Amazon KDP Royalty Calculator: How to Maximize Your Earnings in 2025
This comprehensive guide breaks down Amazon's royalty structure, explains the 35% vs 70% tiers, covers delivery fees, international royalties, and provides strategies to maximize your author income.
Pro Tip: Understanding royalties is key to building a profitable author business. Published.: The Proven Path From Blank Page To 10,000 Copies Sold by Chandler Bolt covers this in detail.
Understanding Amazon KDP royalties is the difference between earning pocket change and building a sustainable author income. Yet most authors don't fully understand how royalties work, leaving thousands of dollars on the table every year.
Amazon offers two royalty options—35% and 70%—but the choice isn't always obvious. Pricing, delivery costs, marketplace differences, and book format all affect your actual earnings. This comprehensive guide breaks down everything you need to know about KDP royalties and shows you exactly how to calculate and maximize your income. For print books, understanding printing costs and pricing strategies is equally important.
Whether you're publishing your first book or optimizing your existing catalog, this guide will help you make data-driven decisions that increase your royalties without sacrificing sales volume. Don't forget to also consider Kindle Unlimited enrollment as part of your overall revenue strategy.
Understanding KDP Royalty Tiers
The 35% Royalty Option
The 35% royalty option is available for all eBooks regardless of price. It's the default option and has fewer restrictions, but obviously pays less per sale.
Price Range:
$0.99 - $200.00
Available Markets:
All Amazon marketplaces worldwide
Calculation:
List Price × 35% = Your Royalty
Example:
$2.99 book × 35% = $1.05 per sale
The 70% Royalty Option
The 70% royalty option pays double the 35% rate but comes with specific requirements and delivery fee deductions.
Price Range:
$2.99 - $9.99 (most markets)
Available Markets:
Limited to specific countries (US, UK, DE, FR, ES, IT, NL, JP, BR, CA, MX, AU, IN)
Calculation:
(List Price × 70%) - Delivery Costs = Your Royalty
⚠️ Important: Delivery Fees
Amazon charges $0.15 per MB for delivery. A 5MB eBook costs $0.75 in delivery fees, which is deducted from your royalty.
Example:
$4.99 book × 70% = $3.49
$3.49 - $0.75 delivery = $2.74 per sale
Paperback Royalties Explained
Paperback royalties work differently than eBook royalties. Amazon calculates your royalty by subtracting printing costs from your list price, then taking 60% of what remains.
Paperback Royalty Formula
Royalty = (List Price - Printing Cost) × 60%
Printing costs vary based on page count, ink type (black & white vs color), and trim size. A 200-page black & white paperback costs approximately $3.65 to print in the US.
Example Calculation:
List Price: $12.99
Printing Cost: $3.65
($12.99 - $3.65) × 60% = $5.60 per sale
⚠️ Expanded Distribution Royalties
If you enable Expanded Distribution (selling through bookstores and libraries), your royalty drops to 40% instead of 60%.
Formula: (List Price - Printing Cost) × 40%
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Factors That Affect Your Royalties
File Size (eBooks Only)
For 70% royalty eBooks, Amazon charges $0.15 per MB in delivery fees. This can significantly impact your earnings, especially for image-heavy books.
Optimization Tips:
- • Compress images before uploading
- • Use JPEG instead of PNG for photos
- • Aim for under 3MB total file size
- • Remove unnecessary formatting
Marketplace Differences
Royalty rates and pricing requirements vary by Amazon marketplace. The 70% option isn't available in all countries.
70% Royalty Available In:
US, UK, Germany, France, Spain, Italy, Netherlands, Japan, Brazil, Canada, Mexico, Australia, India
35% Only:
All other Amazon marketplaces
Currency Exchange
When you sell in international marketplaces, Amazon converts your royalties to USD. Exchange rates fluctuate, affecting your actual earnings. Amazon updates exchange rates monthly.
Strategies to Maximize Your Royalties
1. Price Strategically
The sweet spot for most fiction is $3.99-$5.99. This maximizes the 70% royalty while remaining competitive. Non-fiction can often command $7.99-$9.99.
Price Testing Strategy:
- 1. Launch at $4.99 for maximum royalty per sale
- 2. After 30 days, test $3.99 to increase volume
- 3. Monitor total earnings (price × sales × royalty rate)
- 4. Adjust every 90 days based on data
2. Optimize File Size
Reducing your eBook file size from 5MB to 2MB saves $0.45 per sale on delivery fees. Over 1,000 sales, that's $450 in your pocket.
File Size Impact:
2MB file: $0.30 delivery fee
5MB file: $0.75 delivery fee
Savings: $0.45 per sale
3. Choose the Right Royalty Option
Don't automatically choose 70%. Sometimes 35% earns more, especially for books under $2.99 or over $9.99.
When to Use 35%:
- • Pricing below $2.99 (70% not available)
- • Pricing above $9.99 (70% not available)
- • Large file sizes (delivery fees eat into 70%)
- • Selling primarily in non-70% countries
4. Price Paperbacks for Profit
Always calculate printing costs before setting your paperback price. Aim for at least $3-4 royalty per sale to make print worthwhile.
Minimum Pricing Formula:
Printing Cost + $5 (minimum profit) ÷ 0.60 = Minimum List Price
Real-World Royalty Examples
Example 1: Fiction eBook at $4.99
List Price: $4.99
Royalty Rate: 70%
File Size: 2MB
Delivery Fee: $0.30
Calculation: ($4.99 × 0.70) - $0.30
Royalty per sale: $3.19
At 100 sales/month: $319/month
Example 2: Non-Fiction eBook at $9.99
List Price: $9.99
Royalty Rate: 70%
File Size: 4MB
Delivery Fee: $0.60
Calculation: ($9.99 × 0.70) - $0.60
Royalty per sale: $6.39
At 50 sales/month: $319.50/month
Example 3: Paperback at $12.99
List Price: $12.99
Page Count: 200 pages
Printing Cost: $3.65
Royalty Rate: 60%
Calculation: ($12.99 - $3.65) × 0.60
Royalty per sale: $5.60
At 30 sales/month: $168/month
Frequently Asked Questions
Can I change my royalty option after publishing?
Yes! You can switch between 35% and 70% royalty options anytime by updating your book's pricing and rights. Changes typically take effect within 24-72 hours.
How often does Amazon pay royalties?
Amazon pays royalties approximately 60 days after the end of the month in which the sale occurred. For example, January sales are paid around the end of March.
Do I pay taxes on KDP royalties?
Yes, KDP royalties are taxable income. US authors receive a 1099-MISC if they earn over $600/year. International authors may need to complete tax forms to avoid withholding. Consult a tax professional for your specific situation.
What's the minimum payout threshold?
For direct deposit (EFT), the minimum is $10. For check payments, it's $100. If you don't meet the threshold, your balance rolls over to the next month.
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📚 Master Royalties & Author Income
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