Compare royalty vs flat-fee offers · Project advance earn-out · Account for agent commission · Multi-SKU income planner
The royalty projection uses the deal terms and SKUs entered in the Royalty Deal tab. Adjust those inputs and this comparison updates live.
Based on the Royalty Deal inputs. Green rows indicate the period when the advance is fully earned out.
Surface pattern designers face a genuinely hard math problem at contract time: a brand offers you either a flat fee of $600 for two years or a 7% royalty on net sales. Without calculating projected units × royalty per unit × reporting periods × agent cut, it's impossible to know which deal earns more. This calculator does that math live — and factors in the things designers regularly overlook:
| Product Category | Typical Range |
|---|---|
| Home textiles / bedding | 5–10% |
| Apparel / fabric | 5–10% |
| Stationery / gift wrap | 3–8% |
| Home décor / ceramics | 5–10% |
| Pet accessories / giftware | 4–8% |
| Broad exclusive license | 8–15%+ |
Source: Pattern Observer, Sketch Design Repeat, Chris Wilson Studio. Rates are on net/wholesale sales unless otherwise negotiated.
| Structure | Best When |
|---|---|
| Flat fee | Small brand, low expected volume, you want certainty |
| Royalty only | High-volume licensee you trust |
| Advance + royalties | Most common; guarantees floor income |
| Hybrid (fee + lower royalty) | Mid-size brand, moderate confidence |
Source: Jessica Jones Design, PatternsFROM Agency
Royalty rates for surface pattern design licensing typically range from 3% to 12% of net (or wholesale) sales, depending on product category, exclusivity, and designer experience. Rates at the higher end (8–12%) are more common with experienced designers or broad exclusive licenses. New designers often start at 5–7%. Pattern Observer reports a range of 5–12% of net sales as typical for this space.
An advance against royalties is an upfront payment — think of it as a prepayment on your future royalties, not a bonus on top of them. The licensee pays it before products go on sale. Once the product sells, royalties accumulate and are applied against the advance first. Only after the advance is fully "earned out" do you start receiving ongoing royalty checks. You keep the advance even if the product underperforms, but you won't see additional income until that threshold is crossed.
Art licensing agents typically charge 20–50% of the royalties or fees they secure on your behalf. The Graphic Artists Guild cites 30–50% as the common range. Pure Art Licensing (a UK agency) publicly states 25–35% depending on territory. The commission is deducted from what the licensee pays you — so a 7% royalty through a 30% agent leaves you with an effective 4.9% net royalty rate.
It depends on projected sales volume and your tolerance for uncertainty. A flat fee is safe, immediate, and certain — the right choice if you're skeptical of the licensee's sales projections or if the product is a small-run item. Royalties can pay significantly more if the product sells well, but pay nothing beyond the advance if it underperforms. Use the Flat Fee vs Royalty tab to compare both scenarios under optimistic, moderate, and conservative unit forecasts before deciding.
Royalties in surface pattern licensing are almost always calculated on net sales — i.e., gross revenue minus returns, discounts, and allowances — rather than gross sales. This is industry standard per Pattern Observer and PatternsFROM Agency. The specific deductions that constitute "net" vary by contract, so always confirm exactly what adjustments apply before signing. Using gross sales as the royalty base is less common but does occur, especially in smaller direct deals.
Yes, if your license is non-exclusive or category-limited. A non-exclusive license lets you license the same design to multiple brands simultaneously. A category-limited exclusive (e.g., "exclusive for bedding in North America") lets you license the same design for stationery or apparel elsewhere. A fully exclusive license — across all product categories and territories — prevents relicensing entirely and should command substantially higher fees or royalty rates to compensate for the lost opportunity.