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.
Teachable Transaction Fees by Plan
Teachable charges a platform transaction fee only on its lowest-tier Starter plan. The Builder, Growth, and Enterprise plans have zero platform transaction fees. Here's the current fee structure as of 2026:
| Starter | Builder | Growth | Enterprise | |
|---|---|---|---|---|
| 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 | 1 | 5 | 25 | 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 only 1 published product. Want to add an upsell, a mini-course, or a coaching package? You need the Builder plan (5 products) or Growth (25 products).
- 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 — Zero transaction fees on all paid plans. Free plan available with limited features. (Teachable vs Thinkific)
- Kajabi — Zero transaction fees. Plans start at $89/month with more built-in marketing tools. (Teachable vs Kajabi)
- Podia — 5% fee on the Mover plan ($33/mo), 0% on Shaker ($75/mo). (Podia review)
The trend in the industry is clearly toward zero platform transaction fees with flat monthly pricing. Teachable and Podia are the notable holdouts that still charge percentage-based fees on lower-tier plans.
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
Does Teachable charge transaction fees on all plans?
No. Only the Starter plan ($39/mo) charges a 7.5% platform transaction fee. The Builder ($89/mo), Growth ($189/mo), and Enterprise plans all have zero platform transaction fees. However, standard payment processing fees (2.9% + $0.30 for domestic cards) apply on every plan.
What happened to Teachable's free plan and its 10% fee?
Teachable eliminated their free plan in 2025. The old free plan charged $1 + 10% per transaction. It is no longer available for new sign-ups. The lowest available plan is now the Starter at $39/month with a 7.5% transaction fee.
When should I upgrade from the Starter to the Builder plan?
When your monthly course revenue exceeds $667 (on monthly billing) or $533 (on annual billing). At those points, the 7.5% transaction fee costs more than the difference in subscription price between the two plans. You should also upgrade if you hit the 100-student cap or need more than 1 published product.
Are payment processing fees the same as transaction fees?
No — they're separate charges. Payment processing fees (2.9% + $0.30 per domestic card transaction through Teachable:pay) go to the payment processor and apply on every Teachable plan. The 7.5% transaction fee is Teachable's platform cut and only applies to the Starter plan. On the Starter plan, you pay both.
How much does Teachable cost per month in total?
Your total monthly cost depends on your plan and revenue. For example, at $1,000/month in course sales on the Starter plan, your total cost is roughly $144.50 (subscription + transaction fee + processing). On the Builder plan at the same revenue, it's about $119.50. See the detailed breakdowns above for calculations at $500, $1,000, $3,000, and $5,000 monthly revenue.