The Steam picks by group size
Two of you. Portal 2, first and cheapest. Its co-op campaign is a separate mode built for exactly two, and it goes on sale for a couple of dollars regularly. See our 2-player page for the wider list.
Three or four.Deep Rock Galactic, Helldivers 2, Lethal Company, or Phasmophobia. This is Steam's strongest bracket by a distance - four-player co-op is the format PC does better than anywhere else.
Five or more. Terraria handles up to eight and Human: Fall Flat also goes to eight, both cheaply. Beyond that you are into free battle royale territory - Apex Legends and Fall Guys. Our large groups page has more.
Steam and crossplay
Being on Steam does not stop you playing with console friends, but it depends entirely on the game. Helldivers 2 reaches PS5 and Xbox. Deep Rock Galactic reaches Xbox but not PlayStation. Human: Fall Flat, Overcooked, Fortnite, Rocket League, and Fall Guys reach everything. Portal 2, Lethal Company, Borderlands 3, and Phasmophobia are effectively PC-bound for your purposes. The crossplay hub has the verified list, and PS5 + PC and PC + Xbox cover the two most common mixes.
Refunds make trying a co-op game low-risk
Steam's refund policy - broadly, within a couple of weeks of purchase and under roughly two hours of playtime - is unusually useful for group games. It means a squad can each buy a co-op title, play one session together to find out whether it clicks, and everyone can return it if it does not. Very few purchases in gaming come with that safety net, and it takes most of the risk out of trying something nobody in the group has played.
Two practical notes: the playtime limit is per person, so tell everyone before you start rather than after, and a heavily discounted purchase refunds the amount you actually paid. Check the current policy at the point of buying, since terms can change.
Wishlist rather than buy
Steam runs major seasonal sales several times a year, and wishlisted games email you when they discount. For a group planning a co-op purchase that is not urgent, wishlisting the two or three candidates and waiting for a sale is the single easiest way to halve the cost. Prices shown on this page come live from Amazon, which is a separate market from Steam's own store - compare both before buying, and see our budget picks for the consistently cheap options.