.rpm-calc-box {
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.rpm-calc-title {
text-align: center;
margin-bottom: 25px;
color: #2c3e50;
font-size: 24px;
font-weight: 700;
}
.rpm-input-group {
margin-bottom: 20px;
}
.rpm-label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #555;
}
.rpm-input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Ensures padding doesn't affect width */
}
.rpm-input:focus {
border-color: #0073aa;
outline: none;
box-shadow: 0 0 0 2px rgba(0,115,170,0.2);
}
.rpm-btn {
width: 100%;
background-color: #0073aa;
color: white;
padding: 15px;
border: none;
border-radius: 4px;
font-size: 18px;
cursor: pointer;
transition: background-color 0.3s;
font-weight: 600;
}
.rpm-btn:hover {
background-color: #005177;
}
.rpm-result-box {
margin-top: 25px;
padding: 20px;
background-color: #fff;
border-left: 5px solid #0073aa;
display: none; /* Hidden by default */
}
.rpm-result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
border-bottom: 1px solid #eee;
padding-bottom: 10px;
}
.rpm-result-item:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.rpm-result-label {
color: #666;
}
.rpm-result-value {
font-weight: 700;
color: #2c3e50;
}
.rpm-total {
font-size: 22px;
color: #27ae60;
}
.rpm-article h2 {
margin-top: 30px;
color: #2c3e50;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.rpm-article h3 {
margin-top: 25px;
color: #34495e;
}
.rpm-article p {
margin-bottom: 15px;
font-size: 16px;
}
.rpm-article ul {
margin-bottom: 20px;
padding-left: 20px;
}
.rpm-article li {
margin-bottom: 8px;
}
.rpm-formula-box {
background: #eef2f5;
padding: 15px;
border-radius: 4px;
font-family: monospace;
margin: 20px 0;
text-align: center;
font-size: 18px;
border: 1px solid #d1d9e0;
}
function calculateRPM() {
// Get input values
var valueInput = document.getElementById('insurableValue').value;
var rateInput = document.getElementById('ratePerMille').value;
var resultBox = document.getElementById('rpmResult');
// Parse values
var insurableValue = parseFloat(valueInput);
var rate = parseFloat(rateInput);
// Validation
if (isNaN(insurableValue) || isNaN(rate) || insurableValue < 0 || rate < 0) {
alert("Please enter valid positive numbers for both Insurable Value and Rate Per Mille.");
resultBox.style.display = 'none';
return;
}
// Calculation Logic
// Rate per mille means Rate / 1000
var unitsOfThousand = insurableValue / 1000;
var totalPremium = unitsOfThousand * rate;
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
// Update DOM
document.getElementById('unitsResult').innerText = unitsOfThousand.toLocaleString('en-US', {maximumFractionDigits: 2});
document.getElementById('rateResult').innerText = formatter.format(rate);
document.getElementById('premiumResult').innerText = formatter.format(totalPremium);
// Show results
resultBox.style.display = 'block';
}
How to Calculate Rate Per Mille Insurance
In the insurance industry, particularly with property and casualty coverage, premiums are frequently calculated using a "rate per mille." While most consumer loans use percentages (per hundred), insurance often deals with high asset values where a "per thousand" metric allows for more precise rate setting.
The term "mille" is Latin for thousand. Therefore, a rate per mille literally translates to the cost per $1,000 of coverage.
The Rate Per Mille Formula
To determine your insurance premium using this method, you first need to determine how many units of $1,000 represent your total insurable value. The basic formula is:
Premium = (Insurable Value / 1,000) × Rate
Alternatively, if you are looking to calculate the rate itself based on a quoted premium:
Rate Per Mille = (Premium ÷ Insurable Value) × 1,000
Real-World Calculation Example
Let's say you are insuring a commercial warehouse building. The insurance policy structure is as follows:
- Total Insurable Value: $500,000
- Quoted Rate: 4.5 per mille
To calculate the annual premium:
- Divide the value by 1,000:
$500,000 / 1,000 = 500 units
- Multiply the units by the rate:
500 units × $4.50 = $2,250
So, the total annual premium for this policy would be $2,250.
Rate Per Mille vs. Percentage
It is easy to confuse per mille (‰) with percent (%). It is important to note the decimal difference:
- 1 Percent (1%) = 1 per 100.
- 1 Per Mille (1‰) = 1 per 1,000.
- Therefore, 10 Per Mille is equal to 1 Percent.
Insurers use per mille because a rate of 0.25% looks smaller and is harder to work with mentally than saying "2.5 per mille." It helps adjust pricing on granular levels for high-value assets without using too many decimal places.
Factors Influencing Your Rate
The "rate" input in the calculator above is determined by underwriters based on risk factors, including:
- Location: Proximity to fire hydrants, flood zones, or high-crime areas.
- Construction Type: Wood frame buildings typically have higher rates than fire-resistive masonry.
- Occupancy: A fireworks factory will have a significantly higher rate per mille than a library.
- Safety Features: Sprinkler systems and alarms can lower the rate per mille.