{
  "slug": "distribution-cut-calculator",
  "title": "Music Distribution Cut Calculator",
  "heading": "Distribution Fee Comparison Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/distribution-cut-calculator",
  "summary": "Compare flat-fee vs percentage distributors on your actual revenue.",
  "description": "Flat-fee distributors (DistroKid, TuneCore, Amuse Pro) charge an annual subscription and keep 0% of royalties. Percentage-based distributors and label services take a cut of every dollar but usually charge nothing upfront. Which is cheaper depends entirely on your revenue volume — a bedroom artist with $50 a year in streams loses money on a $20/year flat plan relative to a free 15%-cut service, while an artist earning $5,000 a year comes out far ahead paying the flat fee. This calculator runs both models against your projected annual streaming revenue so you pick the actual cheaper option instead of the one with better marketing.",
  "formula": "Flat-fee net = revenue − annual subscription; percentage net = revenue × (1 − cut %).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=distribution-cut-calculator",
  "inputs": [
    {
      "id": "revenue",
      "label": "Projected annual streaming revenue",
      "kind": "number",
      "hint": null,
      "default": 800,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "flatFee",
      "label": "Flat distributor annual fee",
      "kind": "number",
      "hint": null,
      "default": 22,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "pctCut",
      "label": "Percentage distributor cut",
      "kind": "number",
      "hint": null,
      "default": 15,
      "unit": "%",
      "min": 0,
      "max": 50
    }
  ],
  "outputs": [
    {
      "id": "better",
      "label": "Cheaper model for you",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "flatNet",
      "label": "Net with flat-fee distributor",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "pctNet",
      "label": "Net with percentage distributor",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "difference",
      "label": "Difference in your pocket",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakeven",
      "label": "Revenue where they're equal",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Projected annual streaming revenue: 800 $",
      "Flat distributor annual fee: 22 $",
      "Percentage distributor cut: 15 %"
    ],
    "outputs": [
      "Cheaper model for you: Flat fee",
      "Net with flat-fee distributor: $778.00",
      "Net with percentage distributor: $680.00",
      "Difference in your pocket: $98.00",
      "Revenue where they're equal: $146.67"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter projected annual streaming revenue ($).",
      "Enter flat distributor annual fee ($).",
      "Enter percentage distributor cut (%).",
      "Read your cheaper model for you on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "revenue": 480,
        "flatFee": 13,
        "pctCut": 9
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "revenue": 800,
        "flatFee": 22,
        "pctCut": 15
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "revenue": 1280,
        "flatFee": 35,
        "pctCut": 24
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Is a flat-fee distributor always better long-term?",
      "a": "Only once your revenue exceeds the breakeven point shown above. Below that revenue level, you're paying more in subscription fees than you'd lose to a percentage cut, which matters for artists just starting out with a handful of releases and low stream counts."
    },
    {
      "q": "What about multi-year subscription costs?",
      "a": "Flat-fee plans usually bill annually per artist or per unlimited-release plan, so multiply the annual fee by however many years you plan to keep music live before comparing. A three-year commitment triples the flat-fee side of this math."
    },
    {
      "q": "Do any distributors charge both a fee and a cut?",
      "a": "Yes — some label services and 'plus' tiers charge an upfront fee plus a reduced percentage cut for extra services like playlist pitching or sync licensing support. Model those as a percentage distributor with the effective combined cost as your cut rate."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/streaming-royalty-payout",
    "https://www.revenuelab.fyi/toolbox/mechanical-royalty-split"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Music Distribution Cut Calculator (https://www.revenuelab.fyi/toolbox/distribution-cut-calculator)"
}