Steam earns money from game sales by keeping a contractual share of revenue from transactions on its store. A UK Competition and Markets Authority report says the per-game tiers introduced by Valve in December 2018 are 30% on the first $10 million, 25% on revenue between $10 million and $50 million, and 20% above $50 million. Those are marginal tiers: crossing a threshold does not change the rate on revenue below it. A developer’s payout is not simply that share of a game’s listed price; Steam first accounts for applicable adjustments such as taxes, returns, and chargebacks, and withholding taxes may further reduce the cash paid to the developer.
How Steam’s revenue share works
Valve describes Steamworks as a free suite of tools and services developers can use to configure, manage, and operate games or software on Steam. The developer-facing way Steam monetizes sales on its storefront is through the revenue share set out in the Steam Distribution Agreement. The tiers below are reported by the UK Competition and Markets Authority (CMA), which says Valve introduced them in December 2018; the Steamworks finance pages reviewed explain payment calculations but do not themselves display the tier percentages. A developer’s signed agreement determines the terms that apply to that partner.
| Per-game revenue band | Valve’s share | Developer share before other adjustments |
|---|---|---|
| First $10 million | 30% | 70% |
| Revenue between $10 million and $50 million | 25% | 75% |
| Revenue above $50 million | 20% | 80% |
These percentages describe the tier structure the CMA attributed to Valve’s December 2018 announcement. The tiers are marginal: for example, after a game passes $10 million, the 25% rate applies to the revenue in the $10 million–$50 million band, not retroactively to the first $10 million. The CMA describes the bands in its 2023 Mobile Ecosystems: Final Report.
This is not a complete accounting of Valve’s company-wide income or profit. The cited sources establish Steam’s developer-facing sales share and payment mechanics, but do not quantify Valve’s total Steam revenue, operating costs, or overall profit.
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How a Steam sale becomes a developer payout
Steam calculates the amount payable from net revenue, not by applying a fixed percentage to the game’s sticker price. Valve’s Reporting and Payments FAQ and Taxes FAQ describe the process:
- Start with gross revenue. Steam’s ad-hoc sales information reports gross revenue before applicable adjustments.
- Subtract applicable adjustments. The monthly Steam Sales Report accounts for items such as taxes, returns, and chargebacks to calculate net revenue. Gross revenue can include VAT or sales tax where applicable.
- Apply the partner’s revenue share. Valve multiplies net revenue by the contractual share to calculate the amount payable before applicable withholding taxes.
- Account for tax withholding. For U.S.-source income, Valve says withholding can range from 0% to 30%, depending on the information in the partner’s tax interview. Treaty eligibility and tax identification details can affect the rate. This is tax withholding, not an additional Steam commission.
- Receive payment by electronic transfer. Valve uses ACH for U.S. banks and USD SWIFT wires for banks outside the United States.
The practical result is that two games with the same listed price can produce different net proceeds if their sales, refunds, chargebacks, applicable taxes, contract terms, or the partner’s withholding status differ.
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When Steam pays and what can affect the deposit
Valve says it pays by the 30th of the month following sales, once a partner’s bank and tax information is complete and verified. Payments are monthly; Valve says it cannot make off-cycle payments. It may hold a payment until the partner has earned at least $100, because transfer and receiving-bank costs can make smaller payments impractical.
Payments are in U.S. dollars. A bank outside the United States receives a USD SWIFT wire, and the receiving or intermediary bank may charge fees. A developer reconciling earnings should compare the Steam Sales Report with the bank deposit: revenue share, withholding, and bank fees are distinct parts of the difference between consumer spending and cash received. Valve’s payment FAQ sets out the timing, threshold, and transfer methods.
Steam Direct’s separate app fee
Publishing a new app on Steam has an upfront Steam Direct fee of $100 USD, or the equivalent amount, per app. Valve says the fee is non-refundable, but it can be recouped in a later payment once that product reaches $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 Valve’s Steam Direct Fee documentation for the terms.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the percentages do—and do not—tell you
The reported tier percentages explain Valve’s platform share under the structure introduced in 2018; they do not establish a developer’s final take-home amount from a customer’s purchase. For an individual partner, the signed Steam Distribution Agreement governs its share, while applicable adjustments and tax withholding affect the payout calculation. Steam’s tax rules also vary by jurisdiction, and Valve’s tax FAQ notes that country tax details can change as laws take effect.
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For understanding the developer tools behind the store, Valve calls Steamworks “a free suite of tools available to any developer to use in their game or software on Steam.” Its Steamworks documentation home page describes the tools and services.
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