Understanding KDP Royalties on Amazon.com

The US marketplace accounts for over 80% of English-language ebook sales globally, making it the single most important market for self-published authors. Amazon KDP offers two royalty tiers for ebooks: 35% on books priced below $2.99 or above $9.99, and 70% for books priced between $2.99 and $9.99. Choosing the right tier is the most impactful pricing decision you will make.

For paperbacks on Amazon.com, the June 2025 royalty restructure introduced tiered rates: 60% royalty for books priced at $9.99 or above, and 50% for books below that threshold. This is a significant change from the previous flat 60% rate. After subtracting printing costs (approximately $0.85 base plus $0.012 per page for black-and-white), your net royalty can vary dramatically based on page count and list price.

US-based authors must file a W-9 with Amazon to receive royalties without tax withholding. Non-US authors can reduce withholding rates by submitting a W-8BEN and claiming benefits under their country's tax treaty with the United States. Without proper tax documentation, Amazon withholds 30% of your US royalties — a substantial reduction that many new authors overlook.

Expanded distribution on Amazon.com extends your paperback to third-party sellers, libraries, and academic institutions. The royalty rate for expanded distribution is 40% minus printing costs, which is lower than the standard channel. For most self-published authors, expanded distribution is only profitable on shorter books with lower printing costs. Use the calculator above to compare standard versus expanded earnings for your specific book.

Kindle Unlimited page reads (KENP) are an important revenue stream for US authors enrolled in KDP Select. The current KENP rate hovers around $0.00482 per page read. A 300-page novel fully read earns approximately $1.45 per borrow — competitive with a $2.99 ebook at 70% royalty. Romance, thriller, and sci-fi authors in the US market frequently earn more from KU borrows than direct sales.