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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