Sales Conversion Rate
1 sale for every 5 presentations
$60
Average Lead Cost
Per purchased lead
These are the realistic sales benchmark assumptions we are using. As your skills improve and referrals grow, your efficiency will improve improve.
This is the total estimated number of policies you need to write in one year to earn the projected income you are looking to make.
This is how many sales you would need to make on a weekly basis to hit your income goal through out the year.
This is the number of sales presentations you would need to have each week to hit your weekly sales activity target.
This is a realistic, estimated cost you could expect to spend on marketing to achieve your income goal. This is based on 20% success rate which means if you sat in front of 10 people, you would successfully sell 2. This also assumes you are spending $60 per lead. This is an estimate only based on some industry norms, you should expect your sales numbers to improve and your costs to decrease as you become more efficient in the business.
This is a realistic, estimated cost you could expect to spend on marketing to achieve your income goal in your first year. This is based on 20% success rate which means if you sat in front of 10 people, you would successfully sell 2. This also assumes you are spending $60 per lead. This is an estimate only based on some industry norms, you should expect your sales numbers to improve and your costs to decrease as you become more efficient in the business.
Curious what a six-figure Medicare business looks like?

Your Path to $100,000 Residual Income

This is the number of weekly presentations you need to give to write the number of policies it takes to generate $100,000 in residual commissions in one calendar year.
This is the estimated amount of money you would realistically expect to spend on marketing if you were only buying leads to attract new customers and not working your natural network or getting referrals. As you can see, working referrals and your natural network can drastically reduce your out-of-pocket expenses.

Which approach feels right for you right now?
There isn't a right or wrong answer here. This question is designed to help us recommend a solution to you based on your needs.

Option 1: Captive Agency Fly By

Lack of budget for upfront expenses to get started selling Medicare is something we come across a lot.

If you have budget restraints, but still want to get started selling Medicare, a logical path would be considering joining a captive agency to gain experience.

What is a Captive Agency?


Captive agencies typically cover your marketing costs, licensing costs, sales training, and deep mentorship which can be extremely helpful to some people. But, there is a trade off.

The trade off of working for a captive agency means you take a reduced commission in return for the agency covering your expenses and providing the additional support. Most logical minded people would agree that's not a bad trade off. The commission decrease can vary a lot, but the biggest difference is usually whether or not you take a position that is commission only, vs. a position that is W2 with a base salary or hourly compensation. Both models have their pros and cons.

What most new agents don't know.

Many of the industries greatest and most successful producers started with captive agencies for many years before ever going independent. You can work for a captive agency and gain some really great experience and then decide to become independent when you're ready.

Option 2: Work Slower and Stay Independent


As you can imagine, you don't have to commit to trying to get 288 new customers your first year. In fact, it's actually pretty tough and 90+% of agents will never hit that sales volume in any given year.

So, the good news is you can still remain independent, maximize your commissions, and work with an FMO to develop a growth strategy that works for you and doesn't break your budget!

There are many great ways you build a residual income in the Medicare industry, you just need a partner that's willing to work with you transparently to give you guidance.
Would you like some recommendations for captive agencies that are currently hiring?

Experienced Agent Summary

This is your total number of new and replacement policies sold.
CPA is your Cost Per Acquisition. This is what your total cost is to acquire a new policy based on what you're paying for leads and your sales conversion percentage. The industry average is $300 per sale, so if you are less than $300, you're doing something right!
This is your estimated commission that you should expect to receive after your plans become effective in January.
This is your projected monthly renewal commissions (assumes 20% cancellations) you can expect to earn for your customers starting in month 13.
This is the number of active policies you still need to write in order to get to a six-figure residual income selling Medicare Advantage plans at your current run rate.
This is how much you would have to spend based on your current lead costs and sales conversion rate to acquire enough customers that generate a $100,000 per year commission income.
This is the amount of time it will take you to generate enough sales to earn a six-figure residual income if you only worked during AEP and sold the same amount as you listed above.
Would you like to fast track the time it takes to build a $100,000 residual income?

Connect with the Redbird Team today and get instant sales opportunity recommendations!

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