Am I wrong for breaking up with my (Mexican) boyfriend over saying a slur?

Today, I (21 F African American), am planning to break up with my boyfriend (25 Mexican) over saying the n-word on a FaceTime call a few days ago.

I was watching him play a game on stream and about 20 minutes into our call, he just dropped the n-word out of nowhere. It wasn't malicious, and he didn't use it towards me at all, but as an expletive. I kind of went silent for a moment because I didn't know if I had heard him correctly, and I could tell he panicked and began to explain himself, saying that he uses it with his friends and that a lot of Mexicans tend to use the n-word. (I used to go to an international high school and had a few Hispanic friends, so I knew what he was getting at.) Regardless, I told him anyone who is not black should absolutely not be using that word, and he just made excuses. I told him I was going to bed and texted him that I was extremely disappointed that he would ever think about using that word at all, and he apologized to me.

Over the weekend, I had talked to a few friends about it as I was anxious thinking about it and came to the conclusion that I I would be giving up so much self-respect as a black person if I didn't set this boundary and break up/take some time to re-evaluate what I'm looking for in our relationship and what I'm willing to put up with.

He's not a bad person by any means, I think he's unfortunately ignorant, doesn't understand the depth of what he said (not excusing it by ANY means though.) I know he loves me so much and he's always happily willing to talk about any problems or concerns I have in our relationship, but I feel as if I have to do this for myself. Can I hear your opinions on the situation? I'm so conflicted.