Free Tool
Royalty Check Stub Decoder
Enter the numbers from your stub and watch a royalty payment flow from gross value down to the net check — one line at a time, so you can see exactly where the money goes.
The well's production for the period shown on the stub.
The owner decimal printed on the stub.
State tax on production; varies by state and product.
Gathering, processing, compression, transportation (lease-dependent).
What's on a royalty check stub
A royalty statement looks intimidating because it crams a lot of columns into a small space — but it's really one calculation repeated for every well and product. Decode one line and you can decode them all.
The chain, step by step
- Volume × Price — what the well's production sold for in the period.
- × Your decimal interest — your decimal share of that value, giving your gross value.
- − Severance / production tax — the state's severance tax on production, which varies by state and product.
- − Post-production deductions — post-production costs like gathering, processing, compression, and transportation, if your lease allows them.
- = Net check — what actually reaches your account.
Why the net is lower than you'd expect
Most surprise over a "small" check comes from this gap between gross and net. Taxes are usually unavoidable; deductions depend entirely on your lease language and your state's law. If you want to see why a check changed month to month, read why your royalty check went down, and for a column-by-column tour of the statement itself, see how to read your royalty check stub.
Estimate vs. decode
This tool decodes a payment you already have. To project a future check from volume and price, use the Royalty Income Estimator; to find the decimal in the first place, use the Division Order Calculator.
Frequently asked questions
How do I read a royalty check stub?
It repeats one calculation per well: volume × price × your decimal = gross value, then taxes and any post-production deductions are subtracted to reach your net.
Why is my check smaller than the gross value?
The gross is before deductions. Severance/production taxes and lease-dependent post-production costs reduce it to the net you actually receive.
What are post-production deductions?
The costs to move oil or gas from the wellhead to a sales point — gathering, compression, processing, transportation. Whether they can be deducted depends on your lease and state law.
This decoder is an educational reference and uses simplified, single-well math. Real statements can include multiple products, prior-period adjustments, and owner-specific tax withholding. Always verify against your actual statement and lease.
Want help reconciling your real statements across wells and months? See Pro.