Amazon KDP eBook Royalty Calculator

How to calculate KDP Royalties?

Amazon Kindle Direct Publishing (KDP) calculates your earnings based on the list price of your book, minus any applicable delivery costs, multiplied by your chosen royalty rate. This calculation ensures that Amazon covers the bandwidth costs for digital delivery while sharing the profits with the author.

Royalty = (List Price - Delivery Cost) x Royalty Rate

Using the KDP Calculator: an example

Step-by-step calculation

• List Price: $9.99
• Delivery Cost: $0.15 (standard for a medium-sized eBook)
• Royalty Rate: 70%
• The Math: ($9.99 - $0.15) × 0.70 = $6.888
• Your Profit: $6.89 per copy sold

Frequently Asked Questions

1. What are delivery costs? Delivery costs are fees charged per megabyte to send your eBook to customers. This only applies to the 70% royalty tier.
2. When is the 35% royalty tier better? If your book file is very large (e.g., image-heavy), the 35% tier might be more profitable because Amazon does not deduct delivery costs from that plan.
3. Are there minimum price requirements? Yes. To qualify for 70% royalties, your book must typically be priced between $2.99 and $9.99. Books outside this range default to the 35% tier.