IP Valuation Calculator
Estimate patent/trademark portfolio value using the relief-from-royalty method.
Legal Disclaimer
This calculator provides general estimates only and does not constitute legal advice. Laws, regulations, and court procedures vary significantly by jurisdiction. Consult a licensed attorney in your area for advice specific to your situation.
Inputs
Results
Portfolio Value
$2,214,955.69
≈ 5 average U.S. homes
Per Patent/TM Value
$442,991.14
≈ 11 Teslas
How to Use This Calculator
- Enter annual revenue attributable to the IP and a market-based royalty rate (%).
- Set expected revenue growth rate (%), discount rate (%), and remaining IP life in years.
- Enter the number of patents or trademarks in the portfolio.
- Review Portfolio Value, Per Patent/TM Value, Annual Royalty Savings, and Implied Multiple.
How the result changes with Annual Revenue from IP
| Annual Revenue from IP | Portfolio Value | Per Patent/TM Value |
|---|---|---|
| $10,000,000.00 | $4,429,911.39 | $885,982.28 |
| $35,000,000.00 | $15,504,689.85 | $3,100,937.97 |
| $65,000,000.00 | $28,794,424.02 | $5,758,884.80 |
| $90,000,000.00 | $39,869,202.48 | $7,973,840.50 |
What each input means
- Annual Revenue from IP
- Annual revenue attributable to the intellectual property.
- Royalty Rate
- Market-based royalty rate for comparable IP.
- Revenue Growth Rate
- Expected annual revenue growth rate.
- Discount Rate
- Risk-adjusted discount rate for present value.
- Remaining IP Life (Years)
- Remaining useful life of the intellectual property.
- Number of Patents/Trademarks
- Total number of IP assets in the portfolio.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersAnnual Revenue from IP = 5000000, Royalty Rate = 5, Revenue Growth Rate = 5, Discount Rate = 12 = 6 input(s) provided
- Calculate Portfolio ValuePortfolio Value2214955.69 = $2,214,955.69
- Calculate Per Patent/TM ValuePer Patent/TM Value442991.14 = $442,991.14
- Calculate Annual Royalty SavingsAnnual Royalty Savings250000 = $250,000
- Calculate Implied MultipleImplied Multiple8.9 = 8.9
Engine last updated .
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