NFT Royalty Calculator: Calculate Secondary Market Royalties
NFT Royalty Information
NFT royalties allow creators to earn a percentage of every secondary market sale. This calculator helps you understand potential earnings from NFT royalties across different marketplaces and scenarios.
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NFT Royalty Calculator
Calculate your potential earnings from NFT royalties on secondary market sales. This tool helps creators understand how much they can earn from royalties across different marketplaces and sale scenarios.
NFT royalties are programmed into smart contracts and automatically paid to creators whenever their NFTs are resold on compatible marketplaces.
Use this calculator to estimate your passive income potential and compare different royalty rates and marketplaces.
What are NFT Royalties?
The Creator Economy Revolution
NFT royalties represent a groundbreaking feature in the creator economy. Unlike traditional art sales where creators only profit from the initial sale, NFTs allow creators to earn ongoing royalties from secondary market transactions.
When an NFT is resold, a predetermined percentage (typically 5-10%) is automatically sent to the original creator's wallet through smart contract execution.
How Royalties Work
- • Built into NFT smart contracts
- • Automatic payment on secondary sales
- • Creator sets royalty percentage
- • Enforced by marketplace protocols
- • Works across different blockchains
Royalty Benefits
- • Passive income generation
- • Long-term value appreciation
- • Community building incentives
- • Fair compensation for creators
- • Sustainable creator economy
How NFT Royalties Work
The Transaction Flow
- 1. NFT Creation: Creator mints NFT with royalty rate
- 2. Primary Sale: Creator sells to first collector
- 3. Secondary Sale: Collector resells on marketplace
- 4. Royalty Payment: Smart contract sends % to creator
- 5. Platform Fee: Marketplace takes their cut
- 6. Seller Receives: Sale price minus fees and royalties
Example Transaction
Important Considerations
• Royalties are only paid on supported marketplaces
• Some platforms allow collectors to avoid royalties
• Creator must set reasonable royalty rates to attract buyers
• Gas fees may reduce effective royalty earnings
• Cross-chain transfers may complicate royalty payments
NFT Royalty Standards
EIP-2981 Standard
The Ethereum Improvement Proposal 2981 standardizes royalty payments across marketplaces.
- • Standardized royalty interface
- • Supports multiple recipients
- • Gas-efficient implementation
- • Widely adopted by major marketplaces
ERC-721 vs ERC-1155
Different token standards handle royalties differently.
- • ERC-721: Individual NFT royalties
- • ERC-1155: Collection-wide royalties
- • Both support EIP-2981
- • ERC-1155 more efficient for collections
Common Royalty Rates
Conservative
Established artists
Standard
Most common
Aggressive
New creators
Maximum
Rare use
Marketplace Comparison
| Marketplace | Platform Fee | Blockchain | Royalty Support |
|---|---|---|---|
| OpenSea | 2.50% | Ethereum | ✓ Yes |
| Rarible | 2.50% | Multi-chain | ✓ Yes |
| Foundation | 5.00% | Ethereum | ✓ Yes |
| SuperRare | 3.00% | Ethereum | ✓ Yes |
| Nifty Gateway | 5.00% | Ethereum | ✓ Yes |
| Binance NFT | 1.00% | BSC | ✓ Yes |
| Magic Eden | 2.94% | Solana | ✓ Yes |
| LooksRare | 2.00% | Ethereum | ✓ Yes |
| X2Y2 | 0.50% | Ethereum | ✓ Yes |
Platform Fee Impact
Platform fees are deducted from the sale price before royalties are calculated. Lower platform fees mean more money goes to creators and sellers.
Maximizing Royalty Earnings
Strategy 1: Optimal Royalty Rate
- • 5% is industry standard for most creators
- • Higher rates (7-10%) may reduce initial sales
- • Lower rates (2-3%) appeal to collectors
- • Consider your long-term goals
- • Test different rates with small collections
Strategy 2: Marketplace Selection
- • Choose marketplaces that enforce royalties
- • Consider platform fees vs. traffic
- • List on multiple marketplaces
- • Monitor where your NFTs sell best
- • Use aggregators for broader exposure
Strategy 3: Collection Design
- • Create desirable, unique artwork
- • Build community engagement
- • Generate hype and demand
- • Offer utility beyond speculation
- • Create scarcity through limited drops
Strategy 4: Long-term Planning
- • Focus on creating timeless value
- • Build personal brand as artist
- • Engage with collectors regularly
- • Create multiple collections over time
- • Diversify across different niches
Real-World Royalty Examples
CryptoPunk #3100
One of the most valuable CryptoPunks with extensive trading history.
• Latest sale: ~$1.2M
• Royalty rate: 2.5%
• Creator royalty: ~$30,000 per sale
• Total royalties earned: Millions over time
• Creator: Larva Labs (no royalties collected)
Bored Ape Yacht Club
Popular collection with active secondary market.
• Floor price: ~$50,000
• Royalty rate: 2.5%
• Creator royalty: ~$1,250 per sale
• Monthly sales: ~500 apes
• Monthly royalties: ~$625,000
Success Factors in Real Examples
• Brand Recognition: Established collections command premium prices
• Community Engagement: Active communities drive resale activity
• Utility Value: NFTs with real utility see more secondary sales
• Market Timing: Launching during bull markets maximizes initial sales
• Creator Reputation: Known artists attract more collectors
Frequently Asked Questions
Are NFT royalties guaranteed?
Royalties are only guaranteed on marketplaces that support and enforce them. Some platforms allow buyers to avoid paying royalties by trading peer-to-peer or using certain protocols. Always check marketplace policies.
Can I change royalty rates after minting?
Generally no. Royalty rates are set in the smart contract at minting time and cannot be changed. Some newer standards allow for adjustable royalties, but this is not common for most existing NFTs.
Do royalties apply to all NFT types?
Royalties work best with ERC-721 tokens. ERC-1155 tokens can also have royalties, but they're typically set at the collection level rather than individual token level. Some newer standards like ERC-721A optimize for gas efficiency.
How do gas fees affect royalties?
Gas fees are paid by the buyer/seller and don't directly affect royalty calculations. However, high gas fees can reduce the effective profit from NFT sales, indirectly impacting how often people trade your NFTs.
What happens if royalties aren't paid?
If a marketplace doesn't support royalties or allows royalty-free trading, creators won't receive payments. Some creators include contractual agreements requiring buyers to only trade on royalty-supporting platforms.