Amazon KDP Royalties: A Comprehensive Guide for Authors

Navigating the world of self-publishing with Amazon Kindle Direct Publishing (KDP) involves understanding its royalty structure. KDP offers authors various options for earning income from their books, with rates and terms that differ based on the format (ebook, paperback, hardcover, audiobook), pricing, and distribution choices. This guide provides a detailed overview of Amazon KDP royalties, including recent changes and strategies for maximizing author earnings as of August 2025.

Understanding KDP Royalty Options

Amazon KDP provides distinct royalty plans for different book formats. The primary factors influencing your earnings are the book’s format, its list price, and the distribution channels you select.

Ebook Royalties

For ebooks, KDP offers two royalty options:

• 70% Royalty Option: To be eligible for this higher royalty rate, your ebook must be priced between $2.99 and $9.99. Additionally, the ebook’s price must be at least 20% lower than the lowest list price of its print version. The content must not be in the public domain. File delivery fees are automatically deducted from royalty payouts. This option is available in specific countries, and sales outside these territories will default to the 35% option.
• 35% Royalty Option: This option applies to all ebook sales not meeting the criteria for the 70% option, including books priced below $2.99 or above $9.99, public domain works, or sales in territories not eligible for the 70% rate. Under this plan, file delivery fees are not charged.

Authors should carefully consider their pricing strategy and target markets to determine which ebook royalty option is most beneficial. For instance, books priced outside the $2.99-$9.99 range or those with very large file sizes might be better suited for the 35% royalty plan to avoid significant delivery fees.

Print Book Royalties (Paperback and Hardcover)

KDP offers different royalty structures for print books, with recent adjustments impacting authors.

Paperback Royalties

As of June 10, 2025, KDP has updated its royalty rates for paperbacks:

• For books priced at $9.99 USD or higher (and equivalent thresholds in other marketplaces): Authors receive a 60% royalty rate of the list price, minus printing costs.
• For books priced below $9.99 USD (and equivalent thresholds): The royalty rate has been reduced from 60% to 50% of the list price, minus printing costs. This change, effective June 10, 2025, aims to address increasing operational costs for lower-priced books.

Printing costs for paperbacks vary based on trim size, page count, and ink type (black and white or color), and are deducted from the list price before the royalty is calculated.

Hardcover Royalties

Hardcover books also have a tiered royalty structure:

• For books priced at $9.99 USD or higher: Authors receive a fixed 60% royalty rate of the list price, minus printing costs.
• For books priced below $9.99 USD: Similar to paperbacks, the royalty rate has been adjusted to 50% of the list price, minus printing costs, effective June 10, 2025.

Hardcover printing costs are also dependent on page count, ink type, and the Amazon marketplace, and are deducted from the list price.

Expanded Distribution Royalties

Authors can opt for KDP’s Expanded Distribution, which makes their paperbacks available to other retailers, libraries, and booksellers beyond Amazon. This option comes with a different royalty structure:

• The royalty rate for Expanded Distribution is 40% of the book’s list price, minus printing costs, applicable taxes, and withholding.

It’s important to note that sales through Expanded Distribution are reported separately and may take longer to appear in reports and be paid out compared to direct Amazon sales.

Audiobook Royalties

For audiobooks distributed through Amazon’s Audible platform via ACX (Audiobook Creation Exchange), authors typically earn a 40% royalty rate if they choose exclusive distribution to Audible, Amazon, and iTunes.

Key Factors Affecting Royalties

Several elements directly influence the amount of royalties an author earns:

• List Price: The price set by the author for their book is a primary determinant of royalty earnings, especially with the tiered royalty rates for print books.
• Printing Costs: For print books, these costs are deducted from the list price before royalties are calculated. They depend on factors like page count, ink type, and trim size.
• File Delivery Fees: For ebooks opting for the 70% royalty plan, these fees are based on the ebook’s file size and are deducted from the royalty.
• Territory of Sale: Royalty rates, particularly for ebooks, can vary by country or region.
• KDP Select and Kindle Unlimited: Enrolling an ebook in KDP Select makes it exclusive to Amazon and eligible for Kindle Unlimited (KU). Authors earn royalties based on pages read in KU, which can be a significant income stream, especially for popular genres.
• Promotions and Discounts: While sales promotions can drive volume, they can also impact per-unit royalties, especially if not managed strategically within the KDP royalty structure.

Recent Royalty Changes (2024-2025)

Amazon KDP has implemented significant changes to its royalty structure, primarily affecting print books:

• Print Book Royalty Reduction: Effective June 10, 2025, the royalty rate for paperback and hardcover books priced below $9.99 USD (and equivalent thresholds in other marketplaces) has decreased from 60% to 50%. This change impacts books priced at or below specific thresholds in each marketplace.
• Printing Cost Adjustments: Alongside the royalty rate changes, Amazon has also reduced color printing costs for paperbacks in certain marketplaces, which may help to partially offset the impact of lower royalty rates for authors using color.

Authors are advised to review their pricing strategies for print books to ensure profitability following these changes. Adjusting list prices to meet or exceed the new thresholds may be necessary to maintain previous royalty levels.

Understanding KDP Sales Reports and Payments

Authors can track their earnings through the KDP Sales Dashboard and various detailed reports available in their KDP account. These reports provide insights into sales, KENP reads, and royalty earnings by marketplace and format.

Payment Schedule

Amazon KDP typically pays royalties monthly, approximately 60 days after the end of the month in which the sales were reported. For sales made through Expanded Distribution, this payment window extends to 90 days after the end of the reporting month.

• For example, sales generated in January are usually paid out around the end of March.

Authors can receive payments via direct deposit (EFT), wire transfer, or check, depending on their location and chosen payment method. Direct deposit and wire transfers are generally faster than checks.

Payment Thresholds

While direct deposit and wire transfers have no minimum payment threshold, check payments may require royalties to accrue to a certain minimum amount before being issued. If earnings fall below this threshold, they are carried over to the next payment cycle.

Tax Information for KDP Authors

Authors earning royalties through Amazon KDP are subject to tax regulations. Amazon requires all publishers to provide valid taxpayer identification information to comply with U.S. tax reporting requirements.

• U.S. Persons: U.S. citizens and resident aliens must provide a U.S. Taxpayer Identification Number (TIN), such as a Social Security Number (SSN) or Employer Identification Number (EIN).
• Non-U.S. Persons: International authors may need to provide a TIN from their country of residence to claim tax treaty benefits and potentially reduce U.S. withholding tax. If income is connected with a U.S. trade or business, a U.S. TIN is required.

Failure to complete the tax questionnaire can result in a 30% withholding tax on U.S. source payments. Authors can access and update their tax information through the “Your Account” section of their KDP dashboard.

Strategies for Maximizing KDP Royalties

To optimize earnings on Amazon KDP, authors can implement several strategies:

• Strategic Pricing: Carefully set prices for ebooks within the $2.99-$9.99 range to qualify for the 70% royalty option. For print books, consider pricing them at or above the $9.99 threshold to benefit from the 60% royalty rate, especially after the June 10, 2025, changes.
• KDP Select and Kindle Unlimited: Enrolling ebooks in KDP Select can increase visibility and earnings through Kindle Unlimited page reads, particularly for popular genres.
• Optimize Book Formats: Offer books in multiple formats (ebook, paperback, hardcover) to cater to different reader preferences and maximize sales opportunities.
• Understand Your Reports: Regularly analyze KDP sales reports to track performance, identify trends, and adjust marketing strategies accordingly.
• Consider Expanded Distribution: While offering lower royalties, Expanded Distribution can increase a book’s reach to a wider audience.
• Promotional Activities: Utilize KDP’s promotional tools like Kindle Countdown Deals (for KDP Select titles) to strategically discount books and attract new readers.
• Build a Backlist: Having multiple books available can create a more robust income stream and encourage readers to explore an author’s entire catalog.

By understanding the nuances of Amazon KDP royalties and adapting to the platform’s evolving policies, authors can effectively manage their publishing business and work towards achieving their financial goals.