Glossary · Selling & distribution
What is a book royalty in self-publishing?
Definition
Royalty: A royalty is the share of each sale paid to the author. In self-publishing it's the list price minus the store's share and, for print, the printing cost.
A royalty is what you earn from each copy sold. In traditional publishing, royalties are usually a modest percentage of the list price or of the publisher's receipts, paid against an advance. In self-publishing there is no advance, but the royalty rate is much higher because you take on the publisher's role.
For eBooks, stores pay a percentage of the list price. Amazon KDP currently offers 70% for eBooks priced in a set range (for the US store, $2.99 to $9.99), minus a small delivery fee based on file size, and 35% outside it. Most other eBook stores pay around 70% for books in common price ranges. For print, the royalty is a percentage of the list price minus the printing cost: on KDP that is currently 60% for Amazon sales, and lower for low-priced paperbacks and for Expanded Distribution.
So the same paperback can earn very different amounts depending on page count (which drives print cost), trim size, ink, price and channel. Rates, thresholds and fees change, and they differ by marketplace and currency, so check the platform's current royalty terms before setting a price.
Royalties are typically paid monthly, around two months after the sales month, once you pass the platform's payment threshold. Tax may be withheld depending on where you live and the tax information you provide.