How Kindle eBook royalties are calculated
KDP offers two royalty plans for eBooks sold on Amazon.com. The 70% plan pays 70% of the list price after subtracting a delivery fee of $0.15 per megabyte of your converted file, and is only open to list prices between $2.99 and $9.99. The 35% plan pays 35% of the list price with no delivery fee, and its minimum price depends on file size — $0.99 for files up to 3 MB, $1.99 up to 10 MB and $2.99 above that.
Worked example
A novel priced at $4.99 with a 1.5 MB file pays a delivery fee of $0.22. On the 70% plan the royalty is 70% × ($4.99 − $0.22) = $3.34 per sale. The same book on the 35% plan would earn $1.75. Drop the price to $0.99 and the 70% plan is no longer available, so each sale earns $0.35.
How paperback royalties are calculated
Paperback royalty = royalty rate × list price − printing cost. The rate is 60% on Amazon.com, but KDP pays 50% on paperbacks listed below $9.99. Expanded Distribution (bookstores and libraries) pays 40%.
Printing cost for a black-and-white book on a standard trim (up to 6.12" wide and 9" tall) is a flat $2.30 up to 108 pages, then $1.00 plus $0.012 per page. A 100-page book costs $2.30; a 250-page book costs $4.00. Larger trims such as 7" × 10" and 8.5" × 11" cost more per page, and premium colour costs considerably more.
Worked example
A 250-page 6" × 9" paperback on cream paper, listed at $14.99: 60% × $14.99 − $4.00 = $4.99 per copy on Amazon, and $2.00 through Expanded Distribution. A shorter 120-page 5" × 8" book at $8.99 falls under the 50% rate and earns $2.06 (minimum price $4.88).
Common mistakes
- Pricing an eBook at $1.99 or $10.99. Both fall outside the 70% band and drop you to 35% — often less money than a cheaper or slightly lower price.
- Ignoring file size. Large embedded images raise the delivery fee on every 70% sale.
- Forgetting page count drives printing cost. Trimming 50 pages of padding saves $0.60 a copy on a standard black-and-white paperback.
- Pricing paperbacks just under $9.99. The lower rate below that threshold can cost more than the price cut gains.
Need the page count first? Use the page count calculator, then size your cover with the cover size calculator.