Thinkific vs Teachable: Which Fee Model Fits You?
Most “Thinkific vs Teachable” comparisons hand you a feature checklist and a verdict. But if you actually sell courses, one line item decides this for you long before the feature grid does: the transaction fee. Both platforms start at roughly the same monthly price, so the sticker price is almost a wash. What separates them is how much of each sale they quietly keep — and what you get in return for it.
Here’s the short version of my take: Teachable is the better pick if you sell internationally and want the platform to deal with tax and VAT so you never touch a compliance form. Thinkific is the better pick if you have real sales volume and want to keep 100% of your revenue with a predictable, fee-free base. Below is why, with the numbers that matter.
The one number that decides it: your transaction fee
At the time of writing, both platforms open at about the same price — Teachable’s entry Starter plan is around $39/month billed annually, and Thinkific’s Basic plan sits near $40/month after its August price adjustment. If you stopped there, you’d call it a tie.
You shouldn’t stop there. Teachable’s Starter plan adds a 7.5% transaction fee on every sale on top of normal payment-processing costs. Thinkific charges 0% platform transaction fees when you use its native Thinkific Payments. That gap is invisible on the pricing page and enormous on your bank statement once sales pick up.
There is one asterisk on Thinkific: if you insist on running payments through your own Stripe or PayPal instead of Thinkific Payments, Thinkific applies a penalty fee (roughly 5% on Basic, dropping on higher tiers). Use their native processor and it’s genuinely zero.
How each platform actually makes money
The fee model is the product decision in disguise. Teachable is willing to take a cut of each sale because, in exchange, it acts closer to a merchant of record — its payment layer automatically handles US sales tax, EU VAT, and GST, and its BackOffice add-on can issue affiliate 1099s and tax forms for you. Thinkific keeps its fee at zero and, in return, leaves tax compliance to you.
Neither approach is “better” in the abstract. One buys you convenience; the other buys you margin. Here’s the side-by-side:
| Factor | Thinkific (Basic) | Teachable (Starter) |
|---|---|---|
| Entry price (annual) | ~$40/month | ~$39/month |
| Platform transaction fee | 0% with Thinkific Payments | 7.5% per sale |
| Fee if using external gateway | ~5% penalty on Basic | Native gateway only at this tier |
| Tax / VAT handling | You handle it | Automatic (US tax, EU VAT, GST) |
| Courses & students | Unlimited from Basic | Limited on Starter, unlimited higher up |
| Best fit | Volume sellers who want margin | Global sellers who want zero admin |
Plans and fees change often; confirm the current numbers on each platform’s pricing page before you commit.
When Teachable is the right call
Choose Teachable if any of these describe you. You sell to buyers in multiple countries and the thought of registering for VAT or filing GST makes you want to close the laptop — Teachable’s automatic tax handling is worth a percentage of revenue to a lot of creators. You’re early, your sales are still low, and a 7.5% cut on a handful of monthly sales is a rounding error compared to the time you’d spend on compliance. Or you run affiliates and want the platform to issue their tax forms instead of doing it yourself.
Who should not pick Teachable: high-volume sellers on the entry plan. Once you’re moving real money, 7.5% of every sale dwarfs any monthly-fee savings, and you’ll want to climb to a higher tier (which lowers the fee) or move platforms. If you’re mapping out how a low-priced entry product feeds a bigger offer, that fee compounds fast — see our guide on building a tripwire offer for your online course.
When Thinkific is the right call
Choose Thinkific if you have — or expect — meaningful sales volume and you’d rather keep the margin than outsource tax admin. With 0% platform fees on Thinkific Payments, every dollar past your monthly subscription is yours. It also gives you unlimited courses and students from the Basic tier, so you’re not boxed in as your catalog grows.
Who should not pick Thinkific: solo creators who sell heavily across borders and have no appetite for tax paperwork. Thinkific’s zero fee is only a bargain if you’re comfortable being your own merchant of record. If VAT compliance is a dealbreaker, the “free” fee isn’t free — it’s just deferred into your admin time.
The break-even math you should run before deciding
Don’t argue about $39 vs $40. Run this instead. Take your expected monthly sales revenue and multiply Teachable’s 7.5% fee against it. If you sell $1,000/month, that fee is $75 — far more than the entire subscription. Compare that $75 to what your own time (or an accountant) would cost to handle tax compliance that Teachable would otherwise automate. Whichever number is bigger tells you which platform is genuinely cheaper for your situation.
For most creators past a few hundred dollars a month who sell primarily in one tax jurisdiction, Thinkific’s math wins. For creators selling globally, or still finding their first buyers, Teachable’s convenience usually justifies the cut. This is the same “who is it built for” logic we apply in our LearnWorlds vs Teachable comparison — the right tool depends on your stage, not on a spec sheet.
One last thing that outlives either choice: your audience. Neither platform grows your list for you, and the creators who win on either tool are the ones who own their audience. If that’s your gap, start with email list growth for course creators before you obsess over platform fees.
Frequently asked questions
Is Thinkific really 0% transaction fees?
Yes, on platform fees — but only when you use Thinkific Payments, its native processor. Standard payment-processor charges (from Stripe-style gateways) still apply, and using an external gateway instead triggers a Thinkific penalty fee.
Does Teachable handle VAT and sales tax for me?
Largely, yes. Teachable’s payment layer automatically calculates and handles US sales tax, EU VAT, and GST, which is a big reason its transaction fee is higher than Thinkific’s.
Which is cheaper, Thinkific or Teachable?
At the sticker level they’re nearly identical (~$39-$40/month). In practice Thinkific is cheaper for higher-volume sellers because of 0% platform fees, while Teachable can be cheaper in real terms for global sellers once you value the tax compliance it absorbs.
Can I switch platforms later?
You can, but migrating courses, students, and payment setups is real work. Pick based on where you expect to be in a year, not just where you are today.
