Kindle Income Formula

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Let’s say you have a target income of $5,000 per month. You might want to break that down.

Let’s take an example of an author with 10 books published already. If one is selling 500 copies per month at $2.99, two are averaging 100 copies per month at $2.99 and $3.49, and the other three around 10 copies per month at $3.99, $4.49 and $4.99.

There are two way of approaching this. First, we could play with the sliders to see the following:

  • 600 copies per month at $2.99 = $1250 per month in royalties.
  • 150 copies per day at $2.99 = $300 per month
  • 150 copies at $3.49 = $400 per month
  • 30 copies per month at an average price of $4.49 = $100
  • Total royalties from the above = $1,950.

Or, we could look for the point on the sliders where we find 930 copies per month with 6 books at an average of $3.49. This brings us out around $2,200, making 151 sales per title per month.

Either way, we know our author needs to make around another $3,000 to hit that $5,000 per month target.

One way to approach it would be to slide the income up to $5,000 and then slide the number of books up to see how many titles she might expect to have to generate at the current level of success to earn $5k. As it turns out, that number is 14.

Another way is to look at just the $3,000 she still needs to earn. If we move the income slider back down to $3,000, it’s no surprise to learn she needs another 8 books at $3.49 selling around 154 copies per month. That matches the previous equation, just disregarding the 6 books already published.

But what if we change the price? By playing with the price slider, we can see if we published future books at $2.99, we would need to put out another 10 books before we hit the magic number. If we up the price to $4.49, we would only need to do 7.

Or we could look at it another way. Moving the slider, we can see that with 6 books at an average of $3.49, our author needs to sell 2,050 books per month, or 342 books per title. Since she has one book selling at 600 copies per month and 2 selling 150 copies per month, before she decides to double her output, it might be worth taking a closer look at those 3 non-selling books. Could they be promoted, repackaged or in some other way tweaked to narrow the gap?

Of course, these are not questions the sliders can answer. We need other tools for that.

This calculator is based on 70 percent royalties from Amazon, so it only covers prices from $2.99 to $9.99. If you want a more detailed calculator, download the Excel version of the Kindle Income Calculator below:

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