PARAMETERS
Mathematical Model of Steam Revenue Calculation
The total net profit $\Pi$ is computed as the aggregated developer revenue across all regions $r \in R$, adjusted for local taxation and subsequent overhead costs:
For any given region $r$, the sequential deduction of refunds, value-added taxes (VAT), platform commissions, and United States withholding taxes yields the regional developer revenue $\pi_r$:
Nomenclature:
Calculator Glossary
All sales proceeds before fees, taxes and rebates. — what S showsteamworks How «Gross Revenue».
The amount that actually ends up in the developer’s account after all deductions — commission Steam, taxes and returns.
Player refunds and disputed payments.On Steam usually 5–15% on sales depending on the genre and quality of release.
Share of sales from US buyers — it determines what portion of the proceeds is subject to American taxation.
Value added tax, which Steam he deducts and transfers to the budget for sales outside the USA.
Platform commission: 30% default, reduced to 25% after $10M and up to 20% after $50M gross game revenue.
A tax that the United States withholds on the earnings of a foreign developer.For the Russian Federation now it’s always 30% (W shape-8BEN not applicable).
Income/profit tax in the developer’s country — the rate depends on the jurisdiction and form of business registration.
How much is actually left from each dollar of revenue after all deductions? — main sales performance indicator.
Target net profit.The amount you want to earn «clean» after deducting all fees, taxes and expenses.
The number of copies of the game sold required to achieve your goal or received after the fact.
Base price of one copy of the game in dollars (USD) before regional prices and discounts apply.
Regional prices — the practice of setting different prices for different regions, adapted to purchasing power.
Actual average price of a copy sold, taking into account regional prices and applicable discounts.
Average discount for all sales.Games are rarely sold at full price only, this parameter takes into account the impact of sales.
Break even.Number of copies or gross revenue at which revenues fully cover all development and marketing costs.
Return on investment.Shows return on investment: percentage of net profit to total costs.
Game development budget — the sum of all expenses for creating a product before its release (salaries, assets, outsourcing).
Marketing budget — funds allocated for game promotion: advertising, work with influencers, PR and exhibitions.
Publisher's share.Percentage of revenue (usually from net revenue), which the publisher takes under a contract for its services and investments.
Royalties to the creators of the game engine (for example, 5% for Unreal Engine after crossing the threshold in $1 million in revenue).
Bank commissions — losses at SWIFT/SEPA transfers, currency conversions and correspondent bank commissions.
Boxleiter coefficient — a method of roughly estimating game sales by multiplying the number of reviews by a certain factor (usually from 30 to 50).