What royalty rate does KDP pay?

60% of list minus printing for paperback/hardcover on Amazon. 40% of list minus printing on expanded distribution. 35% or 70% on Kindle depending on price and delivery.

Is 70% always better than 35% on Kindle?

Almost always, when your price falls in the $2.99–$9.99 window. Outside that window you can only choose 35%.

Why is my paperback royalty so low?

Usually a high page count, color printing, or pricing too close to the print cost. Color paperbacks need a noticeably higher list price to leave room for royalty.

Does KDP deduct ad spend from royalty?

No — Amazon Ads bills you separately. Royalty pays out gross of ad spend, so you have to subtract ads yourself to see real profit.

KDP Profit Calculation Guide

KDP royalty numbers look simple until you publish — then surprises appear in the printing cost, the 70% threshold, and expanded distribution. Here's the full profit math.

The KDP profit formula

Paperback/hardcover royalty = (list price × 0.60) − printing cost. Kindle royalty = list price × (0.35 or 0.70) − delivery fee on the 70% tier. Expanded distribution pays 40% (not 60%) of list, minus printing. There is no app fee, processing fee, or shipping cost — Amazon handles all of that. Your only real cost is printing for physical books.

Print cost is the silent margin killer

Black-and-white paperback: ~$1 fixed fee + $0.012 per page (US). A 300-page paperback costs ~$4.60 to print. Color (Premium) jumps to $0.07/page — the same 300 pages cost $22.00 to print, which often destroys royalty unless you price aggressively. Always run the math before committing to color interiors.

Kindle: 35% vs 70%

The 70% tier requires: list price between $2.99 and $9.99, enrolled in certain Kindle stores, and an additional per-MB delivery fee deducted from royalty. Outside that range you earn 35% with no delivery fee. For most books, $2.99–$9.99 on the 70% tier is dramatically more profitable.

Worked example — paperback

200-page B&W paperback, priced $12.99: royalty = ($12.99 × 0.60) − ($1.00 + $0.012 × 200) = $7.79 − $3.40 = $4.39 per copy on Amazon US. Expanded distribution on the same book: ($12.99 × 0.40) − $3.40 = $1.80 per copy.

Worked example — Kindle and hardcover

Kindle $4.99 on 70%: ~$4.99 × 0.70 − (small delivery fee ~$0.06 for a 2MB file) = ~$3.43 per sale. Hardcover 250-page B&W priced $24.99: ($24.99 × 0.60) − ($6.80 fixed + page cost) ≈ ~$8.50 per copy.

Pricing for real profit

Set list price so royalty per copy is at minimum $3–$5 on paperback and $2–$4 on Kindle — anything less and ad spend or returns wipe out the month. Use the KDP Royalty Calculator to test prices before publishing instead of guessing.

Frequently asked questions

What royalty rate does KDP pay?: 60% of list minus printing for paperback/hardcover on Amazon. 40% of list minus printing on expanded distribution. 35% or 70% on Kindle depending on price and delivery.
Is 70% always better than 35% on Kindle?: Almost always, when your price falls in the $2.99–$9.99 window. Outside that window you can only choose 35%.
Why is my paperback royalty so low?: Usually a high page count, color printing, or pricing too close to the print cost. Color paperbacks need a noticeably higher list price to leave room for royalty.
Does KDP deduct ad spend from royalty?: No — Amazon Ads bills you separately. Royalty pays out gross of ad spend, so you have to subtract ads yourself to see real profit.

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