Name: Vayva
Author: Vayva

Question 1

How is profit margin calculated?

Accepted Answer

Profit margin = (Net Profit / Revenue) x 100. Net profit is revenue minus all costs (cost of goods, overhead, and payment processing fees). A 30% margin means you keep ₦30 from every ₦100 in sales.

Question 2

What overhead percentage should I use?

Accepted Answer

Typical overhead for Nigerian small businesses ranges from 5-20% of revenue. This includes rent, staff salaries, utilities, transport, and packaging. If you're just starting, use 10% as a baseline and adjust as you track actual expenses.

Question 3

Does this include Vayva's processing fee?

Accepted Answer

Yes. The calculator includes Vayva's flat 2% payment processing fee in the total cost calculation. This gives you an accurate picture of your real profit after all platform fees.

Profit Margin Calculator for Nigerian Merchants

Want to track profits automatically?

Profit Margin Calculator for Nigerian Merchants

Want to track profits automatically?