oneclickresult

Calculators

Essential tools to compute brokerage, taxes, exact returns, and intrinsic values for NEPSE.

Loading tools...

Understanding NEPSE Trading Costs and Investment Calculations

Brokerage Commission Structure

NEPSE broker commissions are tiered based on transaction value. For trades up to NPR 50,000, the commission is 0.40%. For trades between NPR 50,000 and NPR 5,00,000, it drops to 0.37%. For trades between NPR 5,00,000 and NPR 20,00,000, the rate is 0.34%. Larger trades above NPR 20,00,000 are charged 0.30%. In addition to broker commission, every transaction includes a SEBON regulatory fee of 0.015% and a DP (Depository Participant) charge of NPR 25.

Capital Gains Tax on NEPSE

When you sell shares at a profit on NEPSE, capital gains tax applies. The rate is 5% on gains from shares held less than 365 days. If your total capital gains exceed NPR 2,50,000 in a fiscal year, the rate increases to 7.5% on the excess amount. This tax is deducted at source (TDS) by your broker when you sell, so you receive the net amount directly. Your cost basis for tax purposes is the WACC (Weighted Average Cost) if you bought the same stock multiple times.

SIP (Systematic Investment Plan) in Nepal

Unlike India where mutual funds offer automated SIP, Nepal does not have a formal SIP mechanism for stock purchases. However, the concept still applies — investing a fixed amount regularly (monthly or quarterly) into selected stocks smooths out market volatility through rupee-cost averaging. When prices are low, your fixed amount buys more shares; when prices are high, it buys fewer. Over long periods, this disciplined approach typically outperforms trying to time the market, especially on volatile exchanges like NEPSE.

Graham Number and Intrinsic Value

The Graham Number, developed by Benjamin Graham (the father of value investing), estimates a stock's maximum fair price based on its EPS (Earnings Per Share) and book value per share. The formula is: √(22.5 × EPS × Book Value). For NEPSE stocks, this gives a conservative valuation benchmark. If the current market price is below the Graham Number, the stock may be undervalued. However, this metric works best for established, profitable companies — it is less useful for early-stage hydropower companies that are still building capacity.

Frequently Asked Questions

How much commission does a broker charge on NEPSE trades?▾
Broker commission on NEPSE is tiered: 0.40% for trades up to NPR 50,000, 0.37% for NPR 50,000 to 5 lakh, 0.34% for 5 lakh to 20 lakh, and 0.30% for trades above 20 lakh. Additionally, SEBON charges a 0.015% regulatory fee and your DP charges NPR 25 per transaction.
What is capital gains tax on stock market profits in Nepal?▾
Capital gains tax on NEPSE is 5% on profits from shares sold within 365 days of purchase. If your total gains in a fiscal year exceed NPR 2,50,000, the rate on the excess is 7.5%. The tax is automatically deducted by your broker when you sell (TDS), so you do not need to pay it separately.
How do I calculate my break-even selling price?▾
To break even, your selling price must cover: your purchase price plus buying-side broker commission plus selling-side broker commission plus SEBON fees on both sides plus DP charges plus capital gains tax on any gain. The brokerage calculator computes this automatically based on your buy price and quantity.
What is WACC and why does it matter for tax?▾
WACC (Weighted Average Cost of Capital) is your average purchase price when you have bought the same stock multiple times at different prices. It matters because capital gains tax is calculated based on the difference between your selling price and your WACC — not your most recent purchase price.
How does the SIP calculator work for NEPSE?▾
The SIP calculator projects returns from investing a fixed monthly amount over time using compound interest. While Nepal does not have automated SIP for stocks like India's mutual fund SIPs, you can manually invest a fixed amount each month. The calculator uses monthly compounding to show potential growth based on your expected annual return rate.
What is the Graham Number and when should I use it?▾
The Graham Number estimates a stock's intrinsic value using the formula: square root of (22.5 × EPS × Book Value per share). It gives a conservative maximum price for value investors. Use it for established, profitable NEPSE companies like commercial banks — it is less meaningful for companies with negative earnings or very high growth expectations.