How do book royalties work and how much do authors make?
Royalty rates look simple until you see what they are a percentage of. Here is how the main models work, what survey data says authors earn, and what the tax office expects.
A book royalty is the share of each sale that goes to the author, set as a percentage of either the list price or the net revenue. The base matters as much as the percentage: a lower rate on a larger base can pay more. Most authors earn modest amounts, so the terms deserve a close read.
ShelfPublisher pays 30% of the net revenue per copy and reports it every quarter, so you see exactly how your royalty is built. Request access
What are book royalties?
Book royalties are payments to the author for each copy sold, calculated as a percentage under a publishing contract or a platform's terms. They are paid on sales, not up front.
Two bases are common:
- List price: the percentage applies to the cover price, usually excluding tax.
- Net revenue: the percentage applies to what the publisher actually receives after the retailer's discount, printing cost and returns.
The same 30% means different money on each base, so always ask which one the contract uses.
What are typical book royalties?
Typical royalties depend on the format and the route: platforms publish fixed percentages, while traditional contracts are negotiated per book. Here are the KDP figures, as of November 2026.
| Route | Royalty basis |
|---|---|
| KDP print, standard distribution | 50% or 60% of list price (excluding tax), minus printing costs |
| KDP print, Expanded Distribution | 40% of list price, minus printing costs |
| KDP eBook, 70% option | List price from $2.99 to $12.99 on Amazon.com, in listed sales territories |
| KDP eBook, other cases | 35%, including sales outside the listed territories and public domain works |
| ShelfPublisher | 30% of net revenue per copy |
The top of the KDP 70% price band rose from $9.99 to $12.99 on July 7, 2026. The rate for print depends on list price and marketplace. Traditional contracts vary by publisher and format, so compare the base and the deductions rather than the headline number.
How much do authors make?
Most authors earn little from books alone. In the Authors Guild 2023 survey (2022 income), the median book income was about $2,000 for all US authors and about $5,000 including other author-related income.
Full-time authors reported a median of $10,000 from books and about $20,000 including related income. Full-time self-published authors had a median of $12,800 from books. Genre changes the picture:
- Romance: $31,725
- Graphic novels: $15,000
- Mystery, thriller and suspense: $10,000
- Literary fiction: $5,000
In the UK, the ALCS earnings survey (2022, carried out by CREATe) put median earnings of professional authors from writing at £7,000, down from £12,330 in 2006. That is a 33.2% fall in nominal terms and 60.2% after inflation. The share of authors earning all their income from writing fell from 40% to 19%. These UK figures come from a secondary report of the survey.
ShelfPublisher shows one price per book and one royalty rule: 30% of the net revenue per copy. No printing costs, no stock, no ISBN to buy.
Is self-publishing worth it?
Self-publishing can be worth it when you value control and a larger share per sale, and when you plan for the work of reaching readers. The survey data shows both sides: full-time self-published authors reported $12,800 median book income, against $10,000 for all full-time authors, yet the all-author median stays low.
Before you decide, add up the costs. Our guide to what it costs to self-publish a book lists editing, covers, ISBNs and printing, with sources.
Print on demand removes the stock risk, since a copy is printed when it is ordered. You can read how that works in print on demand for books. Whether it is profitable per copy depends on your price, the retailer's discount and the printing cost.
Reach matters for income. If you want bookstores to be able to order your book, see how to get your book into bookstores.
How are book royalties taxed?
Royalties are taxable income in both countries, and the rules depend on whether writing is a business. This is general information, not tax advice; confirm details with a tax adviser.
United States. According to TurboTax guidance (a secondary source, not the IRS), royalties from an active writing business generally go on Schedule C and are subject to self-employment tax. Passive royalties, such as inherited ones, go on Schedule E without self-employment tax.
United Kingdom. HMRC's £1,000 trading allowance per tax year covers trading income (as of November 2026, GOV.UK):
- If gross income is £1,000 or less, you generally need not tell HMRC.
- Above that, you can deduct the allowance instead of actual expenses, but not both.
- The allowance cannot be used to create a loss.
How do royalties work with ShelfPublisher?
You pay one price per book and keep your copyright; the book is published under the imprint of Orbita Media, an international publishing house with more than 1,000 published titles. Your price is €35 for one slot, or €20 per book in the largest package.
What the publishing house does:
- Checks interior and cover, assigns an ISBN from its own block and reports the metadata to the bibliographic directories
- Lists the book in the wholesale catalogs that bookstores order from, reaching more than 50,000 bookstores, including 27,000+ in the US and 9,500+ in the UK
- Orders print on demand and monitors it, so there is no stock to buy
- Collects the revenue and credits your share to your wallet
The book can be ordered from retailers such as Amazon, Barnes & Noble, Bookshop.org, Waterstones, Blackwell's and Foyles. Whether a bookstore puts it on its shelf is the bookstore's decision, and sales are never guaranteed.
Your royalty is 30% of the net revenue per copy: what the publisher receives from the trade, minus the retailer's discount, the cost of making the copy, returns and cancellations, excluding VAT. Statements come quarterly. Your own KDP edition can stay alongside, without KDP Expanded Distribution; see the KDP alternative page, and the pricing page for details.
One price per book, an ISBN included, listing in the catalogs that more than 50,000 bookstores order from. Request access and tell us whether your book is already published.
Amazon, Kindle Direct Publishing and KDP are trademarks of Amazon.com, Inc. or its affiliates. ShelfPublisher is not affiliated with them.
Questions about this article
Do self-published books sell?
Some do, many sell modestly. The Authors Guild 2023 survey put the median book income of all authors at about $2,000, and full-time self-published authors at $12,800. No platform can guarantee sales.
Is print on demand profitable?
Print on demand has no stock to buy, and the printing cost is taken from each sale, so every copy sold carries its own cost. Profit per copy depends on your price, the retailer's discount and the printing cost.
Is Amazon KDP worth it?
KDP pays 50% or 60% of the print list price minus printing costs, and 70% on eBooks from $2.99 to $12.99 (as of November 2026). Whether it pays off depends on your price and how many readers you reach.
Is traditional publishing worth it?
It can be, as a publisher carries production costs and has trade relationships. Survey medians show modest book income for most authors, so the answer depends on the contract, the genre and the sales.
- eBook Royalties - Kindle Direct Publishing – as of November 2026
- Print Book Pricing Page - Kindle Direct Publishing – as of November 2026
- Key takeaways from 2023 author income survey (Authors Guild) – survey of 2022 income; accessed November 2026
- UK Society of Authors, Dec 2022: UK author median incomes dropped 60% since 2006 – secondary report of the ALCS survey, December 2022; accessed November 2026
- Tax Tips for Freelance Writers and Self-Published Authors (TurboTax) – secondary source, not the IRS; accessed November 2026
- Tax-free allowances on property and trading income - GOV.UK – as of November 2026
