How Author Royalties Are Calculated

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 …