NFT Royalty Earnings Calculator
NFT royalties allow creators to earn a percentage of every secondary sale. Enter your royalty percentage, average sale price per NFT, the number of secondary sales, and the marketplace fee rate to estimate your total royalty earnings. This calculator also shows the collection-wide earnings if you have multiple NFTs in a collection.
NFT royalty formula
Royalty Per Sale = Sale Price x (Royalty % / 100)
Marketplace Fee Per Sale = Sale Price x (Marketplace Fee % / 100)
Seller Net = Sale Price - Royalty Per Sale - Marketplace Fee Per Sale
Total Royalties = Royalty Per Sale x Number of Sales
Source: Ethereum EIP-2981 (NFT Royalty Standard), which defines the standard interface for on-chain royalty information.
Key considerations for NFT royalties
- Royalty enforcement is marketplace-dependent. Some platforms allow buyers to opt out of royalties.
- Setting royalties too high (above 10%) may deter secondary market activity, reducing your total income.
- Gas fees for receiving royalties on Ethereum can be significant for small royalty amounts; layer-2 chains have lower fees.
- Multiple NFTs in a collection each generate their own royalty stream, so a larger collection multiplies your potential earnings.
- Royalty income is taxable when received; keep records of all royalty payments for tax purposes.
NFT royalties: frequently asked questions
What are NFT royalties?
NFT royalties are automatic payments made to the original creator (minter) every time their NFT is resold on a secondary market. The royalty percentage is set by the creator at minting time and is typically encoded in the smart contract (e.g., EIP-2981 on Ethereum). When a buyer resells the NFT, the marketplace deducts the royalty from the sale price and sends it to the original creator's wallet.
What is a typical NFT royalty percentage?
NFT royalties typically range from 2.5% to 10%, with 5% being a common standard. Higher royalties reduce buyer demand for reselling since sellers receive less net proceeds. Many popular NFT collections set royalties between 5% and 7.5%.
Are NFT royalties guaranteed?
No. Royalty enforcement depends on the marketplace. On-chain royalties via EIP-2981 are readable by marketplaces but not always enforced. Some NFT marketplaces have made royalties optional, allowing buyers and sellers to bypass them. Creator royalties are therefore dependent on the marketplace policies in place at the time of each sale.
How are NFT royalty earnings calculated?
Royalty per sale = Sale Price x Royalty Rate. Marketplace fee per sale = Sale Price x Marketplace Fee Rate. Net royalty = Royalty per sale (marketplace fees on royalties vary by platform; some platforms deduct their fee from the sale proceeds before calculating royalties). Total earnings = Net Royalty per sale x Number of Sales.
Are NFT royalties taxable income?
Yes. In the United States, NFT royalties received by the original creator are generally treated as self-employment income or ordinary income (depending on your business structure) and are taxable when received. Capital gains tax may also apply when you sell your original NFT. Consult a tax professional for your specific situation.
Official sources
- EIP-2981, NFT Royalty Standard: eips.ethereum.org/EIPS/eip-2981.
- IRS Notice 2023-27 (NFT tax treatment): irs.gov/pub/irs-drop/n-23-27.pdf.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.