When you set your book’s list price, you have to make it high enough to cover the cost of printing and the retailer’s discount. Let’s assume you’re printing a 200-page book at CreateSpace. The discount is 20% for sales through CreateSpace, 40% for sales through Amazon, and 60% for Expanded Distribution.*
For B&W books of 110-828 pages printed in the U.S.:
printing cost = (.012 × [# of pages]) + .85
The cost of printing a 200-page book would be
printing cost = (.012 × 200) + .85
printing cost = ( 2.4 ) + .85
printing cost = 3.25
printing cost = $3.25
Now, let’s say you set the list price at $19.95. Here’s what you would receive for sales through expanded distribution:
net = 19.95 – (19.95 × 60%) – 3.25
net = 19.95 – ( 11.97 ) – 3.25
net = 19.95 – 15.22
net = $4.73 Expanded Distribution
The net is what you get paid.
Here’s what you would get for sales through Amazon’s main site:
net = 19.95 – (19.95 × 40%) – 3.25
net = 19.95 – ( 7.98 ) – 3.25
net = 19.95 – 11.23
net = $8.72 Amazon.com
Here’s what you would get for sales through CreateSpace (not Amazon):
net = 19.95 – (19.95 × 20%) – 3.25
net = 19.95 – ( 3.99 ) – 3.25
net = 19.95 – 7.24
net = $12.71 CreateSpace.com
*CreateSpace’s book costs formula is here:
https://www.createspace.com/Products/Book/Royalties.jsp