The Science of KDP Pricing
Key Takeaways
- Psychological pricing ($3.99 vs $4.00) increases conversion by up to 15%
- High-profit sweet spot for Paperbacks is typically $12.99 to $15.99
- Kindle ebooks priced at $2.99 earn 100% more royalty than $0.99 (70% vs 35%)
- Always test local prices (e.g., £9.99 in UK) rather than direct currency conversions
Price too low and you can't afford advertising. Price too high and nobody buys. Here's how to find your sweet spot.
The Core Principle
Price for margin, not volume.
A book that sells 100 copies at $4 profit ($400 total) beats a book that sells 150 copies at $2 profit ($300 total). And the higher-margin book can afford advertising to grow further.
Paperback Pricing
Target $3-5 profit per paperback. This lets you spend $1-2 on Amazon ads per sale while remaining profitable.
Example: 200-Page Book
| List Price | Printing | Amazon Cut | Your Profit |
|---|---|---|---|
| $9.99 | $4.96 | $4.00 | $1.03 |
| $12.99 | $4.96 | $5.20 | $2.83 |
| $14.99 | $4.96 | $6.00 | $4.03 |
| $17.99 | $4.96 | $7.20 | $5.83 |
Why $14.99 Often Beats $9.99
- Perceived value: Readers expect quality at higher prices
- Ad sustainability: You can afford $1.50 CPC at $14.99, not at $9.99
- Competition: Low-content books cluster at $6.99-$9.99
- Returns: Low prices attract bargain-hunters who return more
💡 Test Your Numbers
Enter your page count and compare profit at different price points.
Open Royalty Calculator →eBook Pricing
The 70% vs 35% Decision
Price between $2.99 and $9.99 for the 70% royalty option. Below $2.99 or above $9.99, you're stuck at 35%.
- $0.99: Only $0.35 royalty. Use only for promos.
- $2.99: The minimum for 70%. You earn ~$2.00.
- $4.99: Sweet spot for fiction. ~$3.20 royalty.
- $9.99: Maximum for 70%. ~$6.80 royalty.
Genre Expectations
Price within reader expectations:
- Romance/Thriller: $2.99-$4.99 (KU-heavy, readers expect deals)
- Non-fiction/Business: $4.99-$9.99 (buyers pay for value)
- Technical/Professional: $9.99+ (35% is acceptable)
Hardcover Pricing
Hardcovers command premium prices but have higher printing costs. Target$5-8 profit per unit.
Best for: Non-fiction, gift books, collectible editions, books with high perceived value.
Kindle Unlimited Consideration
If enrolled in KDP Select, your pricing affects whether readers buy or borrow.
- High ebook price ($7.99+): More borrows, fewer purchases
- Low ebook price ($2.99): More purchases, fewer borrows
- Sweet spot ($4.99): Balanced borrow/purchase ratio
Compare your expected royalty per purchase vs. estimated KENP earnings to decide which is more profitable for your book.
Price Testing Strategy
- Start higher: Launch at your target "premium" price
- Monitor 2 weeks: Track sales rank and conversion rate
- Adjust if needed: Drop by $1-2 increments if sales are weak
- Raise for promos: Increase base price before running discounts
Pricing Tools
Royalty Calculator
Compare profit at any price
Break-Even Calculator
Find your sales target
KENP Estimator
Compare KU vs. purchase earnings
Price Parity Checker
Convert across marketplaces
Get Early Access & Updates
Join 5,000+ authors. Get the latest KDP policy changes, KENP rates, and new free tools delivered to your inbox.
Strictly no spam. Unsubscribe at any time. Processing happening via browser encryption.