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    ge is five percent. To calculate the royalty you earn per book sold you multiply five percent, or .05, times $20. The result equals $1. So that’s the royalty you earn for every book the p
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    If you’re going to make a living by writing books, you need to understand how a book royalty gets calculated. That’s how the author gets paid, ultimately, if the book becomes a successful bestseller. What’s more, the royalties the publisher expects the book to earn determine the advance the publisher will pay the writer up front.

    Royalty Accounting Only Starts Off Simple

    Royalty calculations start out pretty simple. Royalties get calculated by multiplying the price of a book by the royalty percentage. Sometimes, the price used in the calculation is the retail price that the customer pays for the book in some bookstore.

    Assume that you’ve written a book that retails for $20. Further assume that the royalty percentage is five percent. To calculate the royalty you earn per book sold you multiply five percent, or .05, times $20. The result equals $1. So that’s the royalty you earn for every book the p

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    bestseller. What’s more, the royalties the publisher expects the book to earn determine the advance the publisher will pay the writer up front.

    Royalty Accounting Only Starts Off Simple

    Royalty calculations start out pretty simple. Royalties get calculated by multiplying the price of a book by the royalty percentage. Sometimes, the price used in the calculation is the retail price that the customer pays for the book in some bookstore.

    Assume that you’ve written a book that retails for $20. Further assume that the royalty percentage is five percent. To calculate the royalty you earn per book sold you multiply five percent, or .05, times $20. The result equals $1. So that’s the royalty you earn for every book the p

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    f Simple

    Royalty calculations start out pretty simple. Royalties get calculated by multiplying the price of a book by the royalty percentage. Sometimes, the price used in the calculation is the retail price that the customer pays for the book in some bookstore.

    Assume that you’ve written a book that retails for $20. Further assume that the royalty percentage is five percent. To calculate the royalty you earn per book sold you multiply five percent, or .05, times $20. The result equals $1. So that’s the royalty you earn for every book the p

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    lculation is the retail price that the customer pays for the book in some bookstore.

    Assume that you’ve written a book that retails for $20. Further assume that the royalty percentage is five percent. To calculate the royalty you earn per book sold you multiply five percent, or .05, times $20. The result equals $1. So that’s the royalty you earn for every book the p

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    ge is five percent. To calculate the royalty you earn per book sold you multiply five percent, or .05, times $20. The result equals $1. So that’s the royalty you earn for every book the publisher sells.

    Many authors and agents prefer royalties based on retail prices. The calculation is simple to understand. It’s simple to compute. And there are limited opportunities for argument about whether the calculations are correct.

    Big Authors Often Do It Differently

    Some very powerful authors receive a set royalty amount per book—such as $1—which is essentially a variation of the royalty based on a retail price. The agent, through his agent, says something to the publisher such as, “I don’t care what you sell it for, just give me $1.”

    Wholesale-price Royalties are Common—and Complicated

    Sometimes, the price used in the calculation is the wholesale price that the publisher receives from t

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