A song earns performance royalties.

How much belongs to the songwriter?

How much belongs to the publisher?

And what happens when a publishing administrator takes a commission?

These are different questions, and the answer depends on the royalty type and collection system.

A simple calculation can help you understand the basic economics.

Performance royalties can be divided into two shares

In a common performance-rights accounting model, royalties are divided between:

  • Writer share
  • Publisher share

A simplified example uses a 50/50 division.

However, different societies and royalty categories can have different accounting arrangements.

Do not apply the same formula blindly to mechanical royalties, master royalties or every international collection.

Example: £100 in eligible performance royalties

Assume the relevant accounting system allocates:

Writer share: £50

Publisher share: £50

Total: £100

Suppose you wrote the entire composition and control both sides of the publishing rights.

You may be entitled to receive the writer share through the appropriate society.

A publishing administrator may collect the publisher share according to its mandate.

Add an administration commission

Assume the administrator takes 15% of the publisher-share amount it collects.

Publisher share collected: £50

15% fee: £7.50

Net publisher share: £42.50

If you separately receive the full £50 writer share, your combined illustrative income would be:

£50 + £42.50 = £92.50

This calculation assumes the stated allocation, full collection, no other deductions and sole ownership.

It is not a guaranteed royalty payment.

What if you own half the composition?

Suppose two writers own 50% each.

The same £100 performance royalty is generated.

In a simple proportional model, each writer controls an economic interest equivalent to £50 of the total royalty before applicable administration costs.

Each writer may have a separate publisher or administrator.

The actual payment path depends on the registration and society arrangements.

What should a calculator include?

A useful songwriter calculator should ask for:

  • Total eligible royalty amount
  • Composition ownership percentage
  • Writer-side allocation
  • Publisher-side allocation
  • Administration commission
  • Other applicable deductions

It should then show:

  • Writer-side entitlement
  • Publisher-side entitlement
  • Estimated administration fee
  • Estimated net amount

Don’t confuse this with master royalty splits

Distributor revenue sharing normally concerns the sound recording.

A producer might receive 10% of recording income and 25% of songwriting income.

Those percentages apply to different rights.

What about mechanical royalties?

Mechanical royalties have their own licensing and collection systems.

Do not assume the 50/50 performance-share illustration applies to every mechanical payment.

Check the relevant administrator’s terms and reporting.

Final thoughts

A publishing calculator is useful when it makes clear what is being calculated.

Start with the right.

Then the ownership.

Then the collection.

Then the fee.

That gives a songwriter a much clearer picture than simply looking at the total royalty amount.