AMAZON KDP eBook Royalty Calculator
Calculate how much you’ll make on Amazon KDP
The fundamental royalty structure for Kindle eBooks comprises two choices: a 35% royalty rate and a 70% royalty rate.
70% Royalty Rate
Under the 70% Royalty Rate, prices ranging from $2.99 to $9.99 qualify for a 70% royalty rate. If you opt for the 70% royalty, a delivery cost may be applicable, depending on the size of your digital file, and this cost is deducted from your total royalty.
Further details on delivery costs are provided later in this article.
35% Royalty Rate
For the 35% Royalty Rate, all price points from $0.99 to $200 are eligible for a 35% royalty rate.
In the European stores, both royalty rates incur a VAT (Value Added Tax) cost.
VAT is specific to European stores, including Amazon Germany, Amazon France, Amazon Italy, and Amazon Spain. It functions similarly to sales tax in the US, applying to goods and services.
• Germany – 7%
• France – 5.5%
• Spain – 4%
• Italy – 4%
Determining the optimal royalty rate depends on various factors. For prices between $0.99 and $1.99 (35% royalty rate), it is suitable for launch periods when aiming to sell more copies at a smaller profit or without a profit to garner reviews and enhance keyword rankings.
On the other hand, price points from $2.99 to $4.99 (70% royalty rate) are more favorable for established books with good rankings and positive reviews, facilitating higher profits per sale. For prices exceeding $4.99, a stronger brand or justified content is advisable.
For a detailed understanding of Amazon KDP eBook pricing technicalities, refer to this resource.
Delivery cost, applicable to the 70% royalty rate, incurs fees of $0.15/MB for the US, £0.10/MB for the UK, and €0,12/MB for the European marketplaces.
Digital file size, a metric used for fair and standardized delivery cost calculation, determines the total cost as the product of digital file size and delivery cost.
The calculation for delivery cost is: Digital file size x Delivery cost
An Example Scenario:
Let’s say your manuscript word file is 4 Mb. You upload, your manuscript to Amazon KDP and your file is converted and compressed to 0.8 Mb.
In this case, your delivery costs will be $0.15*0.8 = $0.12.
Determining the digital file size after compression is not precise due to variables like the number of images. However, the reduction typically falls within the range of 4 to 7 times smaller. The most accurate method is to upload your manuscript to Amazon KDP and check the Kindle eBook Pricing in step 3 of the upload process.
