Understanding KDP’s royalty structure is essential for pricing your book correctly and setting realistic income expectations. The system is relatively simple, but there are key details that can significantly impact how much you earn per sale.

For Kindle ebooks, KDP offers two royalty tiers: 70% and 35%. The 70% royalty applies to ebooks priced between $2.99 and $9.99 in most major markets. Your actual earnings are calculated as 70% of the list price minus a small delivery fee based on file size (typically $0.01–$0.06 for text-based books, but higher for image-heavy files).

The 35% royalty applies to ebooks priced below $2.99 or above $9.99. While there is no delivery fee at this level, the lower royalty rate means you will usually earn significantly less per sale.

Example: A $4.99 ebook at the 70% tier earns about $3.44 after delivery costs. The same book priced at $1.99 (35% tier) earns roughly $0.70. This difference is why most authors price within the 70% range.

The 70% tier is not available worldwide. It applies in major markets like the United States, United Kingdom, Canada, Australia, and parts of Europe. In regions where it is not supported, Amazon defaults to the 35% royalty regardless of price.

There is also a price-matching rule. If your ebook is sold for less on another platform, Amazon may match that lower price, and your royalty will be calculated on the reduced price. Authors enrolled in KDP Select avoid this issue because their ebook is exclusive to Amazon.

For print books, royalties are calculated differently. KDP uses a tiered royalty structure where authors typically earn 50%–60% of the list price minus printing costs, depending on the marketplace and pricing. Always check the KDP pricing calculator to see your exact royalty before publishing.

The print royalty formula is:

Print Royalty = (Royalty Rate × List Price) – Printing Cost

Printing costs depend on factors like page count, trim size, ink type (black-and-white or color), and paper type. For example, a 300-page black-and-white paperback might cost around $4.45 to print. At a $15.99 list price with a 60% royalty rate, the royalty would be approximately $5.14 per sale.

For expanded distribution (non-Amazon sales), the royalty is lower. KDP typically pays around 40% minus printing costs for books sold through external retailers. This is one reason many authors use other distribution platforms for non-Amazon sales.

KDP payments are made on a delay. Royalties are paid approximately 60 days after the end of the month in which the sale occurred. Payments can be received via direct deposit or check, depending on your settings and location.

Sources:

• Amazon KDP: Royalties in Kindle Direct Publishing
• Amazon KDP Printing Cost Calculator
• KDP Help Center: About KDP Pricing