Oil and gas royalty calculator
This oil and gas royalty calculator works out your decimal interest from your acreage and lease royalty, then estimates what a month of production pays you after taxes and deductions. It runs in your browser and doesn't ask for your details.
1. Your decimal interest
2. One month of production
Estimated net royalty for the month
$2,310
Gross $2,432 · taxes $122 · deductions $0 · about $27,721 a year at this rate
How the royalty calculator works
The royalty calculator follows the same arithmetic operators use to pay you. First it works out your decimal interest: your net mineral acres divided by the acres in the drilling unit, times your lease royalty rate. Then it multiplies that decimal by the value of the oil and gas the well sold in a month, and subtracts your share of production taxes and any deductions your lease allows.
The figures filled in are an illustration, not a forecast: 10 net mineral acres in a 640-acre unit with a 3/16 royalty, the same example our guide on how to read a royalty check walks through line by line. Replace them with the numbers on your own check stub for an estimate of your own oil and gas royalty.
Not sure of your acreage? Our guide to net mineral acres and net royalty acres shows how to find it from your deed.
How to calculate oil and gas royalties by hand
- Work out your decimal interest. Divide your net mineral acres by the acres in the drilling unit, then multiply by your lease royalty rate. Or copy the decimal printed on your royalty check stub or division order.
- Multiply by the value of what the well sold. Multiply the barrels of oil and thousand cubic feet of gas sold in a month by the price received for each. Your decimal times that value is your gross royalty.
- Subtract taxes and allowed deductions. Take off your share of state severance and production taxes, plus any post-production deductions your lease allows. What is left is your net monthly royalty.
Worked through with the example above: 10 ÷ 640 = 0.015625, and 0.015625 × 0.1875 = 0.0029296875, which a check stub shows rounded as 0.00292969. Twelve thousand barrels at $65 is $780,000 of oil; your share before taxes is $780,000 × 0.00292969, about $2,285. Gas adds its own line the same way. Taxes and deductions then come off to give the net. These prices are placeholders for the arithmetic, not current market prices.
Where each number is on your royalty check
Every input in this royalty calculator is printed on a typical stub: the volume and price per product, your owner decimal, the taxes withheld, and any deductions. In Texas, payors must show most of these items on the stub by law. Production taxes vary by state; see severance tax by state for the rate that applies to your minerals, and taxes on royalty income for how the payments are reported on your return.
Why your real check can differ from the royalty calculator
- Timing. Checks pay for production from earlier months. In Texas the first payment is due within 120 days after the end of the month of first sale, then within 60 days for oil and 90 days for gas after the month of sale.
- Separate products. Natural gas liquids and condensate are often paid on their own lines at their own prices.
- Deductions. Gathering, compression or processing costs come off only if your lease allows them. Some leases are cost-free.
- Decline. New shale wells produce most in their first years, so volumes fall month to month. Our guide to oil and gas royalties explains why checks change.
From monthly royalty to sale value
Buyers of producing minerals usually price an offer as months of your net royalty: a common rule of thumb is 36 to 60 months, more when new wells are coming and less when wells are declining fast. Put your net monthly figure into the mineral rights value calculator for a range, read how to sell a royalty interest, or get written offers from up to 3 buyers active in your county. It's free and you can still keep everything.
Royalty calculator questions
How do I calculate my oil and gas royalty?
Multiply your decimal interest by the volume the well sold and the price received, then subtract your share of production taxes and any deductions your lease allows. The decimal is your net mineral acres divided by the unit acres, times your royalty rate. This royalty calculator does each step for you.
Where do I find my decimal interest?
It is printed on your royalty check stub (often labelled owner interest or decimal) and on the division order the operator sent before your first payment. If you know your net mineral acres, unit size and lease royalty, the royalty calculator above works it out.
Why is my real check different from the royalty calculator?
Checks pay for production from earlier months, prices differ by well and buyer, gas may be paid separately from natural gas liquids, and deductions depend on your lease. Use the numbers from your own stub for the closest match.
What is my royalty worth if I sell it?
Buyers usually price producing minerals as a number of months of net royalty income, often 36 to 60 months, adjusted for decline and new drilling. Enter your net monthly royalty in the mineral rights value calculator for a range, then get written offers to see the real number.
Royalty calculator sources
Last reviewed October 14, 2026. This page is general information, not legal, tax or investment advice. Facts come from the official sources listed above; confirm anything that matters to your sale with a qualified professional.
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