Weighted Average Calculator

For Secondary Market Purchases

If you've bought shares of the same company at different times at different prices on NEPSE:

1. Enter the purchase date
2. Add number of shares purchased
3. Enter the price per share (NPR)
4. Click "Add Transaction" for multiple purchases
5. Click "Calculate WACC" to get weighted average

For IPO/Allotment Shares

For shares acquired through IPO or bonus shares:

1. Enter allotment date
2. Add number of shares allotted
3. Enter face value or allotment price
4. Add multiple allotments if applicable
5. Calculate to track your average cost

Why Calculate Weighted Average?

• • Better Buying Decisions: Compare current market price with your average cost
• • Pricing Strategies: Determine optimal selling prices
• • Tax Planning: Accurate cost basis for capital gains tax
• • Portfolio Analysis: Track investment performance
• • Risk Assessment: Understand your break-even points

Pro Tips for Nepalese Investors

• • Regular Tracking: Update after every purchase
• • Bonus Shares: Include bonus shares at face value (NPR 100)
• • Right Shares: Include rights shares at issue price
• • Tax Compliance: Maintain accurate records for IRD
• • Market Timing: Use WACC to identify good entry/exit points

What is Weighted Average Cost?

WACC is the average price you paid for all shares of a company in your portfolio, weighted by the number of shares purchased at each price point. It's crucial for Nepalese investors tracking their investment performance.

Why is WACC Important?

WACC helps you make informed decisions:

• • Compare current market price with your actual cost
• • Calculate accurate capital gains for tax purposes
• • Determine if your investment is profitable
• • Make better buy/sell decisions
• • Track portfolio performance over time

How WACC is Calculated

Formula:

WACC = Total Investment Cost ÷ Total Number of Shares

Each purchase is weighted by the number of shares bought at that price.

Tax Implications in Nepal

For capital gains tax calculation:

• • WACC becomes your cost basis
• • Capital gains = Selling Price - WACC
• • Tax applies only if gains > NPR 50,000 annually
• • Individual investors: 7.5% tax rate
• • Promoters: 10% tax rate