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TOMPW

Free planning tool

IP Cost & Licensing Estimator

Licence fees are only the visible part of IP cost. This model adds per-die royalties, annual support and the integration effort your team will spend, then compares the total against building the function in-house — with the break-even volume spelled out.

Licence basis

One-time licence fee per block; royalties optional.

Total IP cost of ownership

$831,000

$1.385 per unit over 600,000 units · 23.1% of ASP

Upfront licence

$450,000

Royalties

$30,000

Support

$243,000

Integration

$108,000

Royalty % of ASP

0.83%

Program volume

600,000

Internal build alt.

$648,000

Break-even volume

-3,060,000

units over program

Buy vs. build

Internal build would be cheaper by $183,000 — if your team can actually deliver it on schedule.

Illustrative only. Licence fees, royalty tiers and support terms vary widely by vendor, core complexity and node — use as a sanity check, then confirm against a scoped TOMPW quote.

Export

Disclaimer: This tool and its outputs are for reference and preliminary evaluation only, not design, manufacturing, qualification or commercial approval; verify all results with the responsible supplier or engineer.

What feeds the model

  • Total IP cost = upfront licence + royalties (rate × program volume) + annual support + integration effort cost.
  • Buy vs. build compares that total with the loaded cost of the engineering months an internal build would take.
  • Break-even volume is where the two paths cost the same — above it, a paid-up or capped deal usually beats a per-die royalty; below it, royalties preserve cash.

Negotiating a real IP bundle? Talk to our team — we help teams scope the IP list before the licence terms are signed.

These are industry reference ranges, not a quotation and not an offer.

  • Every band on this page is deliberately wide. It is published so you can sanity-check whether a programme is realistic before you write to anyone — not so you can budget against it.
  • Actual pricing moves with the season and with capacity. Foundry and OSAT utilisation changes month to month, and a window that is cheap in a soft quarter can be materially more expensive in a tight one.
  • Mask, substrate, leadframe, gold, copper and tester-time costs all move independently of the node you chose.