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Steam makes money from games sold through its storefront by keeping a share of each game’s revenue. The UK Competition and Markets Authority (CMA) reported that Valve introduced a tiered arrangement in December 2018: a 30% share on a game’s first $10 million in revenue, 25% on the portion between $10 million and $50 million, and 20% above $50 million. Those percentages are not simply deducted from a game’s sticker price: a developer’s share is calculated from net revenue after applicable adjustments, and the amount ultimately received can also be affected by tax withholding and bank fees.
How Steam earns revenue from game sales
Steam’s primary developer-facing monetization mechanism is its contractual share of sales made through the platform. Valve describes Steamworks as a free suite of tools and services developers can use to configure, manage, and operate games or software on Steam; it is separate from the revenue share on sales. (Valve’s Steamworks documentation)
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The CMA’s 2023 final report describes per-game tiers that Valve introduced in December 2018. They are marginal tiers: each rate applies to the revenue within its stated band, rather than resetting the rate on earlier revenue when a game passes a threshold. The Steamworks finance pages reviewed explain how payments are calculated but do not themselves publish these tier percentages; a developer’s signed Steam Distribution Agreement governs that partner’s specific terms.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errors| Per-game revenue band | Share attributed to Valve | Share remaining before other deductions |
|---|---|---|
| First $10 million | 30% | 70% |
| From $10 million to $50 million | 25% | 75% |
| Above $50 million | 20% | 80% |
These are the tiers reported by the UK Competition and Markets Authority in 2023, describing terms introduced in December 2018. They are not a guarantee of the precise terms in any individual developer’s contract.
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How a sale becomes a developer payment
Steam’s calculation begins with sales revenue, not the price displayed on a store page. The reporting and tax FAQs describe this sequence:
- Gross revenue: Steam’s ad-hoc sales information reports gross revenue before applicable adjustments.
- Adjustments to net revenue: The monthly Sales Report accounts for applicable items such as taxes, returns, and chargebacks. Gross revenue can include VAT or sales tax where applicable.
- Revenue share: Valve applies the partner’s contractual revenue-share percentage to net revenue to calculate the amount payable before applicable withholding taxes.
- Withholding: Tax withholding may reduce the amount paid. Valve says withholding on U.S.-source income can range from 0% to 30%, depending on information supplied in the tax interview; treaty eligibility and tax identification details can affect the rate. This is tax treatment, not an additional Steam commission.
- Transfer: Valve pays by electronic funds transfer: ACH for U.S. banks and USD SWIFT wires for banks outside the United States.
Valve explains the revenue calculation in its Reporting and Payments FAQ and Taxes FAQ. The tax FAQ’s country-specific information can change as laws take effect, so the applicable treatment depends on the partner’s circumstances and current tax rules.
When Steam pays and what can change the deposit
Valve says it pays by the 30th of the month following sales, once the partner’s bank and tax information has been completed and verified. Payments are monthly; Valve says it cannot make off-cycle payments. It may hold payment until the partner has earned at least $100. Payments are in U.S. dollars, and banks or intermediary banks may charge fees, particularly for international SWIFT transfers. These procedures and the minimum are described in Valve’s Reporting and Payments FAQ.
For accounting, compare the Steam Sales Report with the bank deposit. The report shows the revenue-share calculation; withholding, tax reporting, and transfer fees can affect cash received or the amounts shown on annual tax forms. A deposit therefore should not be treated as a direct percentage of consumer spending.
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Steam Direct’s fee for submitting an app
Valve currently lists a Steam Direct fee of $100 USD, or the equivalent, for each new app submitted for distribution. It is non-refundable, but Valve says it can be recouped in a later payment once the product has at least $1,000 in Adjusted Gross Revenue from Steam Store or in-app purchases. Recoupment appears as a separate line item; payment may be withheld if the deposit is charged back, refunded, or found fraudulent. See the Steam Direct Fee documentation for current terms.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What these figures do—and do not—tell you
The tier figures explain the reported platform share for game revenue under terms introduced in 2018; they do not establish Steam’s total sales, Valve’s company-wide income, or Valve’s profit. The cited finance documents describe developer reporting and payments, and the CMA report describes the tiers. They do not quantify Valve’s operating costs or overall profit. To estimate a specific developer’s proceeds, use the contract, Steam Sales Report, applicable adjustments, tax interview outcome, and payment records rather than applying a single percentage to the game’s retail price.
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