Teachable Revenue Calculator
Calculate net course revenue on Teachable after plan fees, transaction fees, and taxes. Enter values for instant results with step-by-step formulas.
Calculator
Adjust values & calculateFee Breakdown
Plan Comparison
Formula
Gross revenue is course price times enrollments. Refund amount is deducted first. Transaction fees are a percentage based on your Teachable plan (0% to 10%). Payment processing is 2.9% plus $0.30 per transaction. Monthly plan subscription is a fixed cost. Tax is calculated on the remaining net amount.
Last reviewed: December 2025
Worked Examples
Example 1: Basic Plan Course Creator
Example 2: Pro Plan High-Volume Creator
Background & Theory
The Teachable Revenue Calculator applies the following established principles and formulas. Freelance rate calculation begins with an annual income target and works backward through the realities of independent work. The standard formula divides the target gross income by the product of billable weeks and billable hours per week. A freelancer who targets $80,000 annually, works 48 weeks, and bills 25 hours per week arrives at a minimum hourly rate of approximately $66.67 before accounting for expenses or tax. Because freelancers rarely bill every available hour, realistic utilisation rates of 60 to 70 percent are built into professional rate-setting. Project profitability equals revenue minus all direct costs (subcontractors, software, materials) minus an allocated share of overhead (internet, insurance, equipment depreciation, professional memberships). Overhead allocation typically uses a percentage of revenue or a per-hour rate derived from total annual overhead divided by annual billable hours. A project that appears profitable on its quoted price can turn unprofitable once overhead and revision time are correctly accounted for. Self-employment tax in the United States totals 15.3 percent of net self-employment earnings: 12.4 percent for Social Security (up to the annual wage base) and 2.9 percent for Medicare without an upper limit. Employees split this burden with their employers, each paying 7.65 percent. Self-employed individuals pay the full 15.3 percent but may deduct half as a business expense on their income tax return. Quarterly estimated tax payments are required to avoid underpayment penalties. Royalty percentages are negotiated fractions of revenue paid to creators for the ongoing use of their work. Standard book royalties range from 8 to 15 percent of cover price for traditionally published authors, while self-publishing platforms like Amazon KDP pay 35 to 70 percent of list price depending on pricing and distribution choices. The effective hourly rate compares what a creator actually earns per hour against their quoted rate. If a $5,000 project quoted at $100 per hour consumed 70 hours of unbilled research, revision, and administration, the effective rate drops to approximately $71 per hour.
History
The history behind the Teachable Revenue Calculator traces back through the following developments. Organised skilled labour first took institutional form in the medieval guild system, which regulated training, wages, and quality standards for trades ranging from stonecutters and weavers to goldsmiths and surgeons. Guilds were geographically bounded and entry was tightly controlled through multi-year apprenticeships followed by journeyman periods. The industrial revolution progressively dismantled guild power as factory production concentrated workers under single employers and standardised machinery reduced the premium on individual craft skills, establishing the wage employment relationship as the dominant model of compensation through the 19th century. The Fair Labor Standards Act of 1938 in the United States codified minimum wage, overtime protections, and child labour restrictions, but explicitly applied only to employees covered by the act. Determining who qualifies as an employee versus an independent contractor has therefore carried enormous financial and legal consequences ever since, spawning decades of litigation over the economic reality test and the common law right-to-control standard used by different courts and agencies. Peter Drucker coined the term knowledge worker in his 1959 book "The Landmarks of Tomorrow," identifying a growing class of professionals whose primary output was ideas, analysis, and expertise rather than physical goods. This conceptual shift anticipated the economic conditions that would make independent professional work viable at scale once digital communications matured. The commercialisation of the internet in the 1990s enabled freelancers to find clients globally, exchange work files instantly, and receive payment electronically, dissolving the geographic constraints that had previously limited independent work to local markets. Platforms such as oDesk (founded 2003, later merged to become Upwork in 2014) and Fiverr (founded 2010) created structured marketplaces that substantially lowered the transaction costs of matching buyers and sellers of skilled labour. The COVID-19 pandemic of 2020 to 2021 normalised remote work across industries that had long resisted it, permanently expanding the freelance talent pool. California's AB5 legislation and its subsequent Proposition 22 exemption sparked a national conversation about gig worker classification and the balance between flexibility and labour protections.
Frequently Asked Questions
Sources & References
Formula
Net = (Gross - Refunds) - Transaction Fees - Processing Fees - Plan Cost - Tax
Gross revenue is course price times enrollments. Refund amount is deducted first. Transaction fees are a percentage based on your Teachable plan (0% to 10%). Payment processing is 2.9% plus $0.30 per transaction. Monthly plan subscription is a fixed cost. Tax is calculated on the remaining net amount.
Worked Examples
Example 1: Basic Plan Course Creator
Problem: You sell a $99 course on the Basic plan ($39/month) with 30 enrollments per month and a 5% refund rate.
Solution: Gross revenue: $99 x 30 = $2,970\nRefunds (5%): $2,970 x 0.05 = $148.50\nRevenue after refunds: $2,821.50\nTransaction fee (5%): $2,821.50 x 0.05 = $141.08\nProcessing fee: ($2,821.50 x 0.029) + ($0.30 x 28.5) = $81.82 + $8.55 = $90.37\nPlan cost: $39.00\nTotal fees: $141.08 + $90.37 + $39.00 = $270.45\nNet revenue: $2,821.50 - $270.45 = $2,551.05
Result: Net Monthly Revenue: $2,551.05 | Total Fees: $270.45 | Per Student: $85.04
Example 2: Pro Plan High-Volume Creator
Problem: You sell a $199 course on the Pro plan ($119/month) with 50 enrollments per month and a 3% refund rate.
Solution: Gross revenue: $199 x 50 = $9,950\nRefunds (3%): $9,950 x 0.03 = $298.50\nRevenue after refunds: $9,651.50\nTransaction fee (0%): $0\nProcessing fee: ($9,651.50 x 0.029) + ($0.30 x 48.5) = $279.89 + $14.55 = $294.44\nPlan cost: $119.00\nTotal fees: $0 + $294.44 + $119.00 = $413.44\nNet revenue: $9,651.50 - $413.44 = $9,238.06
Result: Net Monthly Revenue: $9,238.06 | Total Fees: $413.44 | Per Student: $184.76
Frequently Asked Questions
What are the different Teachable pricing plans and their fees?
Teachable offers four main pricing tiers with different fee structures designed for creators at various stages. The Free plan charges no monthly fee but takes a 10 percent transaction fee plus payment processing on every sale. The Basic plan at $39 per month reduces the transaction fee to 5 percent. The Pro plan at $119 per month eliminates transaction fees entirely, leaving only standard payment processing charges. The Business plan at $499 per month also has zero transaction fees and includes advanced features like custom user roles and group coaching. All plans include standard payment processing fees of approximately 2.9 percent plus $0.30 per transaction. Choosing the right plan depends on your monthly revenue volume.
At what revenue level should I upgrade my Teachable plan?
The optimal upgrade point depends on when the monthly subscription cost is offset by savings from lower transaction fees. Moving from the Free plan (10 percent fee) to Basic ($39/month, 5 percent fee) becomes worthwhile when monthly revenue exceeds approximately $780, since the 5 percent savings on $780 equals $39. Upgrading from Basic to Pro ($119/month, 0 percent transaction fee) makes financial sense when monthly revenue exceeds approximately $1,600, where the 5 percent fee savings on that amount covers the $80 price difference between plans. The Business plan upgrade from Pro is primarily justified by feature needs rather than fee savings, as both Pro and Business have zero transaction fees. Always calculate your specific break-even point before upgrading.
How do Teachable payment processing fees work?
Teachable processes payments through its integrated payment gateway, which charges standard processing fees of approximately 2.9 percent plus $0.30 per transaction for credit card payments. These processing fees apply on all plans including the Business plan and are separate from Teachable's own transaction fees. International cards may incur additional fees of 1 to 2 percent depending on the payment method and country of origin. PayPal payments processed through Teachable follow PayPal's standard fee schedule. The fixed $0.30 per-transaction fee has a proportionally larger impact on lower-priced courses, which is why many course creators recommend pricing courses at $49 or above to maintain healthy margins after all fees are deducted.
Should I offer payment plans on Teachable and how do they affect revenue?
Payment plans can significantly increase enrollment rates by lowering the upfront cost barrier, but they affect revenue in several important ways. Splitting a $299 course into three payments of $109 means more total transactions and therefore more fixed per-transaction fees of $0.30 each. Payment plans also increase the risk of payment failures and abandoned installments, with industry data suggesting 10 to 15 percent of payment plan students fail to complete all installments. However, the increased enrollment volume typically more than compensates for these losses. A common strategy is pricing payment plans at a premium, such as offering $299 one-time or 3 payments of $109 ($327 total), to offset the additional transaction costs and default risk while still presenting an attractive monthly amount.
How do course bundles and upsells impact revenue on Teachable?
Course bundles and upsells are powerful revenue multipliers on Teachable that can dramatically increase per-student revenue. Bundling multiple courses at a discounted total price, such as offering three $99 courses for $249, increases average order value while providing students with perceived savings. Teachable's native upsell features allow you to present one-click offers after a purchase, with conversion rates typically ranging from 5 to 15 percent depending on offer relevance and pricing. Order bump additions at checkout convert even higher. The key insight is that upselling to existing customers costs nothing in additional customer acquisition, making the marginal revenue highly profitable. Successful course creators report that bundles and upsells can increase total revenue by 30 to 50 percent above single-course sales alone.
How does Teachable compare to other course platforms for revenue?
Teachable competes primarily with Thinkific, Kajabi, and Podia in the course platform market. Thinkific offers a free plan with zero transaction fees and paid plans starting at $49 per month, potentially providing better value at moderate revenue levels. Kajabi charges $149 to $399 per month with no transaction fees and includes marketing tools, making it more expensive but more comprehensive. Podia charges $39 to $89 per month with zero transaction fees on all plans. When comparing total costs, factor in not just fees but also the marketing features, website capabilities, and student experience each platform provides. For pure revenue maximization, platforms with zero transaction fees become more favorable as sales volume increases, but Teachable's robust course delivery features and student management tools provide significant operational value.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy