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Steam Fee Calculator UK

Steam (Valve) takes 30 percent of game sales below the first lifetime-gross tier (about £8M-equivalent per title), 25 percent in the middle tier (about £8M to £40M-equivalent), 20 percent above the upper tier (about £40M-equivalent). Tier thresholds are set in US dollars per title. Calculator below shows developer take-home for each tier.

Last verified: 25 April 2026 Source: Steamworks Partner documentation Next review: 25 October 2026
Inputs
Gross revenue —
Steam cut —
Total fees —
Developer take-home —
Effective fee % —
£19.99 game — below first tier
£19.99 sale · Standard 30% Steam fee

£19.99 × 30% = £6.00. Net £13.99 (70% retention). Standard Steam rate for indie titles below the first lifetime gross threshold per game. Most indie games never cross.

£19.99 game — mid tier reached
£19.99 sale · Mid-tier (25% rate)

£19.99 × 25% = £5.00. Net £14.99 (75% retention). Mid-tier kicks in once a SINGLE TITLE crosses the first lifetime gross threshold. Per-title, not per-developer. Very few indie games cross.

£19.99 game — top tier (rare)
£19.99 · Top tier (20% rate)

£19.99 × 20% = £4.00. Net £15.99 (80% retention). Top tier — only a handful of indie games each year cross the upper threshold. Studios at this level have direct relationships with Valve.

Steam (Valve) is the dominant PC gaming distribution platform. Steam’s fee tiers reward title-level success: as a single game’s lifetime gross crosses thresholds, the rate drops from 30% to 25% to 20%. Calculator above shows take-home at each tier.

The three Steam tiers (per-title)

Lifetime gross of THE GAME Steam fee Developer keeps
Below first tier (about £8M-equivalent US dollars) 30% 70%
First to upper tier (about £8M-£40M US dollars-equivalent) 25% 75%
Above upper tier (about £40M-equivalent US dollars) 20% 80%

Crucial: tiers are PER-TITLE, not per-developer. A studio with five games each at lifetime £5M stays at 30% on all five. The tiers reward single-title hit success.

Indie reality check

Most indie games never cross the first tier. The threshold is achieved by maybe 1-2% of Steam releases. The top tier (about £40M-equivalent) is reserved for breakout hits — Stardew Valley, Hades, Vampire Survivors level success. For 95%+ of UK indie devs, Steam’s effective rate is 30% forever.

Steam vs Epic Games Store

Aspect Steam Epic Games Store
Standard rate 30% (95%+ of titles) 12%
User base 100M+ active 50M+ active (gifted via free games)
Search/discovery Excellent (algorithm + curators) Limited
Community features Workshop, achievements, reviews Limited
Wishlist functionality Best-in-class Decent
Cloud saves, voice, friends All built-in Limited
Sales / featured slots Frequent + impactful Limited

Epic’s 12% is mathematically attractive but Steam’s 100M+ users + ecosystem features typically justify the 18pp premium. Most successful UK indies dual-publish: launch on Steam (primary), add Epic later when free-game promotion is available.

Steam Direct submission fee

about £80-equivalent (one-off submission fee) per title to publish to Steam. Refundable after the title earns about £800-equivalent lifetime gross. Designed to filter low-effort submissions.

For a £4.99 base-priced game: about £800-equivalent = ~160 sales at full price. Most submitted titles don’t reach this. Treat as sunk cost.

Sales and discount cycle

Steam runs four major seasonal sales per year (Summer, Autumn, Winter, Spring) plus monthly Steam Daily Deals. Discount expectations:

  • Launch: 0% (new release)
  • 6 months in: -25% during seasonal sales
  • 12 months in: -50% during sales
  • 24 months in: -75% during sales
  • 3+ years: -90% in deep-discount sales

Plan revenue forecasts knowing 30-50% of lifetime sales will come at discounted prices. Worth pricing higher at launch to allow for discount cycle.

UK tax considerations

  • Steam revenue is UK trading income (Self Assessment)
  • Steam fees fully deductible
  • Steam Direct submission fee deductible
  • UK VAT handled by Steam (no need to register for VAT solely for Steam sales)
  • US withholding tax: 30% by default; submit W8-BEN form claiming UK tax treaty residency to drop to 0%
  • Foreign tax credit available for any withholding that does occur

W8-BEN submission is critical — without it, US tax authorities withhold 30% of all your Steam sales (regardless of customer country). With W8-BEN, withholding drops to 0% as UK residents are protected by the UK-US tax treaty. UK accountants familiar with international royalties can submit on your behalf if you’re not comfortable.

What this calculator doesn’t model

  • about £80-equivalent Steam Direct submission fee per title (one-off, partially refundable)
  • Steam sale discounts (typically 30-50% of lifetime revenue at discounted prices)
  • Steam Workshop user-generated content revenue split
  • Steam Trading Cards / inventory item economy
  • Regional pricing differences
  • Refund clawbacks (Steam refunds eligible within 2 hours play / 14 days)
  • Featured promotional slot fees
  • Currency conversion when UK users gift internationally

For PC indie game tax basics, see Side hustle tax calculator. For mobile game equivalent (App Store / Google Play), see Apple App Store calculator and Google Play calculator. For developer-friendly alternative platform, see itch.io calculator.

Common mistakes
  • Treating the tiered rates as cumulative across your portfolio. Steam tiers are PER-TITLE, not per-developer. A studio with five games each at £5M lifetime gross stays at 30% on all five — not 25% on the cumulative total. Tiers apply to single-title lifetime gross.
  • Forgetting Steam’s regional pricing. Steam encourages developers to set local prices for each region. UK price is independent of US price. Be deliberate — don’t just convert FX. Steam suggests prices based on regional purchasing power.
  • Underpricing during Steam sales. Steam sales are essential for visibility but discount aggressively. -50% / -75% / -90% discounts compress margins fast. Plan launches/promotions with discount cycle in mind.
  • Skipping Steam Direct’s submission fee miscalculation. about £80-equivalent (one-off submission fee) per game submission to Steam Direct. One-off, refundable after about £800-equivalent lifetime gross of that title. For a £4.99 game, refund threshold is hit at ~200 sales. Most submitted games never recoup.
  • Forgetting Steam Workshop revenue split. User-Generated Content sold through Steam Workshop has its own revenue split (developer / Workshop creator / Valve). Different from base game sales. Workshop economics are separate.
  • Not budgeting for Steam Capsule art. Game artwork (capsule, header, library, store page assets) is required for store visibility. Either DIY or budget £500-£3,000 for professional art assets. Distinct from the £80 Steam Direct fee.
  • Pricing in US dollars when UK customers see GBP. Steam shows UK customers GBP prices set by you (not auto-converted). If you forget to set UK price, it defaults from US dollars via Valve’s recommended exchange — often 10-15% off market rate.
What this calculator doesn't cover
  • Doesn’t include the about £80-equivalent (one-off submission fee) Steam Direct submission fee per title (one-off, refundable after about £800-equivalent lifetime gross).
  • Doesn’t model Steam sale discount impact on margin.
  • Doesn’t include Steam Workshop revenue splits for UGC.
  • Doesn’t include Steam Trading Cards/inventory item economy.
  • Doesn’t model regional pricing differences across countries.
  • Doesn’t include Steam Wallet currency exchange (when UK users gift to international friends).
  • Doesn’t include payment processor fees (Valve covers these on Steam’s side).
  • Doesn’t model refund clawbacks (Steam allows refunds within 2 hours of play / 14 days of purchase — clawback Valve’s commission).
  • Doesn’t include Marketing/promotion costs (Steam Daily Deals, Featured slots, etc.).

Frequently asked questions

Are Steam tiers per-title or per-developer?

Per-title (per individual game). A studio with multiple games each below the first tier stays at 30% on all of them. Tiers reset for each new game release. The threshold is calculated on lifetime gross of the specific title.

How likely is my game to cross the first tier?

Very low for indie games. The first lifetime gross tier (about £8M-equivalent in US dollars per title) is achieved by maybe 1-2% of Steam releases. Top tier (£40M-equivalent) is reserved for breakout indie hits and AAA titles. Most indie games stay at 30% rate forever.

How does Steam compare to Epic Games Store?

Epic charges 12% (vs Steam 30% for most indie titles). Significantly better for developers on paper. BUT Epic’s user base is smaller and primarily acquired via free-game giveaways. Steam’s 100M+ active users + community features (workshop, achievements, reviews) often justify the 18pp premium for visibility. Most UK indies dual-publish.

What's the Steam Direct fee?

about £80-equivalent (one-off submission fee) one-time fee per title submission to Steam. Refundable after the title earns about £800-equivalent lifetime gross. Designed to filter out low-effort submissions. Most professional indie devs treat as a sunk cost; refunded ~30-50% of the time.

Are Steam fees tax-deductible in the UK?

Yes — fully deductible against UK trading income. Steam supplies year-end revenue summaries via Steamworks for accounting. Withholding tax may apply for non-US developers (Valve withholds 30% US tax unless you submit a W8-BEN form claiming UK residency under the UK-US tax treaty — drops to 0%). UK indie devs SHOULD submit W8-BEN to recover withheld tax via UK foreign tax credit.

How does Steam handle UK VAT?

Steam handles VAT collection and remittance for the developer. Steam shows UK customers VAT-inclusive prices; remits VAT to HMRC; pays developer net of VAT. UK developer doesn’t need to register for VAT solely for Steam sales (Steam acts as the seller of record under EU/UK VAT rules).

What about Steam Workshop user-generated content?

Separate revenue split. Workshop creators get a %, Valve takes a cut, base-game developer gets a cut. Specific split varies by game (set by developer when enabling Workshop monetisation). Outside this calculator’s scope.

About this calculator. Maintained by Jordan — a UK seller and creator who actually uses these platforms (Etsy, eBay, Vinted, DistroKid). Built to be accurate, mobile-fast, and honest about its limits. Spot a bug? Email hello@payoutmath.co.uk.