Practical example:
Let’s say you sell a game on Steam for $19.99, and it sells 30,000 copies in three months, January-March.
You can calculate how much you’ll have to pay Epic in April using this formula:
(UP0.7) - (UP0.05), or (Net after Steam) - ((Epic Fee on total royalties - $3,000)
where
U is the number of units shipped, and
P is the price of your game.
So in our above example, we would write the equation as:
Gross Revenue = UP = 30,00019.99 = $599,700
Net revenue = (UP0.7) - (UP0.05) = (30,00019.99.7) - ( (30,00019.99.05)-3000) = $392,865.
Steam’s royalties, estimated at 30%, are cut from the transaction, so we omit the 30% right from the start with (UP.7). Epic Games takes its cut off of the gross revenue, which is calculated before Steam takes it’s cut (off of U*P). So the formula takes our net revenue from Steam transactions and subtracts our fee for Epic Games calculated based off of our gross sales over and above $3,000.