If you're self-publishing on Amazon KDP, understanding how royalties work is crucial to your success. In this comprehensive guide, we'll break down exactly how Amazon calculates your earnings, the difference between royalty options, and proven strategies to maximize your income.
What Are KDP Royalties?
Royalties are the percentage of each sale that Amazon pays you as the author. Unlike traditional publishing where you might earn 10-15% royalties, self-publishing on KDP offers significantly higher rates—up to 70% for eBooks and 60% for paperbacks.
However, the actual amount you receive depends on several factors:
- Your book's list price
- The royalty option you choose (for eBooks)
- Printing costs (for paperbacks)
- The marketplace where the sale occurs
eBook Royalties: 35% vs 70%
For Kindle eBooks, Amazon offers two royalty options:
| Feature | 35% Royalty | 70% Royalty |
|---|---|---|
| Price Range | $0.99 - $200 | $2.99 - $9.99 |
| Delivery Costs | None | $0.15/MB |
| Best For | Short books, promotions | Most books |
💡 Pro Tip
The 70% option is almost always better for books priced between $2.99 and $9.99. The delivery fee is minimal (typically $0.03-$0.30) and you'll still earn more than the 35% option.
Paperback Royalty Formula
Paperback royalties are calculated differently. Amazon uses this formula:
Royalty = (List Price × 60%) - Printing Cost
For example, if you sell a 200-page book for $12.99:
- 60% of $12.99 = $7.79
- Minus printing cost (~$3.45) = $4.34 royalty
Understanding Printing Costs
Printing costs vary based on:
- Page count: More pages = higher cost
- Ink type: Black & white vs Premium color
- Trim size: Larger books cost more
- Marketplace: US printing is cheapest
Printing Cost Formula (US)
| Ink Type | Formula |
|---|---|
| Black & White | $0.85 + ($0.012 × page count) |
| Premium Color | $0.85 + ($0.07 × page count) |
5 Ways to Maximize Your Royalties
1. Price Strategically
For eBooks, pricing at $4.99-$6.99 often hits the sweet spot—high enough to earn good royalties, low enough to encourage impulse buys.
2. Keep Page Counts Reasonable
For paperbacks, every 100 pages adds about $1.20 to your printing cost. Consider if you can split a 600-page book into a 2-book series.
3. Use Black & White for Fiction
Unless your book requires color images, always choose black & white ink. The difference in printing cost is massive.
4. Optimize File Size for eBooks
Compress images in your eBook to reduce delivery costs. Every MB costs you $0.15 on the 70% royalty option.
5. Consider Multiple Formats
Publish as eBook AND paperback. eBooks have higher margins, but paperbacks reach different buyers. Together, they maximize your total earnings.
Calculate Your Exact Royalties
Use our free KDP Royalty Calculator to see exactly how much you'll earn per book.
Open Royalty Calculator →Use Our Free Calculator
Rather than doing all this math manually, use our free KDP Royalty Calculator. It automatically applies Amazon's current formulas and shows you:
- Exact printing costs
- Your royalty per sale
- Profit margin percentage
- Comparison across marketplaces
We also offer tools for spine width calculation, cover dimensions, and print cost estimation.
📚 Related Guides
• Amazon KDP Cover Size Guide
• 50 Best Free Public Domain Books