Pricing an ebook in Canada starts with the platform rules. To get Amazon KDP’s 70% royalty on Amazon.ca, the list price must be between C$2.99 and C$12.99, and KDP deducts a delivery cost of C$0.15 per megabyte. Outside that band the 35% option applies. Selling directly on Gumroad costs 10% plus $0.50 per sale through your own links. Your price is then a choice inside those rules, based on length, genre, the value of the problem the book solves, and how many copies you need to cover your costs. This guide suits authors who will do the royalty math before choosing a price.
How to start is in the ebook publishing side hustle guide. Editing, cover, and setup costs are in ebook publishing startup costs. Getting the first copies sold is in your first ebook sale. More digital products sit in the digital products hub.
What are Amazon KDP’s ebook price rules for Amazon.ca?
Amazon KDP’s ebook price rules for Amazon.ca allow the 70% royalty option only at list prices from C$2.99 to C$12.99, according to KDP’s list price requirements. The 35% option allows C$0.99 to C$200.00 for files under 3 MB, with higher minimums for bigger files.
| KDP rule (Amazon.ca) | What KDP says |
|---|---|
| 70% royalty list price band | C$2.99 to C$12.99 |
| 35% royalty list price range | From C$0.99 (under 3 MB), C$1.99 (3 to under 10 MB), or C$2.99 (10 MB+), up to C$200.00 |
| 70% royalty calculation | 70% of list price without VAT, minus delivery costs, for sales in 70% territories (eBook Royalties) |
| Delivery cost on Amazon.ca | C$0.15 per MB, minimum C$0.01 (Digital Pricing Page) |
| Delivery cost on 35% option | Not deducted |
KDP has other conditions for the 70% option, including territory rules; read the royalty page before pricing.
Which pricing approaches work for ebooks in Canada?
Ebook pricing approaches in Canada are a fixed standard price, a lower launch price, a series pricing ladder, bundles, and higher direct-sale prices for practical guides with extras.
| Approach | How it works | Works well for | Watch out for |
|---|---|---|---|
| Standard price inside the 70% band | One list price between C$2.99 and C$12.99 on Amazon.ca | Most fiction and short non-fiction | Pricing just below C$2.99 and halving the royalty rate |
| Launch price | Lower price for a set period, then the standard price | New releases | Training readers to wait for discounts |
| Series ladder | Lower-priced first book, standard price for later books | Series fiction | First-book price that never pays back |
| Bundle | Several books or a book plus workbook at one price | Back catalogue, guides | Bundles priced below single sales |
| Direct sale with extras | Higher price on Gumroad with templates, worksheets, or video | Practical how-to guides | Delivering extras without support time priced in |
Check the prices of comparable books in your category on Amazon.ca before choosing, rather than relying on a general “average”.
How do you calculate an ebook price in Canada?
Calculate an ebook price in Canada by working out your royalty per copy at a few prices, dividing your upfront costs by each royalty, and checking which price gives a break-even you can reach.
Step 1: List upfront costs
Editing, cover design, formatting, and ads, from your startup costs budget.
Step 2: Work out royalty per copy
Use the platform’s own formula, including delivery costs and fees.
Step 3: Calculate break-even copies
Upfront costs ÷ royalty per copy.
Step 4: Compare with your category
Check comparable books’ prices and page counts.
Step 5: Set aside tax
Royalties are self-employment income; see the tax set-aside guide.
Illustrative example
This is a teaching sketch with assumed numbers, not a forecast, average, or survey. Suppose your ebook file is 2 MB, you list it at C$6.99 on Amazon.ca on the 70% option, and no tax is included in the list price. The delivery cost is 2 × C$0.15 = C$0.30. The royalty is 0.70 × (C$6.99 − C$0.30) = C$4.68 a copy.
At C$2.49, below the 70% band, the 35% option applies with no delivery cost: 0.35 × C$2.49 = C$0.87 a copy. Moving from C$2.49 to C$2.99 on the 70% option gives 0.70 × (C$2.99 − C$0.30) = C$1.88 a copy, more than double.
Suppose you spent C$600 on editing and a cover. At C$4.68 a copy you need C$600 ÷ C$4.68 = 128.2, so 129 copies to break even. At C$1.88 you would need 320 copies (C$600 ÷ C$1.88 = 319.1).
On Gumroad, suppose you sell a guide with worksheets for 9.00 in US dollars. Gumroad’s pricing page shows the fee as 10% + $0.50; this example assumes US dollars. The fee is $0.90 + $0.50 = $1.40, leaving US$7.60. At the Bank of Canada rate of 1.4246 for October 2, 2026, that is about C$10.83.
What does a sample ebook price sheet look like in Canada?
An ebook price sheet in Canada shows each format and channel with its price and royalty per copy. The table is an illustrative example using the KDP and Gumroad formulas above, a 2 MB file, and assumed prices, not a recommendation for your genre.
| Product and channel (illustrative) | Price | Royalty or net per copy |
|---|---|---|
| Ebook, Amazon.ca, 70% option | C$6.99 | C$4.68 |
| Ebook, Amazon.ca, launch week, 70% option | C$2.99 | C$1.88 |
| Ebook, Amazon.ca, 35% option | C$2.49 | C$0.87 |
| Three-book box set, Amazon.ca, 70% option (4 MB file) | C$12.99 | C$8.67 |
| Guide plus worksheets, Gumroad direct link | US$9.00 | about C$10.83 |
The box set line is 0.70 × (C$12.99 − 4 × C$0.15) = C$8.67. Platform rules and the exchange rate change, so redo the math before you publish.
When should you raise your ebook price in Canada?
Raise your ebook price in Canada when a launch period ends, when you add new material, or when reviews and sales show readers value the book above its price. Test one change at a time and compare royalties per week, not just units.
Keep 70%-option prices inside the C$2.99 to C$12.99 band on Amazon.ca unless you have done the math on the 35% option.
What ebook pricing mistakes are common in Canada?
Common ebook pricing mistakes in Canada are pricing just under C$2.99, ignoring delivery costs on image-heavy files, and permanent launch discounts. Each lowers your royalty per copy.
Compress images to cut megabytes. End launch prices on a date. Do not compare a Gumroad price with an Amazon price without converting currency and fees.
How do GST/HST and income tax affect ebook pricing in Canada?
Ebook royalties and direct sales in Canada are self-employment income reported on Form T2125, and self-employed people pay both CPP shares on net income. GST/HST registration follows the $30,000 small-supplier test across all your side hustles.
Who collects tax on a sale depends on the platform. Gumroad says that since January 1, 2025 it acts as merchant of record and handles sales tax collection. The CRA explains platform rules in its digital-economy overview, and the charge and collect page covers rates for sales you make yourself. The GST/HST registration guide covers registration.
If you sell directly, Gumroad TODO-AFFILIATE is one platform to compare. Royalties and expenses are easier to report with software such as Wealthsimple Tax TODO-AFFILIATE.
This is not tax, legal, or accounting advice.
Which guides sit next to ebook pricing in Canada?
Ebook pricing in Canada sits beside printables pricing, Notion template pricing, and freelance writing.
What are the common questions?
What price gets the 70% royalty on Amazon.ca?
KDP's list price requirements put the 70% royalty option on Amazon.ca at C$2.99 to C$12.99. KDP also deducts a delivery cost of C$0.15 per MB on the 70% option and has other eligibility conditions.
Is C$0.99 a good ebook price in Canada?
It is allowed on the 35% option for small files, but the royalty is about C$0.35 a copy. Run the break-even math before choosing it as a standing price.
Should I sell my ebook on Gumroad or Amazon?
You can use both unless you enrol in a program that requires exclusivity, so check KDP's terms first. Gumroad keeps more of each direct sale (10% plus $0.50 through your own links, 30% through its Discover marketplace). Compare after fees and currency conversion.
Do I charge GST/HST on ebooks in Canada?
It depends on whether you are registered and on who the merchant of record is for the sale. Gumroad says it handles sales tax as merchant of record. This is not tax advice.
How do I know if my ebook price covers my costs?
Divide your upfront costs by your royalty per copy. If the break-even number of copies is out of reach, lower costs or reconsider the price and format.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- List Price Requirements — Amazon Kindle Direct Publishing
- eBook Royalties — Amazon Kindle Direct Publishing
- Digital Pricing Page (delivery costs) — Amazon Kindle Direct Publishing
- Gumroad pricing — Gumroad
- Daily exchange rates — Bank of Canada
- GST/HST for digital-economy businesses: Overview — Canada Revenue Agency
- When to register for and start charging the GST/HST — Canada Revenue Agency
- Charge and collect the GST/HST — Canada Revenue Agency
- Form T2125, Statement of Business or Professional Activities — Canada Revenue Agency
- Contributions to the Canada Pension Plan — Government of Canada