The Two Kindle Royalty Plans
Kindle ebooks earn royalty under one of two plans, and KDP selects automatically based on list price unless the plan is forced. The 70% plan pays a much higher rate but subtracts a delivery fee tied to file size; the 35% plan pays a flat rate with nothing subtracted.
Formulas
35% plan: Royalty = List price × 0.35
70% plan available only for list price $2.99–$9.99
The delivery fee exists because Amazon's servers transmit the file to a reader's device on every purchase, and a larger file costs Amazon more to deliver — a heavily illustrated ebook with a large file size can lose a meaningful share of its 70% royalty to delivery fees alone, sometimes enough that the 35% plan pays more per sale.
When 35% Actually Pays More
The 70% plan is not automatically the better choice, particularly for large files at the low end of the qualifying price band.
A large file at a low price can favour 35%
A $2.99 ebook with a 20 MB file (common for image-heavy books) pays a $3.00 delivery fee on the 70% plan — more than the entire list price — leaving a negative royalty, which KDP floors at zero. The 35% plan on the same book pays $1.05 flat, clearly better.
Most text-only ebooks favour 70% comfortably
A typical novel's Kindle file runs 1–3 MB, so the delivery fee is small — 15 to 45 cents — leaving the 70% plan clearly ahead of 35% across almost the entire qualifying price range.
Compressing images shrinks the delivery fee directly
Since the fee is charged per megabyte, reducing image resolution or compression in an illustrated ebook lowers the delivery fee on every single sale for the life of the title — a one-time file optimisation with a permanent per-sale payoff.
Print and Kindle Royalty Are Unrelated Calculations
A book sold in both formats earns royalty under two completely separate formulas. Print royalty subtracts a printing cost driven by page count and paper choice; Kindle royalty subtracts a delivery fee driven by file size in megabytes. Neither figure carries over to the other format.
This is why a title can be highly profitable in one format and marginal in the other — a long, image-heavy book can carry a high print cost per copy while also carrying a high Kindle delivery fee, compounding the same underlying problem (length and file weight) across both royalty calculations independently.