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How to Calculate Online Course Revenue
Course income comes from two streams: live launches (open cart windows where you drive urgency) and evergreen sales (automated funnels running year-round). Understanding both is key to projecting total income.
Revenue per Launch = Course Price × Students per Launch
Annual Launch Revenue = Revenue per Launch × Launches per Year
Evergreen Annual Revenue = Monthly Sales × Course Price × 12
Platform Fees = (Gross Revenue × Fee %) + (Per-Sale Fee × Total Students)
Net Annual = Total Gross − Platform Fees − (Plan Cost × 12)
Implied Hourly = Net Annual ÷ Hours to Create
Annual Launch Revenue = Revenue per Launch × Launches per Year
Evergreen Annual Revenue = Monthly Sales × Course Price × 12
Platform Fees = (Gross Revenue × Fee %) + (Per-Sale Fee × Total Students)
Net Annual = Total Gross − Platform Fees − (Plan Cost × 12)
Implied Hourly = Net Annual ÷ Hours to Create
Choosing the Right Platform
- Teachable — 5% + $0.10/sale on basic plan. Good for beginners, upgrade to remove fees at $119/mo.
- Kajabi — No transaction fees but $149–$399/mo plans. Best for creators doing $5K+/mo who want an all-in-one.
- Gumroad — 10% flat. Simple setup, great for first-time creators testing the market.
- Udemy — You keep 37% of the sale price when Udemy promotes it (97% if you drive the sale). Huge built-in audience but race-to-bottom pricing.
- Self-Hosted (Podia, Thinkific free, WooCommerce) — 0% transaction fees. Best margin at scale.
What price should I charge for my online course?
Price based on the outcome you deliver, not hours of content. A $97 course is impulse-buy territory, $197–$497 is the sweet spot for most skill-based courses, and $997+ requires strong proof, community, or live coaching. Research shows $197 courses often outperform $97 courses in total revenue because you need fewer students and attract more serious buyers. Start at $197 and test upward.
How many students do I need to make $10,000 per launch?
At $197 after a 10% Gumroad fee (~$177 net), you need 57 students. At $497 (~$447 net), you need just 23 students. The real lever is your email list: a list of 2,000 engaged subscribers converting at 3% gives you 60 buyers. Focus on growing a targeted list over growing your price — then raise prices once you have social proof.