How to Calculate Your Net Earnings on WaContacts: A Simple Nigerian Seller Guide
Learn step‑by‑step how WaContacts fees, Paystack charges and VAT affect your profit. Use real examples to price your products right and keep more money in your pocket.
Why Knowing the Numbers Matters
When you sell on Instagram or WhatsApp, the price you display often looks higher than the amount that finally lands in your bank. The difference isn’t a mystery – it’s the sum of platform fees, gateway charges and tax. Understanding each component lets you set realistic prices, avoid surprise shortfalls and stay profitable.
Breakdown of the Costs on WaContacts
- WaContacts platform fee: 0.5% of the order value.
- Paystack card fee (Nigerian cards): 1.5% of the order plus a ₦100 flat fee.
- Flat fee is waived for orders of ₦2,500 or less.
- The whole fee is capped at ₦2,000.
- Nigerian VAT: 7.5% applied only to the Paystack fee (not to the order total).
Step‑by‑Step Calculation
Follow these three steps for any order amount:
- Calculate the Paystack base fee (1.5% of the order). Add ₦100 unless the order is ≤ ₦2,500.
- Apply the 7.5% VAT to the Paystack fee from step 1.
- Subtract the Paystack fee + VAT and the WaContacts 0.5% fee from the order total.
Worked Example from WaContacts
For a ₦10,000 order paid with a Nigerian card, Paystack’s fee is calculated as follows:
- 1.5% of ₦10,000 = ₦150
- + ₦100 flat fee = ₦250
- VAT 7.5% of ₦250 = ₦18.75
- Total Paystack charge = ₦268.75
- WaContacts fee = 0.5% of ₦10,000 = ₦50
- Amount that reaches the seller = ₦10,000 – ₦268.75 – ₦50 = ₦9,731.25
This is the only official worked example you may quote.
Additional Real‑World Scenarios
Scenario 1: Small order of ₦2,000
- Paystack base fee = 1.5% of ₦2,000 = ₦30 (flat ₦100 waived)
- VAT = 7.5% of ₦30 = ₦2.25
- Total Paystack charge = ₦32.25
- WaContacts fee = 0.5% of ₦2,000 = ₦10
- Net to seller = ₦2,000 – ₦32.25 – ₦10 = ₦1,957.75
Scenario 2: Mid‑size order of ₦3,000
- Paystack base fee = 1.5% of ₦3,000 = ₦45 + ₦100 = ₦145
- VAT = 7.5% of ₦145 = ₦10.88
- Total Paystack charge = ₦155.88
- WaContacts fee = 0.5% of ₦3,000 = ₦15
- Net to seller = ₦3,000 – ₦155.88 – ₦15 = ₦2,829.12
Scenario 3: Large order of ₦15,000
- Paystack base fee = 1.5% of ₦15,000 = ₦225 + ₦100 = ₦325
- VAT = 7.5% of ₦325 = ₦24.38
- Total Paystack charge = ₦349.38
- WaContacts fee = 0.5% of ₦15,000 = ₦75
- Net to seller = ₦15,000 – ₦349.38 – ₦75 = ₦14,575.62
Tips to Keep More Money in Your Pocket
- Price with fees in mind: Add a small buffer (e.g., 2‑3%) to cover the combined Paystack + VAT + WaContacts cost.
- Encourage larger orders: Since the ₦100 flat fee disappears for orders ≤ ₦2,500, pushing customers to buy a little more can actually reduce the fee‑to‑sale ratio.
- Use buyer protection wisely: Offering escrow doesn’t add an extra charge, but it can increase buyer confidence and reduce cancellations.
- Monitor your payout schedule: Card payments without buyer protection are settled directly by Paystack to your bank, while escrow‑protected funds release after the 24‑hour approval window.
Where to Start
If you haven’t set up a WaContacts store yet, you can compare plans and choose the right one for your budget. When you’re ready, create your account and start building your first landing page. Want to see how the builder works before signing up? try the free page builder and experiment with product cards, pricing tables and the WhatsApp button.
Bottom Line
Knowing exactly how much you keep after Paystack, VAT and WaContacts fees transforms guessing into confident pricing. Use the simple steps above for every new product, and you’ll avoid surprise shortfalls, protect your margins and grow your online business with peace of mind.
