We're introducing an improved Royalty Reporting system in the Developer Portal to make the Unreal Engine royalty calculation and reporting process easier.
Up until now, developers whose products rely on engine code at runtime and generated more than $1M USD in lifetime revenue calculated royalties manually with every quarterly report. This improved process, launching today, will save time and take out the guesswork for anyone that owes royalties under the Unreal Engine EULA.
Up until now, developers whose products rely on engine code at runtime and generated more than $1M USD in lifetime revenue calculated royalties manually with every quarterly report. This improved process, launching today, will save time and take out the guesswork for anyone that owes royalties under the Unreal Engine EULA.
Where to access the improved Royalty Reporting in the Developer Portal
The updated Royalty Reporting system lives in the Developer Portal. To access it, click the new “Royalties” tab inside the Unreal Engine section on the left-hand navigation bar of the portal.New Royalty Reporting features
The improved Royalty Reporting system offers these features:- Everything in one place. With the Royalty Reporting process in the Developer Portal, you can find everything you need to notify us of your product release, submit quarterly Royalty Reports, and release your game on the Epic Games Store.
- Automatic royalty calculations. Once you input your product's revenue (excluding earnings from the Epic Games Store), the system will calculate any royalties due to Epic.
- Timely reminders. At the end of each quarter, the system will send a Royalty Report reminder to royalty-eligible companies.
- History view. Your company can see the Royalty Reports your organization has submitted in the past.
Who needs to use the improved Royalty Reporting system?
If your company released a royalty-bearing product in Q1 of 2025, or if this is the first time you are reporting revenue from your Unreal Engine product, you will complete your Royalty Report directly inside the Developer Portal. Going forward into future quarters, the new system will continue to track and accumulate all your revenue entries from previous quarters.
If you’ve reported revenue and royalties in the past via the old form, you will now move to the Developer Portal and will submit your Q1 and future reports there. You will need to re-submit the Release Form with the amount of lifetime revenue to match what you previously reported via the old process, but going forward you’ll only need to report quarterly revenue.
Launch Everywhere with Epic
While on the subject of royalties, now is a good time to check out the Launch Everywhere with Epic program, which is available to games launched on or after January 1, 2025.Through this program, when you ship eligible Unreal Engine titles on the Epic Games Store before or at the same time as other stores on corresponding platforms (PC, Mac, Android, and in the future, iOS), you can qualify for a reduced Unreal Engine royalty rate of 3.5% rather than the 5% standard for all platforms and stores where you offer your games, including consoles.
To enroll your new product in the Launch Everywhere with Epic program, choose that option when filling out the Release Form for the product.
Frequently asked questions
I have a custom license. Will I use the new royalty reporting system?
No. You will continue to use the same process you’ve been using so far. The Royalty Reporting function in the Developer Portal is only for users under the EULA.
How do I pay any royalties due?
After submitting your quarterly report, your organization will receive an email invoice with all the details on how to pay.
What’s the difference between the ‘Notification of release’ and the ‘Royalty report’ steps?
The ‘Release Form’ is how you notify us that you are releasing a new Unreal Engine product. Therefore, you should fill in the ‘Release Form’ before you ship a new game or application that relies on Unreal Engine code at runtime.
Once your product is released, you’ll use the ‘Royalty Report’ to calculate any royalty due to Epic on a quarterly basis.
I don’t have a royalty-bearing product that has generated over $1M USD in revenue. Can I still use Unreal Engine for free?
Unreal Engine is free to use for students, educators, hobbyists, and most non-games companies making less than $1 million USD in annual gross revenue.
For game developers and other users distributing applications that incorporate Unreal Engine code at runtime (such as a game) and are licensed to third-party end users, a 5% royalty is due (discounts may apply) when the lifetime gross revenue from that product exceeds $1 million USD. No royalties are due on the first $1 million in lifetime gross product revenue.
Do I need to report revenue forever?
You are required to report revenues on a quarterly basis for each quarter where you are due to pay royalties to us. However, in any quarter in which your product generates less than $10,000 USD, you do not owe any royalties for that product. If your game or other interactive off-the-shelf product is no longer being sold, no revenue reports are due.For more questions on when to report royalties or about the ‘Launch Everywhere with Epic’ program, please visit “Releasing Products” FAQ.