Is your patent worth the investment? Enter your projections for three business scenarios and see whether the gross profit your patent protects clears the 100X ROI threshold.
Enter the average retail price, cost of goods sold (COGS) and units sold in year 1 for each scenario, then set your expected annual growth rate.
| Metric | Conservative | Most Likely | Optimistic |
|---|---|---|---|
| Avg. retail price ($) | |||
| COGS per unit ($) | |||
| Units sold, year 1 |
Projected annual growth in units: 100%
| Gross profit | Conservative / Most Likely / Optimistic |
|---|---|
| Year 1 | |
| Year 2 | |
| Year 3 |
Based on the average cost of the full patent process, including prior art research, application preparation, office action responses and monetization consulting. For planning purposes only; not legal advice.
Walk through your invention and business case with us in a free patent needs assessment.
Get a Free Patent AssessmentCraige Thompson’s rule of thumb is that a patent is worth pursuing when the gross profit it protects is at least 100 times the cost of obtaining it. This calculator uses a typical full patent-process cost of $20,000, so the threshold is $2,000,000 in accumulated gross profit.
It reflects the average cost of the full patent process, including prior art research, application preparation, office action responses and monetization consulting. Your actual cost depends on your invention.
The recommendation is based on the Most Likely scenario, projected over three years at the growth rate you set.
No. It is a planning tool to help you think about the business case for a patent. For advice on your specific invention, request a free patent needs assessment.
