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Royalties, Funding, Payment. How do I calculate it?

Hey everyone,

I’m currently researching funding options, specifically what kind of revenue split I have to expect. There isn’t a whole lot of information available online, probably because these deals can vary greatly from project to project. What I was able to find, however, are the terms from the Indie Fund, which state the following:

That’s all well and good, but UE4 also wants their 5% cut from the gross revenue. So… I have to pay 105% of my gross revenue? Additionally, going by this answerhub thread, gross revenue is calculated before Steam (or any other platform holder) takes their 30%, which would mean I have to pay much more than I receive, which obviously (Hopefully!) can’t be right.

If anyone here knows how this works, I would greatly appreciate a short explanation of how to calculate these percentages. It would also be interesting to know if publishers generally take their cut *before *or *after *taxes and Steam, and how large that cut usually is.

Thanks for any help in advance!

You would have to ask them, since Steam will automatically take out their percentage and you’d need to pay Epic as well, I would think it would be the remaining amount.

Thanks for your reply.

I was hoping to find some devs who went through this process already and can shed some light on it, but it appears I really have no choice but to contact the respective parties directly.

Hire accountant dude :wink:

Oh, you ask about a publisher.
It’s like this:

If you take from the publisher $50.000 to make your game, from day one commercial release, you earn $0 (zero pennies) until the day Publisher makes back those $50K you borrowed from them.
After that, only after that, they begin splitting profits shares with you, the developer; that’s how publishers are.

In such a case, you must include Epic’s 5% as part of the expenses you take the loan for.

Thanks Bruno, that’s exactly what I wanted to know. Not exactly the answer I was hoping for, but definitely good to know. :smiley:

And yeah, I won’t get around hiring an accountant sooner or later, but I don’t think I’m at that point yet. I just needed a basic understanding of this stuff so I can plan ahead.