Video Transcript
If you’re selling courses on Teachable, transaction fees can quietly eat into your revenue—especially on the Starter plan, where Teachable takes 7.5% of every sale on top of standard payment processing. This guide breaks down exactly what you’ll pay at every revenue level, shows you the precise breakeven point where upgrading saves money, and compares Teachable’s fee structure to platforms that charge zero transaction fees.
Percentage extracted by Teachable on every course sale, on top of 2.9% + $0.30 credit card processing.
Teachable Pricing Schedule
Monthly revenue threshold above which upgrading to Builder ($69/mo annual) saves net money.
Fee Math Analysis
Maximum enrolled students permitted before being forced into the $89/mo Builder plan (free students count).
Teachable Account Limits
Platform transaction fee charged by Ruzuku on all plans, with no student caps or product limits.
Ruzuku Pricing Structure
Teachable Transaction Fees by Plan
Teachable charges a platform transaction fee only on its lowest-tier Starter plan. The Builder, Growth, and Custom plans have zero platform transaction fees. Here's the current fee structure as of 2026:
| Starter | Builder | Growth | Custom | |
|---|---|---|---|---|
| Monthly price | $39/mo | $89/mo | $189/mo | Contact sales |
| Annual price | $29/mo | $69/mo | $139/mo | Contact sales |
| Platform transaction fee | 7.5% | 0% | 0% | 0% |
| Published products | 5 | 10 | 50 | Custom |
| Students | 100 | 1,000 | 5,000 | Custom |
| Payment processing | 2.9% + $0.30 | 2.9% + $0.30 | 2.9% + $0.30 | 2.9% + $0.30 |
The 7.5% Starter plan transaction fee is separate from and in addition to payment processing fees. That means on the Starter plan, you're paying both the 7.5% platform cut and the standard processing fee on every sale.
Payment Processing Fees: What Every Plan Pays
Regardless of which Teachable plan you choose, every transaction is subject to payment processing fees through Teachable:pay (powered by Stripe). These fees apply on top of any platform transaction fee:
- US credit/debit cards: 2.9% + $0.30 per transaction
- International cards: 3.9% + $0.30 per transaction
- US PayPal: 3.49% + $0.49 per transaction
- International PayPal: 4.99% + $0.49 per transaction
These processing fees are industry-standard and comparable to what you'd pay through Stripe on any platform. The difference with Teachable is that Starter plan users pay 7.5% on top of these rates.
The Real Dollar Impact: Fee Calculations at Every Revenue Level
To understand what Teachable's fees actually cost, let's calculate total monthly costs at different revenue levels. These examples assume US credit card payments (2.9% + $0.30) and a $200 average course price (so $500/mo = 2.5 sales, $1,000/mo = 5 sales, etc.).
At $500/month in revenue
| Cost component | Starter ($39/mo) | Builder ($89/mo) |
|---|---|---|
| Platform subscription | $39.00 | $89.00 |
| Transaction fee (7.5% / 0%) | $37.50 | $0.00 |
| Processing (2.9% + $0.30 x 2.5) | $15.25 | $15.25 |
| Total monthly cost | $91.75 | $104.25 |
| You keep | $408.25 (81.7%) | $395.75 (79.2%) |
At $500/month, the Starter plan is slightly cheaper overall. You haven't yet hit the breakeven point where the 7.5% transaction fee exceeds the difference in subscription cost.
At $1,000/month in revenue
| Cost component | Starter ($39/mo) | Builder ($89/mo) |
|---|---|---|
| Platform subscription | $39.00 | $89.00 |
| Transaction fee (7.5% / 0%) | $75.00 | $0.00 |
| Processing (2.9% + $0.30 x 5) | $30.50 | $30.50 |
| Total monthly cost | $144.50 | $119.50 |
| You keep | $855.50 (85.6%) | $880.50 (88.1%) |
At $1,000/month, the Builder plan already saves you $25/month. The 7.5% transaction fee ($75) now significantly exceeds the $50 subscription difference between plans.
At $3,000/month in revenue
| Cost component | Starter ($39/mo) | Builder ($89/mo) |
|---|---|---|
| Platform subscription | $39.00 | $89.00 |
| Transaction fee (7.5% / 0%) | $225.00 | $0.00 |
| Processing (2.9% + $0.30 x 15) | $91.50 | $91.50 |
| Total monthly cost | $355.50 | $180.50 |
| You keep | $2,644.50 (88.2%) | $2,819.50 (94.0%) |
At $3,000/month, the Starter plan costs you $175/month more than the Builder — almost double the subscription price. The 7.5% fee alone ($225) is more than the entire Builder subscription ($89).
At $5,000/month in revenue
| Cost component | Starter ($39/mo) | Builder ($89/mo) |
|---|---|---|
| Platform subscription | $39.00 | $89.00 |
| Transaction fee (7.5% / 0%) | $375.00 | $0.00 |
| Processing (2.9% + $0.30 x 25) | $152.50 | $152.50 |
| Total monthly cost | $566.50 | $241.50 |
| You keep | $4,433.50 (88.7%) | $4,758.50 (95.2%) |
At $5,000/month, you'd be paying $325 more per month on the Starter plan — nearly $4,000 per year in unnecessary fees. At this revenue level, the 7.5% platform fee alone ($375) is more than four times the subscription difference.
The Breakeven Point: When to Upgrade from Starter to Builder
The critical question for Starter plan users: at what revenue level does the 7.5% transaction fee cost more than the difference between the Starter and Builder subscriptions?
The math is straightforward. The Builder plan costs $50/month more than the Starter plan ($89 vs. $39 on monthly billing). The Starter plan's 7.5% transaction fee equals $50 when your monthly revenue hits:
$50 / 0.075 = $667/month
At $667/month in course revenue, upgrading to the Builder plan breaks even. Above that, you're losing money on the Starter plan. If you're billed annually (Starter at $29/mo, Builder at $69/mo), the difference is $40/month, so the breakeven drops to $533/month.
To put this in perspective: if you sell a $200 course, you hit the monthly breakeven with just 3-4 sales per month. If you sell a $100 course, it's 7 sales. These are not big numbers for an active course business.
Teachable's Old Free Plan: What Happened to the $1 + 10% Fee
If you're searching for information about Teachable's free plan fees, here's the backstory: Teachable previously offered a free plan that charged $1 + 10% per transaction. On a $200 course sale, that meant $21 going to Teachable on every transaction — before payment processing fees.
Teachable eliminated this free plan in their 2025 pricing restructuring. It is no longer available for new sign-ups. The lowest tier is now the Starter plan at $39/month with a 7.5% transaction fee.
For existing users who were grandfathered into the old free plan, Teachable has migrated accounts to the current plan structure. If you were on the free plan, check your dashboard to confirm which plan and fee schedule now applies to your account.
For a detailed look at the free plan's history and what replaced it, see our Teachable free plan review.
Hidden Costs Beyond Transaction Fees
Transaction fees get the most attention, but several other Teachable costs can add up:
- Student caps: The Starter plan limits you to 100 students. If you're selling a $50 course and hit 100 students, you're forced to upgrade to Builder ($89/mo) regardless of whether you'd otherwise need to — even though your total revenue is only $5,000 lifetime.
- Product limits: Starter allows 5 published products. Want a sixth? You need the Builder plan (10 products, $69/mo annual), and past ten, Growth (50 products, $139/mo annual).
- Integration limits: The Starter plan allows just 1 third-party integration. If you need both an email marketing tool and a Zapier connection, you'll need the Builder plan.
- International payment surcharge: International credit card transactions cost 3.9% + $0.30 (vs. 2.9% + $0.30 domestic). If a significant portion of your audience is international, this 1% premium adds up. On $2,000/month in international sales, that's an extra $20/month.
- PayPal premium: PayPal processing runs 3.49% + $0.49 per US transaction (vs. 2.9% + $0.30 for cards). If many of your students prefer PayPal, your effective processing rate is higher than the headline card rate.
For a comprehensive analysis of all Teachable costs across plans, see our complete Teachable pricing guide.
How Teachable's Fees Compare to Other Platforms
Teachable's Starter plan is one of the few paid plans in the course platform market that still charges a platform transaction fee. Here's how the major platforms compare:
- Ruzuku — Zero transaction fees on all plans, with no student caps or course limits. Plans start at $99/month. You pay only standard payment processing. (Full Teachable vs Ruzuku comparison)
- Thinkific — 0% if you sell through Thinkific Payments, but 5% on Basic, 2% on Start and 1% on Grow if you keep your own Stripe. No free plan — a 30-day trial, then $40/mo annual for Basic or $82 for Start. (Teachable vs Thinkific)
- Kajabi — Zero transaction fees. Plans start at $179/month ($143/month billed annually) with more built-in marketing tools. (Teachable vs Kajabi)
- Podia — 5% fee on the Mover plan ($49/mo, $42 annual), 0% on Shaker ($99/mo, $84 annual) and on the Earthquaker plan added in 2026 ($179/mo, $150 annual). (Podia review)
Most of these platforms give you a route to 0%, but the route differs. Teachable and Podia want you on a higher plan. Thinkific wants you on its own checkout, and charges 5%, 2% or 1% if you keep your own Stripe. Ruzuku charges nothing extra per sale on any plan and any Stripe account.
Why zero transaction fees matter for growing businesses
Transaction fees are a percentage cost — they scale with your success. A $39/month subscription with 7.5% fees sounds affordable when you're starting out, but the effective cost per month rises as your revenue grows. At $5,000/month in revenue, you're paying $375/month in platform fees alone (plus the $39 subscription).
Platforms with flat monthly pricing (like Ruzuku at $99/month with no transaction fees, student caps, or course limits) become increasingly cost-effective as you grow. The gap widens every month you're on a plan with percentage-based fees.
For a broader look at alternatives, see our 7 Best Teachable Alternatives or take our 2-minute platform quiz for a personalized recommendation.
Frequently Asked Questions About Teachable Transaction Fees
Does Teachable charge transaction fees on all plans?
No. Only the Starter plan ($39/month billed monthly, $29/month billed annually) charges a 7.5% platform transaction fee. The Builder ($89/month), Growth ($189/month), and Custom plans have 0% platform transaction fees. Standard payment processing fees (2.9% + $0.30 for US cards) apply across all plans.
What happened to Teachable's free plan and its 10% fee?
Teachable eliminated their free plan in their 2025 pricing overhaul. The legacy free plan charged $1 + 10% per transaction. It is permanently closed to new creators, making the Starter plan ($39/month with 7.5% fees) the lowest entry tier.
When should I upgrade from the Starter to the Builder plan?
You should upgrade when your monthly course revenue exceeds $533 on annual billing (or $667 on monthly billing). Above those thresholds, the 7.5% transaction fee exceeds the subscription cost difference between Starter and Builder. You should also upgrade if you hit the 100-student cap or need more than 5 published products.
Are payment processing fees the same as transaction fees?
No. Payment processing fees (2.9% + $0.30 per domestic card transaction) go directly to the merchant gateway (Stripe) and apply on every course platform. The 7.5% transaction fee is Teachable's proprietary platform commission and only applies to the Starter plan. On the Starter plan, you pay both.
How much does Teachable cost per month in total?
At $1,000/month in revenue on Starter, you pay $39 subscription + $75 platform fee + $32 payment processing = $146/month (14.6% effective cost). On Builder at $1,000/month, you pay $89 subscription + $0 platform fee + $32 payment processing = $121/month. See the detailed breakdowns above for calculations at $500, $1,000, $3,000, and $5,000 monthly revenue.
Can I avoid Teachable transaction fees by using my own Stripe account?
No. Even if you connect your custom payment gateway through Teachable:pay or custom gateways on eligible plans, Teachable automatically extracts its 7.5% platform fee on every transaction processed on the Starter plan.
How do Teachable student caps affect transaction fees on lead-magnet courses?
The Starter plan has a hard cap of 100 students, and free students count toward this limit. If 100 free students enroll in a lead magnet, you are forced to upgrade to Builder ($89/month) even if your total course sales are zero.
Keep 100% of Your Course Revenue with Ruzuku
Sell unlimited courses and enroll unlimited students with 0% platform transaction fees. Ruzuku gives you native browser-based video meetings (no Zoom account required), lesson-level discussions, and complete pricing sovereignty.