Financial Comparison: Online Teaching vs Overseas Teaching

If you’re choosing between teaching English online and taking a job overseas, your decision will hinge heavily on money: how much you earn, how much you spend, and what you can realistically save. The financial picture looks very different when you’re in a classroom abroad with a fixed salary versus working remotely with hourly online income.

This guide breaks down the real numbers, hidden costs, and savings potential so you can pick the TEFL route that makes financial sense for you.

Big-Picture Earnings: Salary vs Hourly Rates

The most obvious difference is how you’re paid: overseas roles usually offer a monthly salary, while online teaching is often hourly or per class.

Typical earnings teaching English abroad

Salaries abroad vary by region, qualifications, and institution type, but 2026 TEFL salary data shows ranges roughly like this for standard EFL roles (not high-end licensed positions).

Typical earnings teaching English online

Online teaching income is usually calculated per hour or per class, and it can scale as you specialise or build your own client base.

• Entry-level online teachers: about 12–15 USD per hour on many platforms.​

• More experienced or specialised teachers: often 20–25 USD per hour, sometimes more as freelancers.​

• In the US market, typical online English teacher pay averages around 25–26 USD per hour, or about 4,467 USD per month full-time at that rate.​

If you taught 25 hours per week at 19 USD per hour (a realistic mid-range rate with bonuses), you’d earn roughly 1,900 USD per month. Work more hours, or raise your rates, and that number climbs — but your income is still tied to bookings and your ability to attract students.

Start-Up Costs: Getting to “Income-Ready”

Your up-front costs are often lower online, but the pattern changes once you factor in flights and relocation.

Start-up costs for teaching abroad

Before that first payslip abroad, most teachers budget for:

• TEFL course (if not already completed).

• Flights to your destination (sometimes reimbursed later).

• Initial accommodation (deposit and first month’s rent if not provided).

• Visa fees and document legalisation.

• Basic setup costs in-country (SIM card, local transport, home essentials).

In return, many contracts in places like South Korea, Saudi Arabia, and the UAE offset these costs through included housing, bonuses, and tax-free packages.

Start-up costs for teaching online

To teach online, your essential investments are more tech than travel:

• TEFL qualification, ideally with a specialist Teaching English Online module.

• Laptop or desktop that can handle video calls.​

• Quality headset and webcam.

• Stable high-speed internet and possibly a backup connection.

• Optional: lighting, backdrop, and software subscriptions for scheduling, payments, or marketing.

You don’t need to move countries, but you should expect some unpaid time initially while you set up profiles, film intro videos, and attract your first students.

Monthly Costs: Living Abroad vs Living Anywhere

Your take-home pay is only half the story — what matters is what’s left after you pay rent, food, transport, and fun.

Typical cost of living teaching abroad

Here are example monthly budgets for a single teacher in popular TEFL destinations:​

Typical cost of living for online teachers

For online teachers, cost of living is self-chosen: you can base yourself in a high-cost city or a low-cost hub.

Common scenarios:

• Living at home in a Western country: higher rent and bills but familiar systems and possibly the option of a side job.

• Digital nomad in low-cost countries: working for Western rates while spending in cheaper currencies can massively boost your savings rate.

• Remote life in mid-cost European cities: a balance between lifestyle and cost, especially if you share accommodation.

Your biggest cost levers are rent and travel; being smart about those can make a 1,500–2,000 USD monthly income feel very different depending on where you are.

Savings Potential: Where Can You Keep the Most?

Once you understand earnings and expenses, you can look at what really matters: how much you can actually save each month.

Savings potential teaching abroad

Recent TEFL salary analyses show that, with careful budgeting, teachers can save meaningful amounts in many destinations.

• Vietnam: Low living costs mean potential savings of £7,200–£16,800 per year for motivated teachers.​

• South Korea: With free housing and decent salaries, annual savings often reach £11,280–£21,120.​

• China: Housing plus benefits can result in £7,690–£15,380 saved per year.​

• Gulf countries (Saudi Arabia, UAE): Top savings potential, with experienced teachers sometimes hitting £24,000–£40,000 per year thanks to tax-free salaries and full benefits.

A simplified monthly snapshot:

Savings potential teaching online

Online, your savings potential is more fluid: it depends on your hourly rate, weekly teaching hours, and where you live.

Example scenario:

• Rate: 20 USD/hour.​

• Hours: 25 per week.

• Monthly income: ~2,000 USD.

If you live in a low-cost country with monthly expenses around 900–1,000 USD, you could save roughly 1,000 USD/month. If you stay in a high-cost city with rent alone at 1,000+ USD, your savings might be much smaller unless you increase hours or rates.

Key levers that boost online savings:

• Raising your rate by specialising (exam prep, business English, niche markets).​

• Working with multiple platforms or building a private client base for better rates.

• Deliberately basing yourself in low- or mid-cost locations while keeping higher-paying clients.

Hidden Financial Factors: Tax, Benefits, and Stability

Beyond salary and rent, there are subtler financial differences to consider.

Tax and benefits teaching abroad

• Many TEFL-friendly destinations offer tax advantages, especially in the Middle East where salaries are often fully tax-free.

• Some countries have double-tax agreements with your home country, which can simplify your tax situation.

• Benefits like free or subsidised housing, flight reimbursement, health insurance, and end-of-contract bonuses add thousands to the total package.

However, you’re usually tied to one employer and one country for the duration of your contract, which limits flexibility but increases stability.

Tax and benefits teaching online

• As an online teacher, you’re often treated as self-employed or an independent contractor.

• You’re responsible for tracking income, paying your own taxes, and potentially setting aside money for health insurance and retirement.​

• You usually don’t get paid holidays, sick pay, or employer-sponsored benefits — so you need to budget for time off and unexpected gaps in bookings.

Financially, this means you might need a higher gross income online to match the security of a strong overseas package, unless you keep your expenses very low.

Example Financial Profiles: Abroad vs Online

To make the numbers more tangible, here are two simplified example profiles. Figures are illustrative but grounded in typical ranges.

Teacher in Vietnam

• Salary: 26 million VND (~1,000 USD / ~£800).​

• Monthly costs:

  • Rent (shared flat): £400.​

  • Food and groceries: £120.​

  • Transport and phone: £50.​

  • Entertainment and travel: £130.

Total expenses: ~£700.
Potential savings: ~£100 per month at a relaxed lifestyle, up to £300–£400 if you budget carefully and pick cheaper housing.

Online teacher in low-cost country

• Rate: 22 USD/hour.

• Hours: 25/week → ~2,200 USD/month.

• Monthly costs (low-cost base):

  • Rent (nice studio): 400 USD.

  • Food: 200 USD.​

  • Transport / utilities / SIM: 150 USD.

  • Entertainment / travel: 250 USD.

Total expenses: ~1,000 USD.
Potential savings: ~1,200 USD/month, assuming consistent bookings and no major tech disruptions.

These examples show how both paths can lead to strong savings, but through different levers: overseas via benefits and lower local costs, online via rate, hours, and location choices.

Summary Table: Financial Pros and Cons

Use this table as a quick reference when planning your TEFL finances.

There isn’t a universal “winner” — financially, the better option is the one that matches your situation, discipline, and goals.

Teaching abroad may be best if you:

• Want a predictable salary and package you can plan around.

• Prefer your employer to handle visa details and sometimes housing.

• Are targeting high-savings regions (Gulf, South Korea, etc.) to build a nest egg quickly.

Teaching online may be best if you:

• Are confident managing your own schedule, marketing, and finances.

• Want to base yourself in a low-cost destination while charging higher rates to international students.

• Value growth potential — raising rates, diversifying services, and building your own brand.

Many teachers now blend both: for example, doing one or two years abroad to save aggressively, then pivoting to online teaching with experience, testimonials, and savings behind them.

Next Steps with Premier TEFL

Whichever financial path you choose, a strong TEFL qualification is the foundation for better-paying, more sustainable roles.

With Premier TEFL you can:

• Earn an accredited TEFL certification that’s recognised for both overseas schools and online platforms.

• Add a specialist Teaching English Online course to increase your hourly earning potential.

• Explore supported internships and job routes in high-savings destinations to maximise your first year abroad.

When you understand the real numbers — income, costs, benefits, and savings — you’re in a much stronger position to choose whether online teaching, overseas teaching, or a mix of both will get you closer to your financial goals.

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