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KDP Royalties Explained: How to Price Your Ebook and Paperback in 2026

By The Authors Prime team · · 12 min read

If you priced your Kindle ebook using advice from before July 2026, there is a good chance you are leaving money on the table. Amazon KDP raised the top of its 70% royalty band from $9.99 to $12.99, but it did not move any books for you, and plenty of guides and social posts still quote the old $2.99 to $9.99 range. This guide explains exactly how KDP royalties work in 2026, with worked examples for ebooks and paperbacks, the hidden rules that can drop a book to 35%, and a simple way to choose a price.

Every figure below comes from KDP's own help pages: eBook List Price Requirements, the Digital Book Pricing Page, Paperback Royalty and Paperback Printing Cost. KDP changes these pages from time to time, so check the current versions before you make a big pricing decision.

KDP royalty rates at a glance

KDP pays a percentage of your list price, and the percentage depends on the format, the price and, for ebooks, where the reader lives. Here is the short version for Amazon.com.

FormatRoyaltyMain condition
Ebook, 70% option70% of list price minus delivery costsList price $2.99 to $12.99, buyer in a 70% territory
Ebook, 35% option35% of list priceAny price from $0.99 (smaller files) up to $200
Paperback on Amazon60% of list price minus printing costList price $9.99 or more
Paperback on Amazon50% of list price minus printing costList price $9.98 or less
Paperback, Expanded Distribution40% of list price minus printing costSold through other stores and distributors

For ebooks, VAT is taken out of the list price before the royalty is worked out. For readers in the United States there is no VAT deduction in the calculation, which keeps the US examples below simple.

How the 35% and 70% ebook royalties really work

You choose a royalty option for each ebook on its Kindle eBook Pricing page. The two options are not just two percentages. They follow different formulas.

  • 35% option: royalty = 35% × (list price − VAT). No delivery costs are deducted, and the rate applies to sales in every country.
  • 70% option: royalty = 70% × (list price − VAT − delivery costs). This rate applies to buyers in KDP's list of 70% territories. Sales to buyers anywhere else are paid at 35%.

The 70% territories include the United States, United Kingdom, Canada, Australia, New Zealand, Germany, France, Italy, Spain, the Netherlands and a long list of other countries on KDP's Digital Book Pricing Page. You do not need to live in one of them. What matters is where the buyer is. Brazil, Japan, Mexico and India are special cases: an ebook earns 70% there only if it is enrolled in KDP Select and its local price meets the 70% requirements. That is why your Bookshelf can show both 70% and 35% for the same book. It is not an error.

Two other limits apply to the 70% option. Books that are mostly public domain content can only use 35%. And if you choose 70%, you must make the ebook available in every territory where you hold the rights.

Delivery costs: the part most authors forget

On the 70% option, KDP charges a delivery cost for every sale, based on the size of your converted ebook file. On Amazon.com it is $0.15 per megabyte, rounded up to the nearest kilobyte, with a minimum of $0.01. Other marketplaces use their own rates, such as £0.10 per MB on Amazon.co.uk and €0.12 per MB on Amazon.de, .fr, .it, .es and .nl. For a text-only novel of 1 to 2 MB this is small. For a cookbook, photo book or children's picture book it can be several dollars per sale, as you will see below.

You can see the file size KDP uses on the Kindle eBook Pricing page after your manuscript is uploaded and converted.

What changed in July 2026: the $12.99 ceiling

From 2007 until July 7, 2026, the 70% option on Amazon.com stopped at $9.99. Any ebook priced at $10 or more was paid at 35%. That pushed authors of long nonfiction, box sets and specialist books into an awkward choice: underprice the book or accept half the royalty rate.

Since July 7, 2026, the 70% band on Amazon.com is $2.99 to $12.99, with equivalent changes in KDP's other marketplaces. According to KDP, nothing else changed: the $2.99 minimum stays, delivery costs still apply, the 35% option is the same, prices for audiobooks with virtual voice are not affected, and translated editions linked to your original ebook inherit your updates automatically.

The important detail is that KDP did not change any books for you. Your current price and royalty option stay as they are until you edit them. That creates two common situations:

  1. Your ebook is priced between $10 and $12.99 on the 35% option. You are now eligible for 70% at the same price, but only if you switch. Open the book's Kindle eBook Pricing page, select the 70% royalty option, check the estimated royalty shown for each marketplace, then click Publish.
  2. Your ebook is at $9.99 because that used to be the ceiling. You can now test a higher price without losing the 70% rate. Whether you should depends on your genre and readers, which we cover in the step-by-step section.

Worked examples: what you actually earn per ebook sale

These examples use Amazon.com, a US buyer, no price match, and the KDP formulas above. Royalties are rounded to the nearest cent, as KDP does.

List priceFile size70% royalty35% royalty
$2.991 MB$1.99$1.05
$4.992 MB$3.28$1.75
$9.992 MB$6.78$3.50
$12.992 MB$8.88$4.55
$13.992 MBNot eligible$4.90

Look at the last two rows. Raising the price by one dollar, from $12.99 to $13.99, cuts the royalty per sale from about $8.88 to $4.90, because the book drops out of the 70% band. The same cliff used to sit at $9.99. If your book needs to be priced above $12.99, you need a clear reason, such as a professional or reference title with a small, specialist audience.

The calculation for the $12.99 example is: 0.70 × ($12.99 − $0.30 delivery) = $8.88. For the $13.99 example it is simply 0.35 × $13.99 = $4.90.

When the 35% option pays more than 70%

Because delivery costs come out before the 70% is applied, a very large file can make 35% the better choice. The break-even point is easy to remember: if the delivery cost is more than half the list price, 35% pays more.

Example: a 25 MB illustrated ebook priced at $4.99 on Amazon.com.

  • Delivery cost: 25 × $0.15 = $3.75
  • 70% option: 0.70 × ($4.99 − $3.75) = $0.87 per sale
  • 35% option: 0.35 × $4.99 = $1.75 per sale

Here the 35% option earns about twice as much. Before you accept that, try to shrink the file. Compressing images, removing duplicate or oversized images and avoiding embedded fonts you do not need can cut the file size a lot. Good ebook formatting keeps images sharp at sensible sizes instead of uploading print-resolution files.

The 20% rule that can quietly drop you to 35%

This is the rule that catches authors who raise their ebook price after the July change. KDP's Digital Book Pricing Page says that on the 70% option you must set your ebook list price at least 20% below the list price of any physical edition of the book on Amazon.

So if your paperback is $14.99, the highest ebook price that meets this rule is $11.99 (80% of $14.99 is $11.99). Price the ebook at $12.99 next to a $14.99 paperback and the book no longer meets the 70% requirements. KDP's terms say that when a book does not meet those requirements, it is paid at 35%, and KDP can adjust royalties it already reported or paid.

To keep a $12.99 ebook on 70%, the paperback and any hardcover need list prices of about $16.25 or more. Check every edition, including large print and hardcover, whenever you change a price.

Price matching and free promotions

Amazon can sell your ebook below your list price to match a lower price for the ebook or a print edition at another retailer, or Amazon's own price for a print edition. On the 70% option, your royalty is then 70% of the price Amazon actually charged, minus taxes and delivery costs. If the matched price falls below the 70% minimum, that sale earns 35%.

If your ebook is free somewhere else, Amazon may make it free too, and your royalty during that period is zero. If you sell in other stores, keep prices consistent and end temporary discounts everywhere at the same time. If you think KDP has price-matched by mistake, contact KDP support; their pricing page says they will review it.

Promotions run through KDP itself work differently. For a book on the 70% option, sales at a Kindle Countdown Deal price still earn 70%, even when the promotional price is outside the normal band. Countdown Deals are only available on Amazon.com and Amazon.co.uk and require KDP Select.

Paperback royalties: the $9.99 line

Paperbacks follow a different formula: royalty = (royalty rate × list price) − printing cost. On Amazon.com the rate is 60% at $9.99 and above, and 50% at $9.98 and below. In the UK the line is £7.99, in Germany, France, Italy, Spain and other euro marketplaces it is €9.99, and in Canada and Australia it is 13.99 in local currency.

Printing cost depends on page count, ink, paper and trim size, and on the marketplace where the book was ordered. For a black-ink paperback on Amazon.com with a regular trim size, books from 24 to 110 pages cost a flat $2.30 to print. Longer books cost $1.00 plus $0.012 per page. So a 300-page novel costs $1.00 + (300 × $0.012) = $4.60 to print.

300-page black-ink paperbackRateRoyalty per sale
$9.98 on Amazon.com50%$0.39
$9.99 on Amazon.com60%$1.39
$14.99 on Amazon.com60%$4.39
$14.99 through Expanded Distribution40%$1.40

One cent separates $0.39 from $1.39 per copy. If your printing cost is high, also check the minimum list price: KDP divides the printing cost by the royalty rate, so our 300-page example cannot be listed below $9.20. Colour interiors cost much more to print, which is why picture books and workbooks often need higher prices to earn anything at all. Use the KDP Printing Cost and Royalty Calculator before you choose the trim size and ink, not after.

Expanded Distribution puts your paperback in front of bookstores and libraries, but the 40% rate means the royalty per copy is much lower. For many short books it is close to zero.

How to choose your ebook price, step by step

  1. Check the file size. Upload your final ebook file and note the size KDP shows. Work out the delivery cost on each main marketplace.
  2. Pick the royalty option. Use 70% unless the delivery cost is more than half your list price or your book is mainly public domain content.
  3. Look at your real competition. Search your exact category on Amazon and note the prices of books readers would buy instead of yours, ideally recent books with steady reviews. Genre fiction readers often expect lower prices than readers of professional nonfiction.
  4. Price your print editions first. Set the paperback above the 60% threshold if you can, then make sure the ebook is at least 20% below every print edition.
  5. Set each marketplace on purpose. KDP can convert your US price into other currencies automatically, but converted prices often end in odd numbers. Set rounded prices for the UK, Canada, Australia and Europe yourself, and check they sit inside each market's 70% band.
  6. Check Brazil, Japan, Mexico and India. If you are not in KDP Select, sales there pay 35% whatever you do. If you are, make sure the local prices meet the 70% requirements.
  7. Test changes one at a time. If you move a $9.99 ebook to $11.99 or $12.99, keep everything else the same for at least a few weeks so you can compare sales and royalties fairly. Price changes can take up to 72 hours to show on Amazon.

If your book is in KDP Select, remember that Kindle Unlimited page reads are paid from a separate monthly fund and are not affected by your list price. Our guide to Kindle+ and audiobooks covers the newer subscription options.

KDP pricing checklist

  • Every ebook priced $2.99 to $12.99 is on the 70% option, unless 35% pays more because of file size.
  • No ebook sits at $13 to $14.99 by accident, where it earns 35%.
  • Each ebook is at least 20% cheaper than its paperback and hardcover.
  • Paperbacks are at $9.99 or more on Amazon.com (£7.99 in the UK) where the book can support that price.
  • Images are compressed and the ebook file size is as small as it can be without losing quality.
  • Prices in other marketplaces are set and rounded on purpose.
  • Prices match at any other stores you sell in, and temporary discounts are ended everywhere.
  • The Bookshelf and monthly reports have been checked for unexpected 35% sales.

If you are setting up your first book, our guide to self-publishing on Amazon KDP walks through every field in the publishing form, and the KDP book launch checklist shows when to lock in your prices before launch day.

Frequently asked questions

What is the highest ebook price that still earns 70% on KDP?

Since July 7, 2026, ebooks listed from $2.99 to $12.99 on Amazon.com can use the 70% royalty option, with equivalent price bands in the other KDP marketplaces. Before that date the ceiling was $9.99. Above $12.99 the book earns 35%.

Do I have to change anything for my existing books to get 70% at the new prices?

Only if the book is on the 35% option. KDP does not switch royalty options for you. If an ebook is on 35% and priced between $2.99 and $12.99, open its Kindle eBook Pricing page, select the 70% option, check the estimated royalty and publish the change.

Why does my KDP report show 35% royalties on a 70% book?

The 70% rate only applies to buyers in KDP's list of 70% territories. Sales to customers outside those territories earn 35%, and in Brazil, Japan, Mexico and India the book must be enrolled in KDP Select to earn 70%. A price match that takes the sale price below the 70% minimum also pays 35% on that sale.

How much are KDP delivery costs?

On Amazon.com, delivery costs are $0.15 per megabyte of the converted ebook file, rounded up to the nearest kilobyte. They are only deducted on the 70% option. Other marketplaces have their own rates, for example £0.10 per MB in the UK and €0.12 per MB in Germany, France, Italy, Spain and the Netherlands.

What royalty do I get on a KDP paperback?

On Amazon.com, paperbacks listed at $9.99 or more earn 60% of the list price minus the printing cost. Paperbacks listed at $9.98 or less earn 50% minus the printing cost. Expanded Distribution sales earn 40% minus the printing cost. Other marketplaces have their own thresholds, such as £7.99 in the UK.

When does KDP pay royalties?

KDP pays royalties about 60 days after the end of the month in which the sales happened, so sales made in November are normally paid at the end of January. Payment method and minimum payment rules depend on your marketplace and bank details in your KDP account.

Want your pricing and setup checked?

The Authors Prime has published 500+ books, and our services start from $200. Our Amazon KDP publishing team can review your royalty options, print and ebook prices and marketplace settings in your own account, so you keep all your rights and royalties. If your file size or print costs are the problem, our formatting team can help, and our book marketing service can plan price tests around a launch or promotion. Any prices we discuss are general guides, not quotes, until we have seen your project. We cannot promise sales, but we can make sure your settings are not costing you money. Book a free consultation or call us at +1 205-301-7751. There is no obligation.

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