Online Course Income Calculator

If your annual revenue exceeds £90,000, you must register for VAT. Importantly, if you sell to EU/non-UK customers, UK VAT rules on digital services may require OSS (One Stop Shop) registration even below the threshold.

Teachable (3% + £0.30 per transaction on Starter plan), Kajabi (5% on Basic), and Thinkific (free/lower fees) offer creator-friendly rates. Udemy's 50% rev share is fair for organic sales but costly at scale. Selling directly via Stripe (~2.9%) maximises margin.

A £197 course with 20 sales/month generates ~£3,940/month gross. Top course creators on specialist topics (finance, coding, fitness) generate £10,000–£100,000+/month. Niche expertise and marketing skills determine success.

Deductible expenses: course platform fees, recording equipment, video editing software, hosting and website costs, marketing/ad spend, email marketing tools, freelancer costs (thumbnails, editing), courses/training you buy, and home office proportion.

Yes — Udemy instructor earnings are self-employment income in the UK. Udemy pays you the instructor revenue share (50–97% depending on coupon/organic). Declare all Udemy earnings on Self Assessment.

At profits above £40,000, running your course business through a limited company can reduce tax — paying corporation tax (25%) vs. income tax + NI (up to 47%). However, there are costs to operating a company.

Email list conversion: 1–3% per launch. Evergreen funnel conversion: 0.5–2%. Webinar conversions: 5–15%. Use these benchmarks with your audience size to project realistic monthly sales.

Refunds reduce your taxable income. Deduct total refunds from gross revenue before calculating profit. Keep records of all refunds issued as evidence for HMRC.

Initial creation involves significant upfront work. Once live, evergreen courses can generate passive income with minimal ongoing effort. However, updates, student support, and marketing remain ongoing obligations.

Bundle pricing typically increases revenue per customer while reducing per-unit price. Calculate bundle profitability by applying the same fee structure. Consider VAT implications if bundles mix taxable and exempt items.

If you use affiliates (e.g. via Teachable's affiliate programme), commissions paid (typically 30–50%) are deductible business expenses. Track affiliate payments carefully for tax records.

Higher prices (£197–£2,000) signal quality and reduce support burden per pound earned. Lower prices (£9–£97) work for high-volume, broad topics. Research competitor pricing and calculate minimum viable price based on expected conversion rates.