How to Calculate Profit in POS Business in Nigeria 2023

POS business, or point-of-sale business, is a business that provides financial services to customers at a physical location. POS businesses typically offer services such as cash withdrawals, deposits, transfers, airtime top-ups, and bill payments. They may also offer other services, such as insurance, micro-loans, and travel bookings.

How to Calculate Gross Profit

start a POS machine business
start a POS machine business

To calculate gross profit in a POS business, you need to know two things:

  • Total transaction fees earned
  • Other income (e.g., commissions from bill payments)

Once you have this information, you can simply subtract your other income from your total transaction fees to get your gross profit.

Calculate Transaction Fees

To calculate transaction fees, you need to know the following:

  • The number of transactions you processed in a given period
  • The average transaction fee charged

Once you have this information, you can simply multiply the number of transactions by the average transaction fee to get your total transaction fees.

Calculate Other Income

Other income from your POS business may include commissions from bill payments, commissions from insurance sales, and interest income from micro-loans.

How to Calculate Net Profit

To calculate net profit in a POS business, you need to subtract all of your expenses from your gross profit.

For both new and existing agents, the first thing to know is that the pos you are making use of charges you on every transaction carried out with the machine. The charges for both withdrawal and deposit are different and for withdrawal, the charges are based on a percentage which is mostly 0.5% and cap at 100 Naira for 20k and above while the deposit is mostly 20 Naira for any amount.

Let’s say a customer is to make a 5000 Naira withdrawal and your charge is 100 naira, it means you have to remove 0.5% of 5000 minus 100 Naira which is 75 naira as your profit, and for the deposit, if a customer is to make 20,000 naira deposit and you charge 200 Naira, the service charge is 20 Naira while your profit is 180.

So for better understanding, you have to draft a table that will contain different columns that include S/N, Amont, Charges, Deposit, Withdrawal, and Total.

S/N Withdrawal Deposit Charges Service Charge Profit
1 10000 0 200 50 150
2 0 5000 100 20 80

Calculate Expenses

Expenses in a POS business may include:

  • Rent
  • Utilities
  • Salaries
  • Communication expenses
  • POS machine rental fees
  • Bank charges
  • Other miscellaneous expenses

Tips for Increasing Profits in Your POS Business

Here are some tips for increasing profits in your POS business:

  • Offer more services. The more services you offer, the more attractive your business will be to customers. Consider offering additional services such as insurance, micro-loans, and travel bookings.
  • Target the right customers. Where is your ideal customer located? What are their needs? Once you know who your ideal customer is, you can tailor your marketing and service offerings to meet their needs.
  • Set competitive prices. You need to set prices that are competitive enough to attract customers, but high enough to generate a profit.
  • Market your business. Let people know about your business and the services you offer. You can market your business through a variety of channels, such as online advertising, social media, and word-of-mouth.


Calculating profit in a POS business is relatively straightforward. However, it is important to keep track of all of your income and expenses accurately. This will help you to identify areas where you can save money and increase profits.

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Alamu Tosin

Your how-to education blogger, offering practical strategies, expert advice, and educational resources to help students thrive academically and unlock their full potential

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