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๐Ÿ–ผ๏ธ NFT Royalties

Calculate your royalties

๐Ÿ’ก Why This Matters

NFT royalties are a game-changer for creators. Unlike traditional art sales where you get paid once, royalties mean every resale generates income. This calculator shows your monthly potential from secondary sales.

Monthly Royalties

-- ETH

$

โœจ Did You Know?

Ongoing NFT royalties as a technical concept date back to a 2018 proposal, but they became mainstream during the 2021 NFT boom โ€” and by 2023, several major marketplaces made them optional, sparking major debate in the creator community.

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Understanding NFT Royalties: A Complete Guide

What are NFT Royalties? NFT royalties are a percentage of the sale price that creators receive from every secondary market transaction of their work. Unlike traditional art galleries that take 50% or more, NFT platforms typically allow creators to set royalties between 2.5% and 10%.

How It's Calculated Multiply the floor price (lowest listed price) by the royalty percentage, then multiply by the number of expected monthly sales. This gives you potential monthly earnings. For example, 1.5 ETH floor at 5% royalty with 10 monthly sales equals 0.75 ETH per month.

Platform Comparison Different marketplaces offer different royalty structures. OpenSea, Blur, and Foundation have varying rates. Some allow tiered royalties based on collection volume. Always check the platform's fee structure before minting.

Market Factors Royalty earnings depend heavily on collection floor price and sales volume. A high floor with few sales may generate less than a lower floor with high volume. Track both metrics to optimize your strategy.

Using Your Results Use calculated royalties to set pricing strategies. Remember to factor in platform fees (typically 2.5% to 5% on top of royalties) and gas fees for minting and listing. Calculate net earnings, not just gross royalties.

๐Ÿงฎ Example

Example: Say your collection has a 1.5 ETH floor, a 5% royalty rate, and averages 10 sales a month. Multiply: 1.5 ร— 0.05 ร— 10 = 0.75 ETH monthly royalties โ€” that's before platform fees or gas costs are subtracted.

โ“ FAQ

How are NFT royalties calculated?

Multiply the floor price by the royalty percentage, then multiply by the number of expected monthly sales. For example, a 1.5 ETH floor at a 5% royalty with 10 monthly sales equals 0.75 ETH per month.

What's a typical NFT royalty percentage?

Most NFT platforms allow creators to set royalties between 2.5% and 10% of the secondary sale price, compared to the 50%+ that traditional art galleries often take.

Do platform fees reduce my royalty earnings?

Yes โ€” most marketplaces charge platform fees of roughly 2.5% to 5% on top of your royalty, and gas fees for minting and listing also cut into net earnings, so calculated royalties are gross, not take-home.