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How It Works

The calculator turns four simple inputs — retail price, royalty rate, retail channels and unit velocity — into a monthly and annual royalty estimate. Everything updates instantly as you type.

Total Stores

Sum of all selected retailer store counts

Monthly Units

Total Stores × Units Sold Per Store Per Month

Monthly Retail Sales

Monthly Units × Retail Price

Annual Retail Sales

Monthly Retail Sales × 12

Royalty Per Unit

Retail Price × Royalty Rate

Estimated Monthly Royalty

Monthly Retail Sales × Royalty Rate

Estimated Annual Royalty

Annual Retail Sales × Royalty Rate

Retail vs. wholesale basis

Licensing royalties may be paid on retail sales, wholesale revenue or another negotiated basis. Choose "Wholesale Sales Estimate" in Step 3 and set the wholesale percentage of retail — commonly around 50% — and every result recalculates on that basis. The basis in use is labeled on all results.

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