How to pay royalties

I don’t know if I understand well how royalties are paid.

Let’s say I earn 2000 $ in a quarter. I don’t owe anything right?

But if I earn 4000$. Does the 5% royalty will apply to the 4000$ or the 1000$ ( which is the amount that surpasses the 3000$)

thanks :slight_smile:

2nd answer here seems good:

Basically, sounds like you would pay royalties on the $1000 (after the initial free $3000)