The short answer
Builder wins on fee math above about $533 in monthly gross.
On annual billing, Starter is modeled at $29 per month plus a 7.5% Teachable transaction fee. Builder is $69 per month with no Teachable transaction fee. The $40 subscription gap is erased when 7.5% of monthly sales reaches $40.
Plan comparison
Teachable Starter vs Builder at a glance
| Plan | Monthly billing | Annual-plan equivalent | Teachable transaction fee | Fee-math fit |
|---|---|---|---|---|
| Starter | $39/month | $29/month | 7.5% | Pre-launch or below the break-even point |
| Builder | $89/month | $69/month | 0% | Regular sales or a need for higher plan allowances |
Annual prices require a yearly commitment. Payment processing, payment-bundle charges, tax treatment, refunds, disputes, and usage overages are separate. BackOffice applies only to legacy payment setups; it is not the current new-school model.
Interactive plan check
Starter vs Builder: use your own sales.
Compare subscription and platform charges only. Payment processing is excluded because it normally applies to both plans and does not move this upgrade break-even.
Lower modeled monthly costBuilderby $35.00 at 10 sales
Starter
$104.00$29.00 subscription · 7.5% of grossBuilder
$69.00$69.00 subscription · No modeled platform feePublished-fee break-even: $533.33 monthly gross revenue.
New-school payment routes
Teachable Payments replaced the old default gateway model.
Teachable's current setup guide gives a new school two routes. Teachable Payments is the managed, Stripe-powered option in 41 supported countries. Schools elsewhere are routed to a Custom Payment Gateway that connects the creator's own Stripe Standard account. “Available in all countries” does not make Stripe universally available—the creator still needs a valid Stripe account and bank route for the country or business entity.
| Decision | Teachable Payments | Custom Payment Gateway |
|---|---|---|
| Eligibility | 41 listed creator countries | Requires a connected Stripe Standard account |
| Payout | Bank payout through Stripe Express; daily, weekly, or monthly schedule | Managed in the creator's Stripe account |
| Tax | Teachable handles covered marketplace taxes | Creator remains responsible |
| Methods | Cards and wallets; more local methods depend on the selected bundle | Cards and Stripe Link; PayPal can be connected for eligible USD purchases |
| Affiliate payouts | Automation depends on payment bundle | Manual |
The Monthly Payment Gateway and BackOffice remain relevant to some legacy schools. Do not use those legacy fees or PayPal payout rules to model a new school.
Examples
What the two plans cost at three revenue levels
The table isolates the subscription and Teachable transaction fee so the plan decision stays visible. Payment processing would affect both columns and is not included here.
| Monthly gross | Starter cost | Builder cost | Lower-cost plan |
|---|---|---|---|
| $500 | $66.50 | $69 | Starter by $2.50 |
| $1,000 | $104 | $69 | Builder by $35 |
| $3,000 | $254 | $69 | Builder by $185 |
Costs outside the headline price
Processing and limits can matter more than the plan label
A platform transaction fee, payment-processing fee, and payout fee are separate deductions. Use the course platform fee definitions to label them consistently, then use the hidden-cost checklist to include usage limits and paid extras in the same budget. Removing one percentage does not remove the other costs.
Teachable documents separate payment-processing and payment-bundle charges. The exact amount depends on the seller's payment route, country, settlement currency, buyer method, one-time versus recurring billing, and optional bundle. Treat the calculator's editable processor fields as a planning input—not a universal Teachable rate.
Teachable usage rules now depend on the school’s policy date. Confirm product entitlements and operational features separately. A lower fee result is not a recommendation if the plan cannot support the school you expect to run.
Usage policy checked September 5, 2026
School creation date changes the usage-fee calculation.
Schools created from September 3, 2026 use the new policy. Earlier schools retain legacy rules until their first renewal on or after April 30, 2027, unless they switch sooner.
- Qualifying paid gateway enrollments do not incur student usage fees. Other enrollment methods, including imports and free access, share a 100-student allowance; each additional countable student costs $0.50 monthly.
- The billing-period peak matters. Counting starts when a school enters this policy; earlier students are excluded. Mixed paid/free access can still make a student countable.
- Video storage includes 1,000 GB; each additional TB costs $15 monthly.
Product allowance unresolved: the new policy says unlimited published products, while pricing cards still show tiered allowances. Confirm your actual school entitlement; we do not treat either as universally settled.
Official usage policy and legacy schedule · Current pricing cards
The fee calculator excludes these capacity overages. Its subscription break-even alone does not establish plan suitability.
Frequently asked
Teachable fee questions
What is the Starter-to-Builder break-even?
About $533.33 in monthly gross revenue on the annual plans. At that point, Starter's 7.5% fee is approximately $40—the same as Builder's higher subscription.
Is payment processing included in the 7.5%?
No. Teachable lists payment processing separately. Rates vary, so confirm the current charge for your gateway, payment method, customer location, and currency.
Should every seller upgrade after $533?
Not automatically. The break-even isolates platform fees. Billing commitment, plan limits, included tools, taxes, and operational needs still belong in the decision.
Is the Monthly Payment Gateway available to a new school?
No. Teachable's 2026 transition documentation says it is no longer available to new schools. Existing legacy schools may continue to use it, which is why older help articles still appear in search results.
Affiliate offer
Does Teachable fit your course business?
Check current plans, payment eligibility, and the tools your course needs before committing.
Affiliate disclosure: if you purchase through this link, CourseProfit Lab may earn a commission at no additional cost to you.
Affiliate link. Eligibility, pricing, attribution, and commission decisions are controlled by Teachable and PartnerStack.
Official sources
Confirm current pricing before buying
Plan prices, transaction fees, processing examples, and usage limits were checked against Teachable's official documentation on August 26, 2026.
The official source links above are direct and non-affiliate. Any separate Teachable partner offer is explicitly labeled.