Game Development Budget Estimator

How to calculate a game budget?

Calculating a game budget involves estimating the monthly burn rate of your team and adding external costs. The standard formula used by most indie studios to determine the base production cost is:

(Team Size * Months * Salary) + Assets + Marketing

Using the Budget Estimator: an example

Consider a small indie studio developing a 2D platformer. The project features a core team of 3 people working full-time over a duration of 12 months with an average monthly salary of $4,000 per person.

Step-by-step calculation

• Labor Calculation: 3 people × 12 months × $4,000 = $144,000
• Marketing Add-on: $20,000 (Trailer, social media, and ads)
• Final Total: $164,000 (Excluding software licenses and hardware)

Frequently Asked Questions

• Why the 20% Contingency Rule? Always add 20% to your final estimate. Game development is unpredictable; this buffer covers bug fixing, delays, and unexpected scope changes.
• How do platform fees affect my budget? Major stores like Steam and PlayStation take a 30% cut of revenue. While not an upfront cost, it is crucial for calculating your break-even point.
• What is the difference between fixed and variable costs? Fixed costs remain constant (like office rent), whereas variable costs scale with the project size or duration (like monthly salaries and contractor hours).