Why optimal price ≠ highest price
Raise prices and you earn more per book but sell fewer copies. Lower prices and you sell more but earn less per copy. Somewhere in between is the price that maximizes total monthly royalty — and it's almost never the price most authors guess. This optimizer uses price elasticity to find that peak.
Understanding price elasticity
Elasticity measures how much demand changes when price changes. -1.0 means a 10% price hike loses 10% of buyers (revenue stays flat). -1.5 means more sensitive (a 10% hike loses 15% of buyers — revenue drops). For Kindle fiction, elasticity is typically -1.2 to -1.8; non-fiction is less elastic at -0.7 to -1.2. Adjust the slider based on your genre.
How to find your real elasticity
Run two-week price tests: hold price A for 14 days, switch to price B for 14 days and compare unit volume. The ratio of unit changes vs price changes is your elasticity. Plug it into this calculator for a personalized optimum.
When to re-optimize
Re-run this calc every 90 days, after every cover refresh, and whenever a major competitor changes price. KDP markets are dynamic — yesterday's optimum is rarely tomorrow's.
Frequently asked questions
Is this real AI?
It's a price-elasticity model (the same math used by major retailers). The 'AI' framing reflects that it searches and recommends — no neural net required for clean math.
What elasticity should I use?
Default -1.4 for fiction, -1.0 for non-fiction, -0.7 for premium niche or how-to books.
Should I always follow the recommendation?
Use it as a starting point, then A/B test 14 days at the new price and confirm with real data.
Does this work for free promos?
No — free promos are loss leaders for series sales, not revenue optimization.