- Publishing & Licensing
Royalty Checks 101: How You Actually Get Paid When Your Book Sells on Amazon
TL;DR
When someone buys your book on Amazon, you don’t get the full cover price. Amazon keeps its cut, printing or delivery costs come out next, and the rest—your royalty—shows up in your bank account about 60 days later. This post breaks down every step so you know exactly where your money goes and how to keep more of it.
1. Know Your Amazon Publishing Route
| Option | Typical Royalty Rate | Good to Know |
|---|---|---|
| Kindle Direct Publishing (KDP) eBook | 70 % of list price (if priced $2.99–$9.99) or 35 % (outside that range) | Amazon also charges a small “delivery fee” per megabyte of file size. |
| KDP Print (paperback/hardcover) | 60 % of list price, minus print cost (usually $2–$5 per copy) | Color pages cost more than black-and-white. |
| Audiobook (ACX / Audible) | 40 % if exclusive to Audible; 25 % if you opt for wide distribution | Royalty is split with your narrator if you did a 50/50 “royalty share” deal. |
2. Follow the Money—Step by Step
- Reader buys your book for $9.99.
- Amazon takes its platform fee.
- eBook example: 70 % royalty → you keep $6.99.
- Delivery or print costs come out next.
- eBook delivery fee (say $0.15 for a 1 MB file) → you net $6.84.
- Amazon totals your monthly sales.
- Payment arrives ~60 days later.
- January sales pay out at the end of March.
Pro tip: Check “Reports ▶ Payments” inside your KDP dashboard to see the exact date and amount.
3. Hidden Fees & Deductions
- Returns: eBooks returned within 7 days claw back the royalty.
- Expanded Distribution: If you enable it for print, your royalty drops from 60 % to 40 % after print cost.
- VAT & GST: In some regions Amazon collects tax before calculating your royalty, so the list-price slice is slightly smaller.
4. How to Maximize Your Royalties
| Action | Why It Helps |
|---|---|
| Price between $2.99–$9.99 | Unlocks the 70 % eBook tier. |
| Compress your eBook file | Smaller file size = lower delivery fee. |
| Use black-and-white interiors for print | Color pages raise print cost and lower net royalty. |
| Promote Kindle Unlimited page reads | You earn from the KDP Select Global Fund on top of sales. |
| Launch in multiple formats | eBook + print + audiobook multiplies revenue streams. |
5. Payment Timeline Cheat Sheet
| Month of Sale | Money Hits Your Bank* |
|---|---|
| January | Late March |
| February | Late April |
| March | Late May |
6. Quick FAQ
Q: Do I need a U.S. bank account?
A: No. Amazon pays to most countries via direct deposit, but check KDP’s list to confirm.
Q: What about taxes?
A: Amazon issues a 1099-MISC (U.S.) or equivalent. Set aside ~25 % of earnings unless advised otherwise.
Q: Can I see sales in real time?
A: Yes—use the KDP Reports Beta dashboard for up-to-the-hour data.
Final Takeaway
Royalties aren’t mysterious once you see the slices. Nail your pricing, control your costs, and you’ll know exactly how much each sale puts in your pocket—and when.
Need help optimizing your KDP setup?
Book a free 15-minute consult with Tallawah Group and turn your next royalty check into a bigger one.
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