How Spotify pays artists
Spotify doesn't pay a fixed amount per stream. Each month it puts roughly two-thirds of the money it makes from music into a pool, then splits it by each track's share of all streams in that country. The money goes to whoever owns the recording, usually a label or distributor, and they pay the artist.
That's why the per-stream figure moves. It depends on where your listeners live, whether they pay for Premium or listen free with ads, and how many streams there were in total that month. Artists commonly report between $0.003 and $0.005 per stream at the time of writing.
Distributor and label cuts
What reaches you depends on how you release your music. Rough guides:
- Flat-fee distributors (a yearly fee, no commission): you keep about 100% of the recording money.
- Commission distributors: they keep around 10% to 20%, and you keep the rest.
- Indie label deals: often a 50/50 split of profits after costs.
- Major label deals: artists often get around 15% to 25%, and recoup their advance first.
The formula
Earnings = streams × per-stream rate × your share. Streams for a goal = goal ÷ (per-stream rate × your share).
For example, 250,000 streams at $0.003 to $0.005 is $750 to $1,250 paid out. Self-released through a flat-fee distributor, you keep all of it. On a 20% label deal, you keep $150 to $250.
The 1,000-stream rule and songwriting money
Since April 2024, a track only earns recording royalties once it has at least 1,000 streams in the last 12 months, from a minimum number of unique listeners. Streams before a track reaches that aren't paid later.
Songwriting royalties are separate. If you wrote the song, you can earn publishing and mechanical royalties through a publisher, a collecting society, or a publishing admin service, on top of what this calculator shows.
Frequently asked questions
How much does Spotify pay per stream?
Roughly $0.003 to $0.005 per stream to the owner of the recording, at the time of writing. Spotify doesn't set a fixed rate; it shares a pool by share of streams.
How much does Spotify pay for 1 million streams?
About $3,000 to $5,000 paid to the rights holder. Self-released artists keep most of that; on a label deal, you might see $600 to $1,250.
How many streams do you need to make $1,000 on Spotify?
About 200,000 to 333,000 streams if you keep 100%. With a 20% label share, it's about 1 million to 1.7 million.
Does Spotify pay for every stream?
No. A track needs at least 1,000 streams in the last 12 months, from enough unique listeners, before it earns recording royalties.
Do Premium streams pay more than free streams?
Usually, yes. Premium subscriptions bring in more money than ads, so streams from paying listeners and from countries with higher prices tend to pay more.