Calculators
Net Revenue Interest Calculator
Calculate net revenue interest from working interest and royalty burdens, and the investor's revenue and cost shares.
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- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Evaluating oil and gas investments
- Checking revenue statements
- Negotiating farm-ins
- Lease acquisition decisions
About this tool
What the Net Revenue Interest Calculator does
In oil and gas, a working interest owner pays its share of costs but receives revenue only after royalties and overriding royalties are deducted. Net revenue interest (NRI) is working interest × (1 − total royalty burden). The gap between cost share and revenue share drives the economics.
Formula
- NRI = working interest × (1 − royalty − overriding royalties)
- Revenue share = well revenue × NRI
- Cost share = operating costs × working interest
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Working interest | 25% |
| Landowner royalty | 20% |
| Overriding royalty interests | 3% |
| Well revenue per month (100%) | $400,000 |
| Well operating costs per month (100%) | $90,000 |
| Result | Value |
|---|---|
| Net revenue interest | 19.25% |
| Your monthly net cash flow | $54,500 |
| Your revenue share | $77,000 |
| Your cost share | $22,500 |
| Lease net revenue interest (100% WI) | 77.0% |
How to read the result
Investors pay costs on the full working interest but receive revenue on the smaller NRI; burdens above about 25% squeeze returns.
Check whether costs include capital calls for new wells or workovers.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
The share of production revenue an owner receives after royalty burdens.
An ownership share that bears its share of drilling and operating costs.
A royalty carved out of the working interest, free of costs, that ends with the lease.
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