Calculators
Oil and Gas Royalty Calculator
Estimate monthly oil and gas royalty payments from production, prices, royalty rate, decimal interest and deductions.
- Runs in your browser
- 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
- Checking royalty statements
- Valuing mineral rights
- Evaluating lease offers
- Estate and tax planning
About this tool
What the Oil and Gas Royalty Calculator does
Mineral owners are paid royalties on oil and gas sold from their acreage. The owner’s decimal interest equals net mineral acres divided by the unit’s acres, times the lease royalty rate. Multiplying that decimal by the value of production, less allowed deductions and taxes, gives the payment.
It also works as a royalty payment estimator or a mineral royalty calculator.
Formula
- Decimal interest = net mineral acres ÷ unit acres × royalty rate
- Payment = (oil × price + gas × price) × decimal × (1 − deductions) × (1 − tax)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Unit oil production per month | 9,000 barrels |
| Oil price | $70.00 |
| Unit gas production per month | 15,000 mcf |
| Gas price per mcf | $2.80 |
| Your net mineral acres | 20 |
| Unit size | 640 acres |
| Lease royalty rate | 18.75% |
| Post-production deductions | 10% |
| Severance tax | 5% |
| Result | Value |
|---|---|
| Estimated monthly royalty | $3,367 |
| Annual royalty | $40,399 |
| Decimal interest | 0.0059 |
| Unit gross revenue per month | $672,000 |
How to read the result
Check your decimal interest on the division order against your own acreage and lease; errors are common.
Production from new wells declines steeply in the first years, so early royalty cheques are usually the largest.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Production value multiplied by your decimal interest, less any allowed deductions and taxes.
Your share of production from a unit, based on your acreage and royalty rate.
Lease royalties commonly range from 12.5% to 25%.
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