Game Difficulty is an option the player can select before starting a game in Hammerwatch. There are three difficulty settings available: Easier, Medium and Hard. There are several differences between the difficulties, such as enemies having differing numbers of projectiles or, as is the case in the Easier difficulty, some of the floor spikes being disabled by default. Below is a list of some of the other general differences between the difficulties.

Easier Medium Hard
Enemy Health Multiplier 0.9 1.0 1.1
Enemy Health Increment 0.45 0.5 0.65
Enemy Speed Multiplier 0.95 1.0 1.33
Enemy Base Damage Multiplier 0.85 1.0 1.75
Enemy Damage Increase 0.1 0.15 0.3
Enemy Spawn Frequency Base 1.1 1 0.75
Money Drop Multiplier 1.1 1.0 0.75