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Understanding Ebook Royalties: A Guide for Authors
For self-publishing authors, one of the most exciting and often confusing topics is royalties. An ebook royalty is the portion of the book’s sale price that you, the author, earn. Unlike the complex and often opaque accounting of traditional publishing, ebook royalties are generally straightforward percentages calculated by retail platforms. However, the amount you earn per sale is not as simple as a single number. It’s influenced by your book’s price, the platform you sell on, and even how your book is read. As a publisher that guides authors through this landscape daily, we’re breaking down exactly how ebook royalties work so you can build a pricing and distribution strategy that maximizes your income.
Key Takeaways & Summary
Royalty is Your Cut: An ebook royalty is the percentage of the list price you receive for each copy sold.
Price is the Key Factor: On Amazon KDP, the largest ebook marketplace, your royalty rate is determined by your list price. Books priced between $2.99 and $9.99 are eligible for a 70% royalty, while books priced outside that range receive 35%.
Other Retailers are Similar: Platforms like Apple Books and Kobo also offer royalties around 70%, making it the industry standard for competitively priced ebooks.
“Borrows” are Different: If your book is in Kindle Unlimited (KU), you are not paid a royalty for “borrows.” Instead, you are paid per page read from a monthly global fund, a completely different earnings model.
The Core of Ebook Royalties: The Amazon KDP Model
Understanding Amazon’s Kindle Direct Publishing (KDP) platform is essential, as it accounts for the majority of ebook sales. KDP offers authors two primary royalty options for each book.
The 70% Royalty Option
This is the most desirable option and the one most professional authors aim for. To qualify for it, you must meet several key criteria:
Pricing Window: Your ebook’s list price must be between $2.99 and $9.99 USD.
Copyright Status: The book must be an in-copyright work. Public domain books are not eligible for the 70% rate.
Delivery Costs: A small “delivery fee” based on your ebook’s file size is deducted from your earnings. This fee is typically around $0.15 per megabyte in the U.S. market, but for most text-based novels, the total cost is just a few cents per sale.
The 70% royalty is calculated on the list price before VAT (Value Added Tax) is applied in international markets.
Example: On a
4.99ebooksaleintheU.S.,yourroyaltywouldbeapproximately∗∗3.49** (70% of $4.99), minus a small delivery fee.
The 35% Royalty Option
You will automatically receive a 35% royalty if your book falls outside the 70% option’s requirements. The most common reasons are:
Pricing: Your book is priced below $2.99 or above $9.99.
File Size: Your book has an exceptionally large file size (e.g., an image-heavy textbook), making the delivery costs of the 70% option less profitable. There are no delivery fees deducted from the 35% royalty.
Sales Territory: The sale occurs in a territory where the 70% option is not offered.
Example: On a
0.99promotionalebooksale,yourroyaltywouldbeapproximately∗∗0.35** (35% of $0.99).
Royalties on Other Major Platforms
While Amazon is the largest player, selling “wide” on other platforms is a key strategy for many authors. Their royalty structures are generally competitive.
Apple Books: Offers a flat 70% royalty on all sales, regardless of price.
Barnes & Noble Press: Provides a 65% royalty for ebooks priced between $2.99 and $9.99. The rate drops to 40% for books priced outside that range.
Kobo Writing Life: Offers a 70% royalty for books priced at $2.99 or higher in the US/UK and 45% for books priced lower.
The Kindle Unlimited (KU) Exception: Payment Per Page
It is critical to understand that if your book is enrolled in KDP Select and a subscriber “borrows” it through Kindle Unlimited, you do not receive a royalty.
Instead, you are paid from a monthly “KDP Select Global Fund.” Your earnings are determined by your share of the total pages read by all subscribers that month.
How it Works: Amazon calculates a standardized page count for your book called the KENP (Kindle Edition Normalized Pages).
The Payout: You earn a certain amount for every page a customer reads for the first time. This per-page payout rate fluctuates monthly but is often around $0.0045 to $0.005.
For many authors, especially those who write long books in popular genres like romance and fantasy, earnings from KU page reads can significantly outweigh direct sales royalties.
Choosing your price and distribution strategy is one of the most important decisions you’ll make as an author. By understanding how these royalty systems work, you can price your book intelligently to achieve your financial goals.
Short FAQ
Q: Which royalty option is best on Amazon KDP?
A: For the vast majority of authors, the 70% royalty option is the most profitable. A key publishing strategy is to price your book between $2.99 and $9.99 to qualify for this higher rate.
Q: Do I earn less if Amazon discounts my book?
A: No. If Amazon decides to run a temporary discount on your book, your royalty is still calculated based on the list price you set. The discount comes out of Amazon’s share, not yours.
Q: When do I get paid my royalties?
A: Most platforms, including Amazon KDP, pay royalties on a monthly basis, approximately 60 days after the end of the month in which the sales occurred.
