Understanding KDP Royalty Plans

Amazon Kindle Direct Publishing (KDP) offers authors two primary royalty options for their eBooks: 70% and 35%. Understanding these options is crucial for maximizing your earnings.

70% Royalty Option

This is the most desirable option for authors, offering a higher percentage of the book's list price. To qualify for the 70% royalty, your eBook must meet specific criteria:

• Price: Your book's list price must be between $2.99 and $9.99.
• Territories: The 70% royalty is available for sales to customers in specific territories (e.g., US, UK, Germany, India, Japan, Brazil, Canada, Mexico, Australia, France, Italy, Spain).
• Delivery Costs: Amazon deducts a small 'delivery cost' for each book sold, based on the file size of your eBook.

35% Royalty Option

The 35% royalty option applies if your book does not meet the criteria for the 70% option. This includes:

• Price: Books priced below $2.99 or above $9.99.
• Territories: Sales in territories not covered by the 70% option.
• Delivery Costs: No delivery costs are deducted under the 35% royalty plan.

Understanding Delivery Costs

Delivery costs are a per-megabyte charge for transferring your eBook file to the customer. They are only deducted under the 70% royalty option. The cost varies by territory (e.g., $0.15/MB in the US). A larger file size means higher delivery costs, which directly reduces your net royalty.

Example Royalty Calculation

Let's say your eBook is priced at $4.99 and has a file size of 5 MB (US delivery cost: $0.15/MB).

• List Price: $4.99
• Royalty Rate: 70% (since price is between $2.99 and $9.99)
• Delivery Cost: 5 MB * $0.15/MB = $0.75
• Royalty Calculation: (List Price * Royalty Rate) - Delivery Cost
• Your Royalty: ($4.99 * 0.70) - $0.75 = $3.493 - $0.75 = $2.743 per sale

If the same book was priced at $1.99, it would fall under the 35% royalty plan, and no delivery costs would be deducted. Your royalty would be $1.99 * 0.35 = $0.6965 per sale.

Frequently Asked Questions

• Q: Can I change my royalty option?
  A: You don't choose a royalty option directly. KDP automatically applies the 70% or 35% rate based on your book's list price and the sales territory. You can change your list price at any time to qualify for a different rate.
• Q: How do I reduce delivery costs?
  A: Optimize your eBook file size. Compress images, remove unnecessary metadata, and ensure your formatting is efficient.
• Q: Does KDP offer royalties for print books?
  A: Yes, KDP also offers royalties for paperback and hardcover books, but the calculation is different, involving printing costs and a fixed royalty rate (usually 60% of list price minus printing costs). This calculator focuses on eBooks.
• Q: When do I get paid?
  A: KDP pays royalties approximately 60 days after the end of the month in which the royalties were earned, provided you meet the minimum payment threshold.