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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Steam earns money from game sales by keeping a contractual share of revenue from purchases made through its store. The UK Competition and Markets Authority (CMA) reported that Valve introduced per-game tiers in December 2018: Steam’s share is 30% on the first $10 million, 25% on revenue from $10 million to $50 million, and 20% above $50 million. A developer’s actual payout is not simply that percentage of a game’s sticker price: Steam first accounts for applicable adjustments such as taxes, returns and chargebacks, then applies the developer’s contractual share. The CMA’s 2023 report describes the tiers; developers should check their signed Steam Distribution Agreement for their own terms.
How Steam earns revenue
Valve’s developer-facing platform earns a share of sales transacted through Steam. Steamworks, the tools and services developers use to configure and operate games or software on Steam, is described by Valve as free to use. Valve’s Steamworks documentation calls it a free suite of tools; this does not mean distribution is commission-free, because sales are subject to the partner’s revenue-share terms.
The commonly cited tier structure was introduced in December 2018, according to the CMA’s 2023 report. The thresholds apply per game and are marginal: passing a threshold does not retroactively apply the lower rate to revenue earned earlier.
| Per-game revenue band | Steam’s share | Developer’s share before other adjustments |
|---|---|---|
| First $10 million | 30% | 70% |
| Revenue from $10 million to $50 million | 25% | 75% |
| Revenue above $50 million | 20% | 80% |
These percentages describe the terms reported by the CMA, not a rate table displayed on the Steamworks finance pages reviewed. The partner’s signed agreement governs its specific terms. The tiers also do not reveal Steam’s total income or Valve’s profit: those depend on sales and costs beyond the commission percentages.
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How a Steam sale becomes a developer payout
Steam calculates a partner’s payable amount from net revenue, not by multiplying the game’s advertised price by a fixed percentage. Valve’s Reporting and Payments FAQ and Taxes FAQ describe the calculation and related adjustments.
- Start with gross revenue. Steam’s ad-hoc sales information reports gross revenue before applicable adjustments. Gross revenue can include VAT and sales tax where applicable.
- Subtract applicable adjustments. The monthly Steam Sales Report deducts items such as taxes, returns and chargebacks to arrive at net revenue.
- Apply the contractual revenue share. Valve multiplies net revenue by the partner’s applicable share to calculate the amount payable before any required withholding.
- Account for tax withholding. For U.S.-source income, Valve says withholding may range from 0% to 30%, depending on information provided in the tax interview. Treaty eligibility and tax-identification details can affect the rate. This is tax withholding, not an extra Steam commission.
- Receive payment by electronic transfer. Valve pays U.S. banks by ACH and banks outside the United States by USD SWIFT wire.
For example, a $10 sale does not necessarily produce a $7 developer payment under a 70% share: the amount used in the revenue-share calculation may be lower after applicable adjustments, and required withholding may reduce the cash paid. The Steam Sales Report is the relevant place to reconcile reported sales and revenue share against a bank deposit.
When Steam pays and what can affect the deposit
Valve says it pays by the 30th of the month after sales, once the partner has completed and verified its tax and bank information. Payments are monthly; Valve says it cannot make off-cycle payments. It may hold a payment until the partner has earned at least $100, since transfer and receiving-bank costs can make smaller transfers impractical. Payments are in U.S. dollars. For partners outside the United States, intermediary or receiving-bank fees may affect the amount that arrives.
Withholding, tax reporting and bank fees can therefore make the deposit differ from a simple calculation based on consumer spending. The applicable tax treatment depends on the partner’s circumstances and jurisdiction; Valve’s country-specific tax guidance may change as laws take effect.
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Steam Direct’s upfront fee
Valve lists a Steam Direct fee of $100 USD, or equivalent, for each new app submitted for distribution. The fee is non-refundable, but Valve says it can be recouped in a later payment once the product reaches at least $1,000 in Adjusted Gross Revenue from Steam Store or in-app purchases. Recoupment appears as a separate line item; Valve may withhold it if the deposit is charged back, refunded or found fraudulent. See the Steam Direct Fee documentation for the conditions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What these figures do—and do not—show
The percentages explain how Steam’s reported commission tiers divide qualifying per-game revenue; they do not establish Steam’s overall revenue, total sales, or Valve’s profit. Nor do they guarantee what a particular developer will receive: the revenue basis, applicable adjustments, contract terms, tax withholding and transfer fees all matter. For a particular title, use its Steam Sales Report and the signed Steam Distribution Agreement rather than treating the storefront price or a bank deposit as the calculation base.
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