NEPSE Profit And Loss Calculation Guide on How To Calculate Profit After Trading
Learn how to calculate your actual share trading profit and loss in Nepal after broker commission, SEBON fees, DP charges and capital gains tax. Understand the formulas, examples and common mistakes before calculating your NEPSE returns.
Calculate NEPSE Profit and Loss →Investing in the Nepal Stock Exchange (NEPSE) can be exciting, but knowing whether you have made a profit or loss is not as simple as subtracting your purchase price from your selling price.
When you buy and sell shares in Nepal, several costs may apply, including broker commission, SEBON transaction fees, Depository Participant (DP) charges and capital gains tax. These costs can reduce your actual return.
This guide explains how to calculate NEPSE profit and loss step by step, with simple examples in Nepalese Rupees (NPR).
Quick Answer
Net Profit or Loss = Net Sale Proceeds − Total Purchase Cost
Your purchase cost includes the share purchase amount and applicable buying charges. Your net sale proceeds include the selling amount after applicable fees and taxes.
For a quick estimate, use our NEPSE Calculator Nepal.
What Is NEPSE Profit and Loss?
NEPSE profit and loss refers to the difference between the money you receive from selling shares and the total cost of acquiring those shares.
Profit
You make a profit when your net selling proceeds are greater than your total purchase cost.
Loss
You make a loss when your net selling proceeds are lower than your total purchase cost.
Remember that a share price increase does not automatically mean you have made a profit. You need to account for transaction expenses and applicable taxes.
NEPSE Profit and Loss Formula
The basic formula for calculating your share trading profit or loss is:
= Net Sale Proceeds − Total Purchase Cost
For a more detailed calculation:
= Share Purchase Amount + Buying Charges
Net Sale Proceeds
= Share Selling Amount − Selling Charges − Applicable Capital Gains Tax
Net Profit / Loss
= Net Sale Proceeds − Total Purchase Cost
Buying and selling charges may vary according to transaction value, broker and the applicable regulations.
Charges You Should Include in NEPSE Calculations
Before calculating your final profit, understand the main charges that may apply to secondary-market share transactions.
1. Broker Commission
Broker commission is charged when you buy or sell shares through a broker. For equity shares, commission is generally calculated according to the transaction amount and applicable commission slab.
| Transaction Amount | Broker Commission Rate |
|---|---|
| Up to NPR 2,500 | Flat NPR 10 |
| NPR 2,501 – 50,000 | 0.36% |
| NPR 50,001 – 5,00,000 | 0.33% |
| NPR 5,00,001 – 20,00,000 | 0.31% |
| NPR 20,00,001 – 1,00,00,000 | 0.27% |
| Above NPR 1,00,00,000 | 0.24% |
These are commonly published equity-share commission slabs. Confirm the applicable rate and minimum charge with your broker and current SEBON rules before using them for an actual transaction.
2. SEBON Transaction Fee
A SEBON regulatory transaction fee may apply to share purchases and sales. A commonly listed rate for equity-share transactions is 0.015% of the transaction amount.
SEBON fee = NPR 100,000 × 0.015%
SEBON fee = NPR 15
3. DP Charge
The Depository Participant (DP) charge is a flat charge associated with transferring shares through the depository system. A commonly listed charge is NPR 25 per company per transfer day.
DP charges may be applied differently depending on the transaction and broker statement. Check your actual contract note rather than assuming the charge is always applied on both sides.
4. Capital Gains Tax (CGT)
Capital gains tax may apply when you sell listed shares at a profit. The applicable rate can depend on your taxpayer status, share type, holding period and the law in force on the disposal date.
Do not automatically apply these rates to companies, non-residents, unlisted shares or other investment products. Their tax treatment may differ.
Step-by-Step Example: Calculate NEPSE Profit
Let’s understand the calculation using a simple example.
Example: Buying and Selling 100 Shares
- Number of shares: 100 kitta
- Purchase price: NPR 500 per share
- Selling price: NPR 600 per share
- Purchase value: NPR 50,000
- Selling value: NPR 60,000
Step 1: Calculate the Purchase Amount
= NPR 50,000
Step 2: Calculate the Selling Amount
= NPR 60,000
Step 3: Calculate Gross Profit
= NPR 60,000 − NPR 50,000
= NPR 10,000
Your gross profit is NPR 10,000 before transaction expenses and taxes.
Step 4: Calculate Buying Charges
Assume the purchase transaction has the following estimated charges:
| Charge | Calculation | Amount |
|---|---|---|
| Broker commission | NPR 50,000 × 0.36% | NPR 180 |
| SEBON fee | NPR 50,000 × 0.015% | NPR 7.50 |
| DP charge | Assumed charge | NPR 25 |
| Total buying charges | NPR 212.50 |
In this example, we have assumed a DP charge on the buying side for illustration. Your actual purchase statement may differ.
= NPR 50,000 + NPR 212.50
= NPR 50,212.50
Step 5: Calculate Selling Charges
| Charge | Calculation | Amount |
|---|---|---|
| Broker commission | NPR 60,000 × 0.33% | NPR 198 |
| SEBON fee | NPR 60,000 × 0.015% | NPR 9 |
| DP charge | Assumed charge | NPR 25 |
| Total selling charges | NPR 232 |
For the NPR 60,000 transaction, the assumed broker commission is 0.33% based on the commonly published transaction slabs.
= NPR 60,000 − NPR 232
= NPR 59,768
Step 6: Calculate Profit Before Capital Gains Tax
= NPR 9,555.50
Your estimated profit before capital gains tax is NPR 9,555.50.
Step 7: Calculate Applicable Capital Gains Tax
For illustration only, assume a qualifying investor is subject to a 5% capital gains tax on the relevant gain.
= NPR 477.78 (approximately)
NPR 9,555.50 − NPR 477.78
≈ NPR 9,077.72
This is an educational estimate, not a broker settlement statement. The exact taxable gain and tax calculation may depend on the applicable legal cost basis and settlement rules.
How to Calculate NEPSE Loss
Calculating a loss follows the same process as calculating profit. If the net sale proceeds are lower than your total purchase cost, the difference is your loss.
Example: Selling Shares at a Lower Price
- Shares purchased: 100 kitta
- Purchase price: NPR 500 per share
- Selling price: NPR 450 per share
= NPR 50,000
Selling Amount = 100 × NPR 450
= NPR 45,000
Gross Loss = NPR 45,000 − NPR 50,000
= NPR 5,000 loss
After adding applicable buying and selling charges, your actual loss may be greater than NPR 5,000.
Capital gains tax is generally related to a taxable gain, not simply the gross sale value. Loss treatment and whether a loss can be offset against other gains should be checked separately under applicable tax rules.
How to Calculate NEPSE Profit Percentage
Profit percentage helps you understand how much you earned relative to your total investment.
For example, if your total investment is NPR 50,000 and your net profit is NPR 5,000:
= 10% return
Use your total purchase cost, including relevant acquisition charges, for a more accurate return calculation.
What Is the Break-Even Share Price?
The break-even price is the selling price at which your sale proceeds cover the full purchase cost and transaction expenses.
If you sell below your break-even price, you may lose money after charges. If you sell above it, you may make a profit before any additional tax or costs not included in the calculation.
Net sale proceeds after charges = Total purchase cost
For a more practical estimate, use the NEPSE Calculator Nepal and enter your actual purchase details and charges.
How to Use a NEPSE Profit Calculator
A NEPSE profit calculator can simplify calculations by combining share prices, quantity, transaction charges and tax assumptions.
- Open the NEPSE Calculator Nepal.
- Enter the number of shares or kitta.
- Enter your purchase price per share.
- Enter your selling price per share.
- Check the broker commission and transaction fee assumptions.
- Enter or select applicable DP charges and tax settings, if available.
- Review the estimated profit or loss.
- Compare the estimate with your broker’s contract note.
Calculate Your NEPSE Profit Online
Use our online tool to estimate share trading profit and loss without manually calculating every amount.
Open NEPSE Calculator →Common Mistakes When Calculating NEPSE Profit
- Calculating profit only by subtracting the purchase price from the selling price.
- Ignoring broker commission on buying or selling.
- Forgetting SEBON transaction fees.
- Assuming DP charges are identical in every transaction.
- Using an outdated capital gains tax rate.
- Applying a tax rate without checking taxpayer eligibility and holding period.
- Confusing gross profit with net profit.
- Ignoring the total purchase cost when calculating return percentage.
- Assuming a calculator estimate will exactly match the broker settlement statement.
Tips for More Accurate NEPSE Calculations
Keep Transaction Records
Save purchase bills, sale statements and broker contract notes for every transaction.
Check Current Charges
Review broker commission, SEBON fees and DP charges before calculating.
Review Your Cost Basis
Multiple purchases, bonus shares and right shares may affect your acquisition cost.
Verify Tax Rules
Use the rate applicable to your transaction date and investor category.
Frequently Asked Questions
1. How do I calculate NEPSE profit and loss?
Subtract your total purchase cost, including applicable charges, from your net sale proceeds after selling charges and applicable taxes.
2. What is the formula for NEPSE share profit?
Net Profit = Net Sale Proceeds − Total Purchase Cost.
3. How is NEPSE profit percentage calculated?
Profit percentage = (Net Profit ÷ Total Purchase Cost) × 100.
4. What is broker commission in NEPSE?
Broker commission is a transaction charge calculated according to the applicable equity-share commission slab and minimum fee. Check the current schedule with your broker.
5. Is broker commission charged on both buying and selling?
Broker commission generally applies to both purchase and sale transactions. Check each transaction’s contract note for the actual charge.
6. What is the SEBON fee for share trading?
A commonly listed equity-share transaction fee is 0.015% of the transaction value. Verify the current rate before trading.
7. What is the DP charge in NEPSE?
DP charge is a depository-related fee, commonly listed as NPR 25 per company per transfer day. Your broker statement will show the actual charge applied.
8. What is capital gains tax on NEPSE shares?
Capital gains tax is a tax on qualifying gains from share disposal. The rate depends on the applicable tax rules, holding period and investor status.
9. How do I calculate NEPSE loss?
Subtract your total purchase cost from your net sale proceeds. If the result is negative, it represents a loss.
10. What is the NEPSE break-even price?
The break-even price is the selling price at which your net sale proceeds equal your total purchase cost after relevant charges.
11. Can I calculate NEPSE profit online?
Yes. You can use the NEPSE Calculator Nepal to estimate profit and loss based on your trade inputs.
12. Does NEPSE profit calculation include tax automatically?
It depends on the calculator. Check whether it includes capital gains tax and whether its tax settings match the rules applicable to your transaction.
13. Is the calculator result exactly the same as my broker statement?
Not necessarily. Your broker may use different transaction details, applicable charges, cost-basis records or tax treatment. The broker’s contract note and settlement records should be used to reconcile the estimate.
14. Can I calculate profit on IPO shares?
Yes, but IPO shares may have a different acquisition cost and transaction history. Use the correct acquisition basis and applicable tax rules rather than assuming every share was purchased in the secondary market.
15. Is NEPSE profit calculation financial advice?
No. This guide explains arithmetic and estimated transaction costs. It does not recommend buying or selling any particular share.
Conclusion
Calculating NEPSE profit and loss accurately requires more than comparing the purchase and selling prices. You should include the total purchase cost, broker commission, SEBON transaction fees, applicable DP charges and capital gains tax.
By understanding these costs, you can estimate your actual returns more accurately and avoid common calculation mistakes.
For a quick calculation, visit our NEPSE Calculator Nepal and compare your results with your actual transaction records.
Official Website Of NEPSE is https://nepalstock.com/.