Producer Points and Recoupment Calculator
See what a producer's points could pay, and how much income it takes for a fee to be earned back. By Music Manager Resource.
Points and Recoupment Calculator is part of the Studio section of Music Manager Resource.
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What points are
Points are a percentage of what a recording earns, paid to a producer on top of any fee. The idea is simple, but the result depends on the details: a percentage of what, starting when, and after which costs have come off. This calculator lets you test those numbers so you can see what a deal could mean before talking it through with a lawyer.
What recoupment means
Recoupment means earning back money that was paid up front. If a fee counts as an advance, the producer's royalties build up against that fee first, and nothing further is paid until they pass it. For example, with a fee of 2,000 and 3 points on net income, the royalties reach 2,000 once net income reaches about 66,667. After that, the producer gets 3 percent of further net income.
What net income means here
This calculator uses net income, meaning what the client receives after distributor or label fees. Many real deals are worked out differently, and some deduct other costs or apply to a different figure. That can change the result a lot, so always read how your own contract defines income. A small difference in that definition can matter more than a difference in the percentage.
Tracks and streams
If a producer only worked on some of the tracks, you can enter how many, and the rate is reduced in proportion. You can also enter your own income per 1,000 streams, taken from your statements, to see roughly how many streams it would take. Rates vary by service, country and the type of account, so this tool does not assume one for you.
What this tool does not do
These results are illustrations based on the figures you enter. They do not include tax, manager commission, other royalty shares or anything else in a contract. Use them to prepare better questions, then take proper advice. Our practice Music Producer Contract shows the wording these ideas appear in.