18/04/2026
FIX YOUR BUSINESS FINANCES: CALCULATE COST PER PUPIL AND START MAKING PROFIT
(Using School as our Case Study)
By Chris K.
Read an article by Mr Bello Abdulrahman, and it's been my desire to help our school owners and other businesses along this line. Let's learn and earn profits.
Most schools don’t struggle because they lack students.
They struggle because they lack financial clarity.
If your fees are based on what others charge—or what feels reasonable—you are not pricing your school. You are guessing.
There is a better, more structured way.
A SHIFT IN THINKING
Stop asking: “What should we charge?”
Start asking: “What does it actually cost us to educate one child?”
STEP 1: MAP YOUR FULL COST (PER TERM)
List everything it takes to run your school:
- Salaries: ₦1,800,000
- Rent: ₦300,000
- Fuel/Diesel: ₦250,000
- Electricity: ₦100,000
- Teaching Materials: ₦150,000
- Maintenance: ₦100,000
- Admin & Miscellaneous: ₦150,000
- Security: ₦50,000
- Marketing: ₦100,000
Total Expenses = ₦3,000,000 per term
STEP 2: SPREAD THE COST
Let’s assume:
Total Pupils = 120
Now divide:
₦3,000,000 ÷ 120 = ₦25,000
Your cost per pupil = ₦25,000
STEP 3: INTERPRET THE NUMBER
- ₦25,000 is your break-even point per child
- Any fee below this = loss
- Any fee above this = margin for growth
REALITY CHECK
If you are charging ₦20,000:
Loss per pupil = ₦5,000
₦5,000 × 120 pupils = ₦600,000 loss per term
This is why some schools are full—but financially under pressure.
STEP 4: BUILD PROFIT INTO YOUR STRUCTURE
Let’s say you add a 30% margin:
₦25,000 × 1.3 = ₦32,500
Recommended Fee Range ≈ ₦30,000 – ₦35,000
This allows room for:
- Growth
- Emergencies
- Reinvestment
STEP 5: UNDERSTAND THE POWER OF ENROLLMENT
If you increase pupils to 150:
₦3,000,000 ÷ 150 = ₦20,000 cost per pupil
Now your cost drops.
This means:
- Higher enrollment = better cost efficiency
- Empty seats = hidden financial leakage
KEY INSIGHTS
- Cost per pupil is your foundation
- Pricing without it is risk
- Growth reduces cost pressure
- Profit must be designed, not hoped for
FINAL THOUGHT
You are not just running a school, you are managing a financial system.
When your numbers are clear:
- Decisions become easier
- Growth becomes intentional
- Profit becomes predictable
Operate with structure.
Let your numbers lead.
Think like a CEO.
Kind regards,
Chris K. Oshundun
