About the Share Calculator
It is a very useful tool for Nepalese stock investors. It has much interesting and rich features as compared to other share calculator options available in the market.
What does it do?
- This tool generates the exact broker bills for both buy and sell transactions.
- Share Calculator calculates weighted average cost of capital (WACC) with option to include or exclude cost of fund (opportunity cost or interest) of your investment.
- It calculates dynamically the remarks for WACC, which is needed while updating ‘My Purchase source’ in Mero Share.
- It calculates the actual holding days to be updated in ‘My Holdings’ under ‘My Purchase Source’ tab in Mero Share.
How to use Share Calculator on Buy Transactions?
You may follow the following instructions while using this calculator:
For buy transactions:
- Select the transaction type as ‘Buy’ from the selection box.
- Check ‘Include Interest in WACC’ if you want to include cost of fund of your investment, and fill up your applicable interest rate in the input box. If you check the checkbox but don’t supply interest rate, Share Calculator will calculate interest at the default interest rate of 10% p.a.
- Supply buy quantity and price in the corresponding input fields. But the buy date is optional. If you don’t supply buy date, the share calculator will use current date as the default buy date.
- When you place order in NEPSE TMS, there is high changes that your order will break down into smaller units. In such a case, you should click on ‘More buy’ button to get additional input fields for your transactions. This is recommended if you want to get the accurate broker bill from this Share Calculator.
- Enter share transactions as per the broker’s sell or buy transactions statements to get the accurate results. In addition, you can enter transactions as per the NEPSE TMS’s trade management records – daily trade book or historic trade book.
- Finally, click on ‘Calculate’ button to get the results.
How to Read and Use Buy Transaction Results?
- If you enter single buy transaction, then the calculation results contains only one results row. On the other hand, if you have entered multiple transactions, the results also contain grand total row at the bottom.
- If you have checked the ‘Include Interest in WACC’ checkbox, then the results row also contains the calculated interest amount. The interest rate calculation is based on the holding days of your stock up to current date (today). Here, the holding days of stock is the day counts from buy date of stock to current date. It calculates interest either on your interest rate or on default rate of 10% p.a.
- The WACC column of results contain WACC for the transactions taken place in a single day. The WACC figure corresponding to the buy quantity is what you need to update the respective WACC fields in Mero Share. Note that if there are multiple transactions on a single day, the WACC (and also WACC remarks) will remain same for all transactions happening on the same day.
- If you have entered multiple transactions with different dates, you will get the weighted average WACC for transactions at different dates. Note that weighted average WACC for different buy dates at the bottom of tabular results is the basis for calculation of capital gain tax in the sell transactions.
- Click on WACC figure to get the WACC remarks copied, which you need to paste on the WACC remarks fields in Mero Share.
- If you opted for including interest in WACC, you find holding days of your stock as days in the copied text.
How to Use Share Calculator on Sell Transactions?
For your sell transactions, follow the following instructions to get the desired outcomes:
- Select transaction type as ‘Sell’ from select box. Upon selection the design of forms changes to upper and lower parts. Upper part of the form is for buy transactions and lower part of the form is for sell transactions.
- Check on ‘Include Interest in WACC’ option if you want to include cost of fund in the WACC calculation. After that provide your applicable interest rate in the resulting input box. If you check checkbox but don’t fill up interest rate, then Share Calculator will use default interest of 10% p.a. to calculate WACC.
- Supply the buy related information in the upper part of the form. Instructions given above for buy transactions equally hold true for filling up the buy information here as well.
- Select the investor type from the selection box to suit your needs. This selection is needed for the purpose of tax treatment on capital gains.
- Fill up the sell quantity and price in the input fields and also fill up the sell date of your stock. Note that sell date is optional. If you want to use the current date as the sell date for your stock, you can leave it blank.
- Like the buy transactions, you can add more forms for sell transactions by clicking on ‘More sell’ link.
- After filling information and selecting desired options, you can click on the ‘Calculate’ button to get the results.
How to Read the Sell Transaction Results?
Use the following instructions to read the sell transaction results:
- If you have entered a single sell transaction, the results will content only a single results row. In opposite, results contain summary row at the bottom if you have entered the more than one sell transactions.
- Last column of results contain net profit of the sell transactions. Note that negative figures refer to the loss from the sell transactions.
- Bottom of the tabular results displays the WACC and holding days of stock. Calculation of WACC is based on buy transactions, and holding days on buy and sell dates of stock.
- Calculation of capital gain tax uses both the WACC and holding days of stock. However, it uses holding days only in case of individual investor type. In addition, the calculation of net profit also uses the WACC of stock.
If you want to know how stock price adjustment takes place after corporate actions such as dividends and right offerings, you may read Stock Price Adjustment after Dividend and Right Offerings.