AI Music Royalty & Generation Cost Calculator
Estimate royalties and creation costs. Model Google Lyria 3's 30-sec tracks and stream economics.
Google and Apple push AI music features — Lyria 3, 30-sec tracks. Model royalties vs generation cost.
Run Your Own Simulation
Adjust the inputs below. Results update instantly. No signup, no data saved — everything runs in your browser.
How We Calculate Royalties
Approximate $0.003 per stream (industry average — Spotify, Apple, others vary). Generation cost is user input. Net = Royalty − Gen cost. Formulas are illustrative — real rates depend on platform, territory, and deal structure. No APIs; all calculations in your browser.
Formulas
- Royalty = Streams × $0.003 (or your rate)
- Net = Royalty − Generation cost
- Breakeven streams = Gen cost ÷ $0.003
How much do artists earn per stream? Industry average is roughly $0.003–0.005. That means 1M streams ≈ $3K–5K. For AI-generated tracks, the question is: do royalties cover the cost to create? At $0.003/stream and $10 gen cost, you need 3,333 streams to break even. The calculator shows it in seconds.
What does AI music generation cost?
Tools like Google Lyria 3, Suno, Udio charge per track or per minute. Costs range from fractions of a cent to a few dollars. You input your estimate — the calculator shows breakeven and net at different stream levels. Model 30-sec clips, full tracks, albums.
The News Driving This Conversation
Google and Apple are pushing AI music features — Lyria 3, 30-second clips, custom lyrics and instrumentals. Creation is cheap. But can royalties cover the cost at scale? Model it. Enter stream count and gen cost — see net economics. The gap (or surplus) drives the business case.
Can AI music royalties cover generation cost? At low gen costs, yes — a few hundred streams can break even. At higher costs (e.g. full-track production), you need hundreds of thousands. The calculator gives you the exact breakeven. No guesswork.
Visual royalty breakdown
See royalty vs gen cost in a simple chart. At 100K streams: $300 royalty. Subtract $50 gen cost = $250 net. Scale to 1M: $3K − $50 = $2,950 net. The unit economics become obvious. Use it for pitch decks, business plans, or personal projects.
How to Interpret Your Results
Breakeven by generation cost (at $0.003/stream):
| Gen cost | Breakeven streams |
|---|---|
| $0.10 | approx. 33 |
| $1 | approx. 333 |
| $10 | approx. 3,333 |
| $100 | approx. 33,333 |
Takeaway: Low gen cost = easy breakeven. High gen cost = need viral scale. Use the calculator to set realistic targets. If breakeven is 100K streams and you’re doing 1K, you’re upside down. Adjust cost or strategy.
Who Should Use This Calculator
Artists and producers — understand AI music economics. Does the math work?
Labels and distributors — model unit economics. Set expectations for AI-generated catalogs.
AI music platform builders — price your product. What gen cost allows royalties to cover it?
Content creators — budget for AI tracks. Know breakeven before you scale.
Understand the unit economics of AI-generated content
One number: breakeven streams. Use it to decide: is this model sustainable? The calculator gives you that number in seconds.
Platform rate differences
Spotify pays ~$0.003–0.004 per stream. Apple Music often higher. YouTube lower. Our default uses a blended average. Adjust the rate in the calculator to match your primary platform. Breakeven shifts — higher rate means fewer streams needed to cover gen cost.
Catalog scale and long tail
One track needs X streams to break even. A catalog of 100 tracks needs 100X total — but streams spread across tracks. Model single-track economics first; then think about catalog. If each track needs 10K streams and you have 100, you need 1M total streams to cover creation cost. The calculator handles one track; scale in your head.
Frequently Asked Questions
Want a Deeper Analysis?
These calculators reveal opportunities. Our audit turns them into predictable revenue.
Get Your Free Growth Audit