How Do KDP Royalties Work? eBook and Paperback Math Explained

KDP pays you a percentage of each sale's list price, and the rate depends on the format and the price you set. For Kindle eBooks, you choose either a 70% plan (for list prices from $2.99 to $9.99, minus a delivery fee) or a 35% plan. For paperbacks, you earn 60% of the list price after the printing cost is deducted (50% for US Amazon prices under $9.99), or 40% minus printing through Expanded Distribution.

Those rates come from Amazon KDP's published terms, and Amazon can change them. Confirm the current figures in your KDP dashboard before you set prices. The rest of this guide explains each part of the formula, with worked examples you can adapt to your own book.

The difference between the 70% and 35% eBook royalty plans

When you publish a Kindle eBook, KDP asks you to pick a royalty plan on the pricing page. The two options behave very differently.

The 70% plan pays 70% of the list price, minus a delivery fee based on the size of your book file. To qualify, your list price has to fall within the price band, which is $2.99 to $9.99 on Amazon.com. Other marketplaces have their own bands in local currency.

The 35% plan pays 35% of the list price, with no delivery fee. You can use it at any price KDP allows, including below $2.99 and above $9.99.

The 70% plan has a few other conditions in KDP's terms. Your eBook's list price generally needs to be at least 20% lower than the list price of any print edition. Books made mostly of public domain content are limited to 35%. In a few marketplaces, the 70% rate also depends on enrolling the book in KDP Select. Check the KDP help pages for the current list of conditions, because they are the part of the system most likely to change.

You don't lock yourself in permanently. You can switch plans whenever you change your price, and the new rate applies to sales after the change goes live.

The KDP delivery fee and what it costs

The delivery fee is Amazon's charge for sending your eBook file to the reader's device. It applies only to the 70% plan.

The fee is based on the file size of your converted book, charged per megabyte. The rate differs by marketplace. KDP shows the estimated delivery cost for your file on the pricing page after you upload your manuscript. Check the current per-megabyte rates on KDP's eBook royalty help page rather than relying on a figure from an old article.

For most text-only novels and nonfiction, the file is small and the fee takes only a small bite out of each sale. It matters more for books with lots of images, such as cookbooks, photo-heavy guides or picture books. A large file can make the 70% plan earn less than you expect, and in extreme cases the 35% plan (which has no delivery fee) can come out close or even ahead.

A few practical ways to keep the fee low:

• Compress images before you build your EPUB.
• Remove unused fonts and embedded files.
• Check the file size KDP reports after upload, not the size of your source document.

Why the $2.99–$9.99 price band matters so much

The price band decides which royalty rate you can use, and that changes your earnings per sale a lot.

Here is the arithmetic on Amazon.com, ignoring the delivery fee for a moment:

List price	Plan available	Royalty rate	Royalty per sale (before delivery fee)
$0.99	35% only	35%	about $0.35
$2.99	70% or 35%	70%	about $2.09
$4.99	70% or 35%	70%	about $3.49
$9.99	70% or 35%	70%	about $6.99
$12.99	35% only	35%	about $4.55

Two things stand out.

First, the jump from $2.98 to $2.99 is large. One cent moves you from 35% to 70%, so a $2.99 eBook earns roughly twice as much per sale as a book priced just below it.

Second, pricing above the band can earn less per copy. A $12.99 eBook on the 35% plan earns about $4.55. A $9.99 eBook on the 70% plan earns about $6.99, minus a small delivery fee. You'd charge readers more and keep less.

That is why most self-published eBooks on Amazon sit between $2.99 and $9.99. If you want to try a lower price for a launch or a series starter, you can drop to $0.99 on the 35% plan for a set period and switch back later.

How KDP paperback royalties work

Paperback royalties use a different formula because Amazon has to print a physical copy for every order. The print-on-demand cost comes out of your share.

According to KDP's published terms:

• On Amazon marketplaces: 60% of the list price, minus the printing cost.
• Under $9.99 on the US store: the rate drops to 50%, still minus printing.
• Through Expanded Distribution: 40%, again minus printing.

The formula is:

Royalty = (royalty rate × list price) − printing cost

The printing cost depends on:

• Page count
• Black-and-white or color interior
• Trim size
• The marketplace where the book is printed

KDP calculates the exact printing cost on the paperback pricing page once you've entered your page count and interior type. You can also estimate it ahead of time with the KDP royalty calculator, which is useful when you're deciding between trim sizes or trying to keep a book under a certain length.

KDP also sets a minimum list price for each paperback. That minimum exists so your royalty can't drop below zero. If your printing cost is high, your minimum price will be high too.

Expanded Distribution and whether it's worth it

Expanded Distribution is an optional setting for KDP paperbacks. It makes your book available to bookstores, libraries and online retailers outside Amazon, through third-party distributors.

The tradeoff is the royalty rate. Sales through Expanded Distribution pay 40% rather than 60%, with printing still deducted. Those other retailers and distributors take a cut, and that cut comes out of your share.

Things to weigh:

• Reach: Your book becomes orderable by stores and libraries that don't buy from Amazon directly.
• Price pressure: Because the rate is lower, you may need a higher list price for Expanded Distribution sales to stay profitable. That higher price also applies on Amazon.
• Realistic demand: Being listed in a distributor's catalog doesn't mean bookstores will stock your book. Most bookstore orders still come from readers or local events asking for a specific title.
• Exclusivity with other printers: If you plan to use IngramSpark for wider print distribution, you'll usually leave Expanded Distribution off for that edition to avoid two listings competing.

Expanded Distribution doesn't affect your Amazon sales. Those still pay at the Amazon rate.

Worked examples

The examples below use KDP's published rates. Where a number depends on your specific file or book (the delivery fee and printing cost), we use a made-up figure to keep the math simple. Your real numbers come from your KDP pricing page.

Example 1: A $4.99 novel on the 70% plan

• List price: $4.99
• 70% of $4.99 = $3.49
• Delivery fee: suppose KDP shows $0.05 for your small text file (illustration only)
• Royalty per sale: about $3.44

Example 2: The same novel on the 35% plan

• 35% of $4.99 = $1.75
• No delivery fee
• Royalty per sale: about $1.75

At this price, the 70% plan earns roughly twice as much, even after the delivery fee.

Example 3: A $14.99 paperback sold on Amazon

Assume a printing cost of $4.00. This is a hypothetical figure; check your own in KDP.

• 60% of $14.99 = $8.99
• Minus printing: $8.99 − $4.00
• Royalty per sale: about $4.99

Example 4: The same paperback sold through Expanded Distribution

• 40% of $14.99 = $6.00
• Minus printing: $6.00 − $4.00
• Royalty per sale: about $2.00

Same book, same price, but a bookstore sale earns well under half of an Amazon sale.

Example 5: Pricing a paperback too low

Same $4.00 printing cost, but list price of $8.99 on Amazon.com:

• Below $9.99, the rate is 50%. 50% of $8.99 = $4.50
• Minus printing: $4.50 − $4.00
• Royalty per sale: about $0.50

Through Expanded Distribution at $8.99, 40% would be $3.60. That's less than the printing cost, so KDP wouldn't let you set that price with Expanded Distribution turned on. You'd see a higher minimum list price instead.

These examples show why the page count and trim size matter for print. A longer book or a color interior raises the printing cost, which comes straight out of your royalty. A page count calculator can help you estimate length before you format.

Where Kindle Unlimited page reads fit in

If you enroll your eBook in KDP Select, it becomes part of Kindle Unlimited. Readers there borrow your book rather than buying it, and you're paid for pages read, measured in KENP (Kindle Edition Normalized Pages).

That income comes from a monthly fund that Amazon sets, divided among all enrolled authors by pages read. The per-page rate changes each month and isn't a fixed percentage of your list price. Check the KDP Select Global Fund announcements in your dashboard for current figures.

Regular sales of a Select-enrolled eBook still earn your normal 70% or 35% royalty.

When and how you get paid

KDP pays royalties roughly 60 days after the end of the month in which the sales happened. Sales in March, for example, are paid near the end of May. Each marketplace pays separately, in its own currency, and some have minimum payment thresholds depending on your payment method.

Two other things affect what reaches your bank account:

• Taxes: Depending on where you live and your tax interview in KDP, Amazon may withhold tax from US sales. Complete the tax interview before you publish.
• VAT: In marketplaces that charge VAT, royalties are calculated on the list price excluding VAT.

Your KDP Reports page shows estimated royalties as sales come in. Treat those numbers as estimates until the payment report is final.

For a realistic look at what these royalties add up to over time, see how much self-published authors make.

Common problems and fixes

"The 70% plan is greyed out." Your price is outside the $2.99–$9.99 band for that marketplace, or your eBook isn't at least 20% cheaper than your print edition. Adjust the price, or check whether the book contains public domain material that limits it to 35%.

"My delivery fee is much higher than expected." Your file is large, usually because of images. Compress images, remove unused embedded fonts and re-upload. Then compare the 70% royalty after the fee against the 35% royalty to see which plan actually pays more.

"KDP won't accept my paperback price." Your list price is below the minimum KDP calculates from your printing cost. Raise the price, turn off Expanded Distribution (which needs a higher minimum), or reduce the printing cost with a smaller trim size, fewer pages or a black-and-white interior.

"My royalty per paperback is tiny." Re-run the numbers with the 50% rate if your US price is under $9.99, and the 40% rate for Expanded Distribution sales. Many authors find that pricing at or just above $9.99 changes the math noticeably.

"Reports show sales but I haven't been paid." Payments arrive about 60 days after the month ends, and some marketplaces won't pay until you reach a threshold. Check your payment settings and tax interview status in KDP.

"I set prices in one marketplace and forgot the others." KDP can auto-convert from your US price, but that can push a book out of the 70% band in local currency. Review each marketplace's price individually before publishing.

If you'd like a step-by-step list of everything KDP asks for during setup, including pricing and royalty choices, our Amazon KDP publishing guide walks through each screen. Inkora's Publishing Hub has the same kind of checklist for KDP eBooks and paperbacks. You still upload in your own KDP account, but the checklist helps you avoid missing a pricing or distribution setting.

KDP royalties come down to two formulas. For eBooks, it's a percentage of list price, minus a delivery fee on the 70% plan. For paperbacks, it's a percentage of list price with the printing cost taken out. Run your own numbers with real printing and delivery figures before you pick a price, and check the dashboard whenever Amazon updates its terms.