Question 1

How much does a Twitch Tier 1 subscription pay the streamer?

Accepted Answer

For a standard $4.99 Tier 1 sub, most Twitch Partners receive a 50% share, which is approximately $2.50. Some top-tier partners may have a more favorable 70/30 split. Prime Gaming subs provide a similar payout to the streamer.

Question 2

How are bits converted to cash and what does Twitch keep?

Accepted Answer

100 Bits are worth exactly $1.00 to the streamer. Twitch's fee is taken from the viewer when they purchase the Bits, so the streamer receives the full value of the Cheer. The main cost to the streamer is the income tax they will owe on that $1.00.

Question 3

What is a realistic ad RPM for Twitch streamers?

Accepted Answer

Ad RPM (Revenue Per Mille, or per 1,000 views) on Twitch varies but typically ranges from $1.00 to $4.00 for most gaming streamers. It can be higher for streamers in high-value demographics. Your exact RPM can be found in your Twitch Creator Dashboard analytics.

Question 4

How do gifted subs affect revenue and churn?

Accepted Answer

Gifted subs provide the same revenue as a regular sub for the first month. However, they do not automatically renew, which can lead to higher churn in the following month if the recipient does not choose to continue the subscription themselves. They are a great way for the community to support the streamer but are less predictable for long-term forecasting.

Question 5

How are sponsorships usually structured and taxed?

Accepted Answer

Sponsorships can be a flat fee for a set number of streams/videos or a performance-based (affiliate) model. This income is taxable. The brand will typically issue a 1099-NEC form (in the US) for payments over $600, and the streamer is responsible for reporting this income and paying self-employment taxes on it.

Question 6

How to calculate net take-home after agent commissions and taxes?

Accepted Answer

The correct order of operations is: Gross Revenue - Agent Cut = Taxable Income. Then, Taxable Income * Tax Rate = Taxes Owed. Finally, Taxable Income - Taxes Owed = Net Take-Home Pay. This calculator follows this sequence.

Question 7

What is a realistic ARPU for gaming channels?

Accepted Answer

ARPU (Average Revenue Per User) can vary greatly. A simple way to estimate it is to take your total monthly revenue and divide it by your number of unique viewers. For a well-monetized channel, an ARPU of $0.50 to $2.00 per unique monthly viewer is a solid benchmark.

Question 8

How many subs do you need to make $5,000/month?

Accepted Answer

Assuming a 50/50 split on $4.99 subs (~$2.50 per sub), you would need approximately 2,000 subscribers to make $5,000 per month from subscriptions alone. Most streamers earn this amount from a combination of subs, ads, and sponsorships.

Question 9

Can streamers rely on subscriptions alone?

Accepted Answer

While subscriptions provide a relatively stable base, relying on them alone is risky due to churn. The most successful streamers diversify their income across subs, ads, sponsorships, and merchandise to create a more resilient business.

Question 10

What is the best way to estimate ad RPM for my channel?

Accepted Answer

The most accurate way is to look at your Twitch Creator Dashboard. Go to 'Channel Analytics' > 'Revenue' to see your actual ad revenue and calculate your RPM based on your viewership for that period.

Question 11

How to include merch revenue in total creator income?

Accepted Answer

To include merch revenue, you should use your net profit, not gross sales. Calculate this as (Total Sales) - (Cost of Goods Sold) - (Platform/Fulfillment Fees). This net profit figure is the amount you actually earned and can be added to your other income streams.

Question 12

How much does Twitch take from donations?

Accepted Answer

Twitch does not take a cut from direct donations made through third-party services like Streamlabs or PayPal. However, those services have their own processing fees (e.g., PayPal's is ~2.9% + $0.30). For Bits, Twitch's cut is taken when the viewer buys the Bits, not when they are used to Cheer.

Twitch Earnings Calculator — Estimate Subs, Bits, Ads, Sponsorships & Net Pay (2025)

How Twitch Streamers Make Money in 2025 — Subs, Bits, Ads, Sponsorships & Taxes