Is Unreal Engine 5 Free? Costs, Licensing, and Royalty Explained

Introduction

If you are a game developer or 3D artist, you may wonder: is Unreal Engine 5 free? The short answer is yes—but with a few rules. Unreal Engine 5 (UE5) gives developers access to AAA-quality tools for free. However, there are certain costs, licensing terms, and royalty rules to know.

In this article, we will explain everything in simple terms. From licensing to revenue limits, you will learn when Unreal Engine is free and when you need to pay.

Is Unreal Engine 5 Free?

Yes, Unreal Engine 5 is free to download and use. Epic Games, the company behind Unreal Engine, allows developers to explore the full toolset at no cost. You can create games, films, architecture designs, and simulations without paying upfront.

This makes UE5 one of the most powerful free engines available today. But there are conditions tied to its use in commercial projects. Let’s break those down.

Licensing Terms for Unreal Engine 5

When asking is Unreal Engine 5 free, it is important to look at the license. Epic Games uses the “Unreal Engine End User License Agreement” (EULA). This covers how you can use the engine.

The main points include:

Free for learning and non-commercial use.
Free for film, animation, and architecture visualization.
Free until your product earns above a revenue threshold.
After that, royalties apply.

This license is what makes UE5 accessible to everyone while still supporting Epic Games’ revenue model.

How Royalties Work

The royalty system is simple. Developers owe Epic Games 5% of gross revenue per product, but only after the first $1 million earned.

For example:

If your game makes $500,000 → No royalty.
If your game makes $1.2 million → Royalty is 5% of $200,000 ($10,000).

So while UE5 is free to start, Epic earns a share of big successes.

Who Needs to Pay

Not every UE5 user pays royalties. When wondering is Unreal Engine 5 free, it depends on how you use it.

You do not pay if you are:

A student learning game development.
A hobbyist creating personal projects.
An artist making films or non-interactive media.
An architect producing 3D designs or walkthroughs.

You do pay royalties if you:

Release a commercial game or app.
Cross the $1 million revenue mark per product.

This rule ensures small creators can grow before owing any fees.

Costs Beyond Royalties

Even though the answer to is Unreal Engine 5 free is mostly yes, there are indirect costs. Developers may spend on:

Hardware powerful enough to run UE5.
Marketplace assets, plugins, and tools.
Cloud services for collaboration and storage.
Marketing and publishing fees.

The engine itself is free, but the full development process may involve expenses.

Why Unreal Engine 5 is Free

Epic Games benefits by keeping UE5 free. Here’s why:

It grows the developer community.
More games on Unreal boost Epic’s ecosystem.
The royalty model ensures Epic earns from top projects.
Developers may also use Epic’s other services, like the Epic Games Store.

So while creators ask is Unreal Engine 5 free, Epic gains long-term value from keeping the barrier low.

Advantages of a Free Model

The free access to UE5 comes with several benefits:

Accessibility: Anyone can start without cost.
Education: Students and schools can teach with real AAA tools.
Fairness: Small projects stay royalty-free.
Innovation: More developers means more creative projects.

This makes UE5 an engine that empowers both beginners and professionals.

Comparing Unreal Engine 5 to Other Engines

When you compare UE5 with other engines, the free model stands out.

Unity: Free for smaller revenue but requires a paid plan for larger studios.
CryEngine: Free to use, with a royalty-based model.
Godot: Completely free and open source, but lacks AAA-level features.

So, when people ask is Unreal Engine 5 free, the answer is more favorable than many alternatives.

Common Myths About Unreal Engine 5 Costs

Some myths circulate around Unreal Engine pricing:

Myth: You must pay to download. → False. It is free.
Myth: Royalties apply from the first dollar. → False. They apply after $1 million.
Myth: All projects pay royalties. → False. Only commercial interactive products do.

Understanding these facts clears confusion and helps new users feel confident.

Is Unreal Engine 5 Free for Films and Architecture?

Yes. Another key point when asking is Unreal Engine 5 free is that film, TV, and architecture work is exempt from royalties.

That means if you use UE5 for virtual production or 3D building design, you do not owe Epic any share. This makes the engine ideal for industries beyond gaming.

The Future of Unreal Engine Licensing

Epic may adjust the license as technology changes. But for now, the rule remains: UE5 is free, and royalties apply after $1 million in revenue.

This balanced approach attracts both indie developers and large studios. It ensures Unreal remains a leading tool in the 3D industry.

Final Thoughts

So, is Unreal Engine 5 free? Yes, it is free to download, free to use, and free for most projects. Only when your commercial product earns over $1 million do royalties apply.

This makes UE5 a great choice for both beginners and professionals. You can learn, build, and publish without upfront costs. When you succeed, Epic shares in that success.

Render Faster with 3S Cloud Render Farm

While Unreal Engine 5 is powerful, rendering large projects can still take time. This is where 3S Cloud Render Farm helps. It offers fast, scalable cloud rendering for artists and studios. With reliable servers and simple pricing, you can render UE5 projects without delays.

If you want speed and efficiency, 3S Cloud is the right choice for your Unreal Engine work.