When someone publishes a book on Amazon KDP, one of the first questions that comes up is: “How much money do I actually earn per sale?” The answer lies in something called royalties. If you’ve ever been confused about how Amazon calculates royalties, you’re not alone. Many new authors think they’ll get 100% of the book price, but that’s not how it works. Amazon provides the platform, printing, and distribution, so they take their share. Let’s break this down in the most simple way possible.
What exactly are royalties?
Royalties are basically the earnings you receive every time your book sells. In simple terms, whenever a reader buys your book, Amazon takes its cut, and you get the rest. That “rest” is what we call royalties.
Think of it like selling lemonade. If you use your neighbor’s stall to sell the lemonade, they’ll charge you for using their spot. The profit left after paying them is yours. That’s royalties in a nutshell. 🍋📚
Types of royalties on KDP
Amazon KDP mainly offers two royalty options for eBooks:
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35% royalty rate
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70% royalty rate
For paperbacks and hardcovers, royalties are fixed at 60% minus printing costs.
The 35% vs 70% royalty option for eBooks
This is where most authors get confused. Let’s make it super clear:
| Royalty Plan | Conditions | What You Earn |
|---|---|---|
| 35% | Available for all eBooks priced $0.99–$200 (except some countries) | You earn 35% of the list price per sale |
| 70% | Only available if your eBook price is $2.99–$9.99 AND meets Amazon’s rules | You earn 70% of the list price per sale, minus delivery cost |
So if your eBook is priced at $2.99, you can earn more with the 70% plan. But if you price it below $2.99 (like $0.99), you’re stuck with 35%.
An example with numbers for eBooks
Let’s say you price your eBook at $4.99.
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If you choose 35%, you earn:
$4.99 × 35% = $1.74 per sale -
If you qualify for 70% (and delivery cost is, say, $0.10), then:
($4.99 × 70%) – $0.10 = $3.39 per sale
That’s almost double! 💡 So, in most cases, authors prefer the 70% plan.
Why does Amazon have these two royalty rates?
Amazon wants to encourage authors to keep their eBooks in a “sweet spot” price range ($2.99–$9.99). This price range usually sells better, so both authors and Amazon benefit. If you price too low (like $0.99) or too high (like $14.99), Amazon makes it less profitable for you. It’s their way of nudging you toward a middle ground.
Royalties for paperbacks
Paperbacks work differently. Here’s the formula:
Royalty = (List Price – Printing Cost) × 60%
Let’s break this down with an example:
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Your paperback list price = $12.99
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Printing cost (depends on page count, ink type, etc.) = $3.25
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Royalty = ($12.99 – $3.25) × 60% = $5.84
So, from every sale of that paperback, you’ll pocket $5.84. Not bad, right? 📖
Royalties for hardcover books
Hardcover royalties follow the same formula as paperbacks:
Royalty = (List Price – Printing Cost) × 60%
But printing hardcovers is usually more expensive, so your profit per book might be a little less unless you price it higher.
Delivery cost for eBooks
Now, one small detail many people miss is the delivery cost. For eBooks under the 70% royalty option, Amazon charges you a tiny fee for delivering the digital file to readers’ devices. It usually depends on file size.
For example:
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If your eBook file size = 3 MB
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Delivery cost = $0.15/MB in the U.S.
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Total delivery = $0.45
So if your eBook sells for $4.99, your actual royalty calculation is:
($4.99 × 70%) – $0.45 = $3.04
This is why formatting and compressing your eBook properly matters. If you load it with heavy images, your royalties may shrink.
How much can authors really earn?
The truth is, royalties depend on your pricing, book length, and sales volume. Some authors make just a few dollars a month, while others make thousands. Let’s illustrate:
| Book Price | Royalty Rate | Estimated Earnings per 100 Sales |
|---|---|---|
| $0.99 | 35% | $34.65 |
| $2.99 | 70% | $209.30 |
| $4.99 | 70% | $339.00 |
| $12.99 (paperback) | 60% – $3.25 print cost | $584.00 |
This table shows why pricing strategy is so important.
KDP Select and royalties
If you enroll your eBook in KDP Select, you can also earn from:
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Kindle Unlimited (KU) pages read
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Kindle Owners’ Lending Library (KOLL)
In these cases, your royalties come from a global fund that Amazon sets aside each month. For example, if the fund is $50 million and your readers read 100,000 pages, you’ll get paid based on the per-page rate (usually around $0.004–$0.005 per page).
Common misunderstandings about royalties
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Many beginners think Amazon pays 70% on every book. That’s not true.
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Some assume they get 70% of the list price without costs. But for eBooks, delivery cost applies.
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For paperbacks, the printing cost can eat into royalties if the book is long.
Quick tips to maximize royalties
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Price your eBook in the $2.99–$4.99 range to get 70% and stay attractive to readers.
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Keep file sizes small to reduce delivery costs.
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Optimize your paperback’s page count (avoid unnecessary blank pages).
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Consider KDP Select for extra income streams.
When do you get paid?
Amazon pays royalties every month, but with a 60-day delay. For example, if you earn $500 in January, you’ll receive it at the end of March. Payments can be made via direct deposit, wire, or check depending on your location.
Frequently Asked Questions (FAQs)
Q1. Do I earn royalties on free books?
No. If you set your book for free, you won’t earn royalties. However, free promotions (through KDP Select) can help boost visibility.
Q2. Can I change my royalty option later?
Yes, you can. If you initially chose 35%, you can later switch to 70% if your book qualifies.
Q3. How are paperback royalties different from eBook royalties?
eBooks are either 35% or 70%, while paperbacks and hardcovers are fixed at 60% minus printing cost.
Q4. Does Amazon take tax from my royalties?
Yes, depending on your country, Amazon may withhold some percentage for taxes. You can reduce this with proper tax forms (like W-8BEN for non-US authors).
Q5. Is the 70% royalty worldwide?
Not exactly. The 70% option is available in many major countries (like US, UK, Canada, Australia, etc.), but in some countries, you only get 35%.
Final Thoughts
KDP royalties might sound complicated at first, but once you see the formulas and examples, it becomes pretty clear. The main takeaway is this: price your eBook wisely, understand the costs, and choose the royalty plan that makes the most sense for your book and audience.
Amazon gives you global reach, but it’s up to you to maximize the earnings. With smart pricing, better formatting, and the right strategies, your royalties can grow steadily over time. 🚀
