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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesEpic’s policies involve two separate charges: Unreal Engine royalties and Epic Games Store commission. The standard Unreal Engine royalty is 5% of qualifying lifetime gross revenue above $1 million per product, while eligible titles can pay a reduced 3.5% rate under Launch Everywhere with Epic. Separately, Epic Games Store takes no commission on the first $1 million of net revenue per product each calendar year, then takes 12% above that threshold. The store threshold resets each January beginning in 2026; it does not change the Unreal Engine lifetime threshold.
What is the Unreal Engine royalty rate?
Epic’s current licensing summary sets a standard royalty of 5% on qualifying lifetime gross revenue above $1 million directly attributable to a product made with Unreal Engine. The threshold is lifetime-based, not an annual allowance. The license summary describes royalty-bearing products as games or applications that rely on Unreal Engine code at runtime and are licensed to third-party end users. See Epic’s Unreal Engine licensing options; the Unreal Engine EULA governs the operative terms.
Epic says revenue from sales in the Epic Games Store is royalty-free for Unreal Engine royalty purposes. That does not mean every transaction associated with a game sold there is exempt: the payment-processing conditions are described below.
How can a game qualify for the 3.5% Unreal royalty?
Launch Everywhere with Epic offers a reduced Unreal Engine royalty of 3.5% for qualifying products. The lower rate is conditional, not an automatic discount for every Unreal title. Under the EULA, a qualifying product must be released on or after January 1, 2025, on at least one platform that supports the Epic Games Store. On each platform where the store is available, the product must be publicly released there before or at the same time as its release on other stores, and it must satisfy the agreement’s parity requirements. Epic’s EULA and EULA change log set out the terms.
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For a title-specific decision, developers should check the signed license, the platforms and storefronts where the product is distributed, and any separate Epic agreement. A public summary cannot determine how the terms apply to every release arrangement.
Does releasing on the Epic Games Store reduce royalties on Steam sales?
Potentially, but only if the product qualifies for Launch Everywhere with Epic. Meeting the release-timing and parity requirements can make the reduced 3.5% Unreal Engine royalty available for qualifying revenue; simply listing a game on the Epic Games Store does not establish eligibility. Steam sales and other revenue should be assessed under the engine license and the applicable Launch Everywhere terms, rather than treated as automatically exempt because the game is also on Epic’s store.
How is Epic Games Store commission different?
Epic Games Store commission is a distribution charge under the store’s terms, separate from an Unreal Engine royalty under the engine license. The store’s current distribution page says developers receive 100% of the first $1 million in net revenue per product per year, with an 88% developer share and 12% Epic share thereafter. The threshold is measured annually for each product, rather than over the product’s lifetime. See Epic Games Store distribution terms.
| Policy | Agreement and charge | Revenue basis and threshold | Rate or share | Main condition |
|---|---|---|---|---|
| Unreal Engine standard royalty | Engine license; royalty payable to Epic | Qualifying lifetime gross revenue directly attributable to the product; first $1 million is below the stated royalty threshold | 5% above the threshold | Applies to qualifying products under the engine license |
| Launch Everywhere with Epic | Engine license; reduced royalty payable to Epic | Qualifying revenue under the engine royalty terms | 3.5% for eligible products | Release date, store availability, release timing and parity requirements apply |
| Epic Games Store distribution | Store distribution terms; commission retained by Epic | Net revenue per product per calendar year; threshold resets January 1 beginning in 2026 | 100% developer share up to $1 million, then 88% developer share and 12% Epic share | Applies to sales through the Epic Games Store |
The two $1 million figures are not interchangeable. The Unreal Engine figure is a lifetime threshold applied to qualifying gross revenue; the store figure is an annual threshold applied to net store revenue. Store commission terms do not replace the engine EULA.
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What changed in the Epic Games Store threshold in 2026?
Epic introduced the store’s first-$1-million-per-product threshold on June 1, 2025, for the remainder of that year. Starting in 2026, the threshold resets on January 1 each calendar year. The change affects Epic Games Store commission calculations; it does not reset or replace the Unreal Engine license’s lifetime royalty threshold. Epic announced the timing in its revenue-share update.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Are in-game purchases exempt from Unreal royalties on the Epic Games Store?
Not simply because they are sold in a game distributed through the store. Epic says the Unreal royalty waiver applies to Epic Games Store purchases processed using Epic’s payment system. The stated exemption does not extend on that basis to in-app purchases or products that use their own payment processor. Developers should review the transaction and payment route against the current Epic Games Store distribution terms.
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