Advance recoupment calculator.
Advance recoupment is the amortization of an upfront advance against earned royalties — no cash royalty is payable until earn-out. Enter the advance, what has recouped, the rate, and your expected run rate — see months to earn-out in real time. No signup, no email.
The inputs above, explained.
Advance
Upfront payment from licensee to licensor against future earned royalties — usually non-refundable.
Recoupment
The amortization of the advance: each period's earned royalties reduce the outstanding balance instead of being paid as cash.
Earn-out
The point when cumulative earned royalties exceed the advance — royalties become payable as new dollars.
Royalty rate
The percentage applied to net sales to calculate earned royalties. Licensed apparel rates typically range 8–20%.
More calculators and related resources.
Royalty calculator
Gross sales, deductions, rate, and advance balance to net royalty due — the base calculation.
MG shortfall calculator
Project minimum-guarantee positions before settlement turns a shortfall into a surprise.
Advance recoupment — the platform
Multi-licensor advance tracking, per-period recoupment history, and earn-out forecasting per agreement.
How advance recoupment works
What is advance recoupment?
Advance recoupment is the amortization of an upfront advance payment against earned royalties. When a licensee pays an advance at contract signing, each period's earned royalties reduce the outstanding advance balance instead of being paid as cash — until the advance is fully recouped.
What is the earn-out point?
The earn-out point is when cumulative earned royalties exceed the original advance. Before earn-out, earned royalties amortize against the advance and no cash royalty is payable. After earn-out, royalties are payable to the licensor as new dollars each period.
How do you forecast an earn-out date?
Divide the remaining advance balance by the expected monthly earned royalty (expected monthly net sales × royalty rate). The result is the number of periods until cumulative earned royalties exceed the advance. The forecast moves with the sales run rate, so it should be refreshed as actuals post.
What happens if the advance never recoups?
If cumulative earned royalties never reach the advance by the end of the term, the unrecouped balance is typically not refundable — advances in licensing are usually non-refundable prepayments against royalties. An advance trending toward unrecouped at term end is a signal worth surfacing early, both for forecasting and for renewal negotiation.
This forecasts one advance. Royalty Reporting tracks every advance, every period.
Per-agreement advance registers, recoupment applied automatically at calculation time, and earn-out forecasts that update with every sale.