KDP Glossary  / Earnings

What is KDP Royalty Rate?

KDP royalty rate is the percentage of your book's list price (or net proceeds) that Amazon pays you per sale. eBooks have two tiers: 70% and 35%, depending on list price and marketplace. Paperback royalties are calculated differently — as a percentage of list price minus a printing cost that varies by page count and format. Understanding royalty rates is fundamental to pricing your book for maximum income.

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eBook royalty rates: 70% vs 35%

To qualify for the 70% eBook royalty rate on Amazon.com, your book must be priced between $2.99 and $9.99, be available on all major Amazon marketplaces at the same or lower price, and meet Amazon's standard terms. Amazon also deducts a delivery charge of $0.15 per MB of file size from 70% royalty eBooks. Books priced below $2.99 or above $9.99 automatically fall into the 35% tier, where there is no delivery charge. The 35% tier is also used for books sold in smaller Amazon marketplaces that don't support 70%.

Paperback royalty calculation

KDP paperback royalties are calculated as: (list price × 0.60) minus printing cost. The printing cost depends on page count, trim size, paper colour, and whether it's black-and-white or colour interior. A standard 300-page 6"×9" paperback printed in black and white on white paper has a printing cost of approximately $3.65. At a $14.99 list price: ($14.99 × 0.60) = $8.99 minus $3.65 printing = $5.34 net royalty per sale. Pricing too low eliminates your margin — a $9.99 paperback of the same book only nets about $2.34.

Frequently asked questions

Why is the minimum price for 70% royalty $2.99?

Amazon set the $2.99 floor for the 70% tier as a policy decision to maintain a minimum perceived value for books in the Kindle Store. Below $2.99, Amazon earns more from the 35% of a higher volume of cheap books than from 30% of fewer books — the incentives align at that threshold.

Does KDP Select affect my royalty rate?

KDP Select enrolment is not required for the 70% royalty tier. Select adds Kindle Unlimited page read income on top of regular royalties, but doesn't change your per-sale royalty percentage.

How are royalties paid?

KDP pays royalties approximately 60 days after the end of the month in which sales occurred. So January sales are paid around the end of March. Payment can be made via bank transfer (EFT), wire transfer, or cheque, depending on your country and banking setup in your KDP account.

Related terms

KDP Select KENP Permafree

Related niches

Romance NovelsSelf-Help BooksCookbooksFitness Books

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