Licensing Fee Calculator

About this calculator

A licensing fee is what a licensee pays a rights holder for permission to use a brand, trademark, patent, or other intellectual property, typically calculated as a royalty rate applied to the licensee's sales of the licensed product. Most licensing agreements also include a guaranteed minimum, so the licensor is paid at least that floor amount even if sales fall short — protecting the rights holder from a licensee that undersells or underreports.

This structure is standard across brand licensing, franchising, character and media licensing, and technology patents. This calculator takes a sales figure, a royalty rate, and a minimum guarantee and returns the greater of the two — the calculated royalty or the contractual minimum — as the fee owed.