Retirement & Goal Planner
Plan long-term retirement corpus needs, inflation escalation, and required monthly SIPs for major life goals.
SIP Calculator
Systematic Investment Plan (SIP) return estimator with monthly compounding.
Investment Parameters
Monthly SIPInvestment Journey at a Glance
Year-wise Growth Table
Detailed year-by-year progression of your investment and compound wealth.
| Year | Total Invested | Estimated Value | Estimated Profit |
|---|---|---|---|
| Year 1 | NPR 60,000 | NPR 64,047 | +NPR 4,047 |
| Year 2 | NPR 1,20,000 | NPR 1,36,216 | +NPR 16,216 |
| Year 3 | NPR 1,80,000 | NPR 2,17,538 | +NPR 37,538 |
| Year 4 | NPR 2,40,000 | NPR 3,09,174 | +NPR 69,174 |
| Year 5 | NPR 3,00,000 | NPR 4,12,432 | +NPR 1,12,432 |
| Year 6 | NPR 3,60,000 | NPR 5,28,785 | +NPR 1,68,785 |
| Year 7 | NPR 4,20,000 | NPR 6,59,895 | +NPR 2,39,895 |
| Year 8 | NPR 4,80,000 | NPR 8,07,633 | +NPR 3,27,633 |
| Year 9 | NPR 5,40,000 | NPR 9,74,108 | +NPR 4,34,108 |
| Year 10 Maturity | NPR 6,00,000 | NPR 11,61,695 | +NPR 5,61,695 |
Understanding SIP Compounding & Market Dynamics in Nepal
Essential principles for building long-term wealth through Systematic Investment Plans in open-ended mutual funds.
How the Formula Works
Calculated using the standard future value annuity formula:
M = P × [((1 + i)ⁿ - 1) / i] × (1 + i)
Where P is monthly deposit, i is monthly interest rate (annual return ÷ 12), and n is total months. Compounding produces an exponential curve where interest earns interest on itself over decades.
Nepal Regulatory Realities
- SEBON Regulation: Open-ended mutual funds are managed by licensed Asset Management Companies (NIBL Ace, Siddhartha, Sanima) under SEBON directives.
- Digital Mandate: Auto-debits occur via ConnectIPS or direct bank standing orders on salary day.
- Tax Advantage: Individual capital gains on mutual fund units are taxed at only 5% on redemption, vastly lower than progressive salary tax slabs.
Decision Guide & Common Errors
- Do Not Stop in Bear Markets: Stopping your SIP when NEPSE falls eliminates Rupee-Cost Averaging-the exact mechanism that buys cheap units and drives future outperformance.
- Not a Bank FD: A 12% projected return is an illustrative long-term historical equity reference, not a guaranteed contractual yield.
- Minimum Horizon: SIPs require at least 5 to 7 years to smooth short-term equity market volatility.
Loan Calculators
Reducing-balance loan installment, LTV health assessment, and amortization estimators for Home, Personal, and Vehicle loans in Nepal.
Home Loan Parameters
Long-term residential mortgageNepal Rastra Bank mandates that all licensed banks calculate home loans on a Reducing Balance basis. If an informal cooperative quotes you a "8.75% Flat Rate", you would pay NPR 72,10,692 more in total interest!
LTV is between 70% and 85%. Moderate equity buffer. Nepali commercial banks may require additional collateral or stringent debt-service-to-gross-income (DSTI) verification.
Home Loan Amortization Schedule
Month-by-month breakdown of principal payoff, interest, and remaining balance.
| Month | Opening Balance | EMI | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|---|
| 1 | NPR 1,00,00,000 | NPR 82,214 | NPR 9,298 | NPR 72,917 | NPR 99,90,702 |
| 2 | NPR 99,90,702 | NPR 82,214 | NPR 9,365 | NPR 72,849 | NPR 99,81,337 |
| 3 | NPR 99,81,337 | NPR 82,214 | NPR 9,434 | NPR 72,781 | NPR 99,71,903 |
| 4 | NPR 99,71,903 | NPR 82,214 | NPR 9,503 | NPR 72,712 | NPR 99,62,400 |
| 5 | NPR 99,62,400 | NPR 82,214 | NPR 9,572 | NPR 72,643 | NPR 99,52,829 |
| 6 | NPR 99,52,829 | NPR 82,214 | NPR 9,642 | NPR 72,573 | NPR 99,43,187 |
| 7 | NPR 99,43,187 | NPR 82,214 | NPR 9,712 | NPR 72,502 | NPR 99,33,475 |
| 8 | NPR 99,33,475 | NPR 82,214 | NPR 9,783 | NPR 72,432 | NPR 99,23,692 |
| 9 | NPR 99,23,692 | NPR 82,214 | NPR 9,854 | NPR 72,360 | NPR 99,13,838 |
| 10 | NPR 99,13,838 | NPR 82,214 | NPR 9,926 | NPR 72,288 | NPR 99,03,912 |
| 11 | NPR 99,03,912 | NPR 82,214 | NPR 9,998 | NPR 72,216 | NPR 98,93,914 |
| 12 | NPR 98,93,914 | NPR 82,214 | NPR 10,071 | NPR 72,143 | NPR 98,83,843 |
Personal Loan Parameters
Unsecured personal financingNepal commercial banks use Reducing Balance. Beware of lenders quoting "12% Flat Rate", where you would pay NPR 1,32,667 more in lifetime interest!
Quick Tenure Comparison: 5 Years vs 7 Years vs 10 Years
Compare how tenure affects monthly payments and lifetime interest. Longer loans offer lower monthly EMIs, but significantly inflate total interest paid.
Personal Loan Amortization Schedule
Month-by-month reducing balance breakdown.
| Month | Opening Balance | EMI | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|---|
| 1 | NPR 5,00,000 | NPR 11,122 | NPR 6,122 | NPR 5,000 | NPR 4,93,878 |
| 2 | NPR 4,93,878 | NPR 11,122 | NPR 6,183 | NPR 4,939 | NPR 4,87,694 |
| 3 | NPR 4,87,694 | NPR 11,122 | NPR 6,245 | NPR 4,877 | NPR 4,81,449 |
| 4 | NPR 4,81,449 | NPR 11,122 | NPR 6,308 | NPR 4,814 | NPR 4,75,141 |
| 5 | NPR 4,75,141 | NPR 11,122 | NPR 6,371 | NPR 4,751 | NPR 4,68,771 |
| 6 | NPR 4,68,771 | NPR 11,122 | NPR 6,435 | NPR 4,688 | NPR 4,62,336 |
| 7 | NPR 4,62,336 | NPR 11,122 | NPR 6,499 | NPR 4,623 | NPR 4,55,837 |
| 8 | NPR 4,55,837 | NPR 11,122 | NPR 6,564 | NPR 4,558 | NPR 4,49,273 |
| 9 | NPR 4,49,273 | NPR 11,122 | NPR 6,629 | NPR 4,493 | NPR 4,42,644 |
| 10 | NPR 4,42,644 | NPR 11,122 | NPR 6,696 | NPR 4,426 | NPR 4,35,948 |
| 11 | NPR 4,35,948 | NPR 11,122 | NPR 6,763 | NPR 4,359 | NPR 4,29,185 |
| 12 | NPR 4,29,185 | NPR 11,122 | NPR 6,830 | NPR 4,292 | NPR 4,22,355 |
Vehicle Loan Parameters
Two-Wheeler & Four-Wheeler Auto FinancingVehicle loans in Nepal banks are calculated on Reducing Balance. If a showroom or finance company quotes a "9% Flat Rate", you would pay NPR 10,02,663 more in interest!
Vehicle Loan Amortization Schedule
Month-by-month reducing balance breakdown.
| Month | Opening Balance | EMI | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|---|
| 1 | NPR 36,00,000 | NPR 57,921 | NPR 30,921 | NPR 27,000 | NPR 35,69,079 |
| 2 | NPR 35,69,079 | NPR 57,921 | NPR 31,153 | NPR 26,768 | NPR 35,37,927 |
| 3 | NPR 35,37,927 | NPR 57,921 | NPR 31,386 | NPR 26,534 | NPR 35,06,541 |
| 4 | NPR 35,06,541 | NPR 57,921 | NPR 31,622 | NPR 26,299 | NPR 34,74,919 |
| 5 | NPR 34,74,919 | NPR 57,921 | NPR 31,859 | NPR 26,062 | NPR 34,43,060 |
| 6 | NPR 34,43,060 | NPR 57,921 | NPR 32,098 | NPR 25,823 | NPR 34,10,962 |
| 7 | NPR 34,10,962 | NPR 57,921 | NPR 32,338 | NPR 25,582 | NPR 33,78,624 |
| 8 | NPR 33,78,624 | NPR 57,921 | NPR 32,581 | NPR 25,340 | NPR 33,46,043 |
| 9 | NPR 33,46,043 | NPR 57,921 | NPR 32,825 | NPR 25,095 | NPR 33,13,218 |
| 10 | NPR 33,13,218 | NPR 57,921 | NPR 33,072 | NPR 24,849 | NPR 32,80,146 |
| 11 | NPR 32,80,146 | NPR 57,921 | NPR 33,320 | NPR 24,601 | NPR 32,46,826 |
| 12 | NPR 32,46,826 | NPR 57,921 | NPR 33,569 | NPR 24,351 | NPR 32,13,257 |
Understanding Loans, EMI & Banking Directives in Nepal
Official Nepal Rastra Bank (NRB) guidelines, reducing balance mathematics, and strategies to save lakhs in interest.
The Reducing Balance Engine
Commercial banks compute interest strictly on the declining principal balance:
EMI = [P × r × (1 + r)ⁿ] / [(1 + r)ⁿ - 1]
Where P is principal, r is monthly interest, and n is months. In early years, up to 70% of your EMI goes toward interest. As principal reduces, interest drops and equity builds. Beware of informal cooperatives quoting "10% Flat Rate"-a 10% flat rate actually equates to an effective APR of over 18.5%!
NRB Directives & Borrowing Limits
- Base Rate + Premium: Interest rates equal the bank's published quarterly Base Rate plus a fixed premium spread (e.g. 8.0% Base + 2.5% Premium = 10.5%).
- DSTI 50% Rule: NRB limits your total monthly loan EMIs across all banks to a maximum of 50% of verified post-tax income.
- LTV Financing Caps: Banks finance up to 70% for first-time residential home buyers, 50% for Kathmandu real estate, and 80%-90% for Electric Vehicles (EVs).
Prepayment Power & Common Traps
- Zero Prepayment Penalty: Under NRB circulars, commercial banks cannot charge prepayment penalty fees on floating-rate individual home loans.
- The 1-Extra EMI Hack: Paying just 1 extra monthly EMI per year directly toward principal cuts a 20-year mortgage down by nearly 4.5 years and saves millions in interest.
- The Max-Tenure Trap: Choosing a 30-year tenure to lower monthly EMI can cause you to pay more than 160% of the original loan value in pure interest alone.
SWP Calculator
Systematic Withdrawal Plan (SWP) regular income and corpus longevity simulation.
Withdrawal Parameters
SWP SimulationYour corpus survives the full 15-year period, but draws down more than 50% of your initial capital.
Withdrawal Sensitivity Analysis
Small adjustments to your monthly withdrawal can dramatically alter how long your capital survives.
Year-wise Corpus Breakdown
Year-by-year simulation of opening capital, compounding growth, withdrawals, and closing balances.
| Year | Opening Corpus | Investment Growth | Withdrawal | Closing Corpus |
|---|---|---|---|---|
| Year 1 | NPR 20,00,000 | +NPR 1,98,115 | -NPR 2,40,000 | NPR 19,58,115 |
| Year 2 | NPR 19,58,115 | +NPR 1,93,729 | -NPR 2,40,000 | NPR 19,11,844 |
| Year 3 | NPR 19,11,844 | +NPR 1,88,884 | -NPR 2,40,000 | NPR 18,60,727 |
| Year 4 | NPR 18,60,727 | +NPR 1,83,531 | -NPR 2,40,000 | NPR 18,04,258 |
| Year 5 | NPR 18,04,258 | +NPR 1,77,618 | -NPR 2,40,000 | NPR 17,41,876 |
| Year 6 | NPR 17,41,876 | +NPR 1,71,086 | -NPR 2,40,000 | NPR 16,72,962 |
| Year 7 | NPR 16,72,962 | +NPR 1,63,870 | -NPR 2,40,000 | NPR 15,96,832 |
| Year 8 | NPR 15,96,832 | +NPR 1,55,898 | -NPR 2,40,000 | NPR 15,12,730 |
| Year 9 | NPR 15,12,730 | +NPR 1,47,091 | -NPR 2,40,000 | NPR 14,19,821 |
| Year 10 | NPR 14,19,821 | +NPR 1,37,362 | -NPR 2,40,000 | NPR 13,17,183 |
| Year 11 | NPR 13,17,183 | +NPR 1,26,615 | -NPR 2,40,000 | NPR 12,03,798 |
| Year 12 | NPR 12,03,798 | +NPR 1,14,742 | -NPR 2,40,000 | NPR 10,78,540 |
| Year 13 | NPR 10,78,540 | +NPR 1,01,626 | -NPR 2,40,000 | NPR 9,40,166 |
| Year 14 | NPR 9,40,166 | +NPR 87,136 | -NPR 2,40,000 | NPR 7,87,303 |
| Year 15 | NPR 7,87,303 | +NPR 71,130 | -NPR 2,40,000 | NPR 6,18,432 |
Understanding SWP Pensions & Capital Preservation in Nepal
How Systematic Withdrawal Plans create a predictable monthly retirement pension while minimizing tax drag.
The Drawdown Mathematics
Calculated month-by-month using iterative compounding:
Bₜ = Bₜ₋₁ × (1 + r/12) - W
Where Bₜ is the remaining balance, r is the annual growth rate, and W is the periodic cash withdrawal. As long as your withdrawal rate (W ÷ Total Corpus) stays below the net real return, your principal survives permanently.
Tax Efficiency vs Bank Fixed Deposit
- FD Interest Tax Drag: Commercial banks deduct 5% TDS upfront on 100% of the interest earned annually, eroding capital compound speed.
- Mutual Fund Capital Gains: Under an SWP, redemptions represent capital return plus capital gain. Only the net capital gain portion is taxed at 5% CGT, leaving unredeemed units compounding tax-free.
- ConnectIPS Direct Credit: Fund managers (AMCs) deposit monthly pension payouts directly to your commercial bank account on the 1st of every month.
Sequence of Returns Risk & The 3.5% Rule
- The Bear Market Trap: Withdrawing during an early NEPSE downturn forces selling more units at rock-bottom NAVs, causing permanent portfolio impairment.
- The 3-Year Cash Bucket: Maintain 2 to 3 years of living expenses in liquid fixed deposits or short-term debentures to fund cash flow during market corrections.
- Safe Withdrawal Rate: In Nepal's 6%-7% inflation environment, a conservative 3.0%-3.5% initial withdrawal rate provides bulletproof multi-decade sustainability.
Nepal Personal Income Tax Calculator (FY 2082/83)
Progressive slab-by-slab income tax and take-home pay estimator for resident individuals and couples.
Income Details
ProgressiveStatutory deductions reduce your net taxable income before slabs are computed.
Slab-by-Slab Tax Breakdown (FY 2082/83)
See exactly how much income falls into each tax bracket and the precise tax computed at each step.
| Income Slab | Tax Rate | Taxable in Slab | Tax Paid |
|---|---|---|---|
| First NPR 500,000 (0 - 5L) | 1% | NPR 5,00,000 | NPR 5,000 |
| Next NPR 200,000 (5L - 7L) | 10% | NPR 2,00,000 | NPR 20,000 |
| Next NPR 300,000 (7L - 10L) | 20% | NPR 3,00,000 | NPR 60,000 |
| Next NPR 1,000,000 (10L - 20L) | 30% | NPR 2,00,000 | NPR 60,000 |
| Next NPR 3,000,000 (20L - 50L) | 36% | NPR 0 | NPR 0 |
| Above NPR 5,000,000 (50L+) | 39% | NPR 0 | NPR 0 |
| Total Tax Liability | - | NPR 12,00,000 | NPR 1,45,000 |
Understanding Progressive Income Tax & Legal Deductions in Nepal
Inland Revenue Department (IRD) statutory provisions, slab mechanics, and strategies to legally reduce your tax burden.
How Progressive Slabs Work
Moving into a higher tax bracket never decreases your net take-home salary.
Each tax rate applies strictly to the incremental rupees inside that specific band. For an unmarried earner: the first NPR 5 Lakhs is taxed at 1% (or 0% with SSF), the next NPR 2 Lakhs at 10%, the next NPR 3 Lakhs at 20%, the next NPR 10 Lakhs at 30%, and income exceeding NPR 20 Lakhs at 36% (plus a 39% super-tax on earnings above NPR 50 Lakhs).
Legal Tax Deductions Checklist
- Section 63 Retirement Funds: Deduct up to one-third of total taxable salary or NPR 5,00,000 (whichever is lower, per Finance Act 2080+) by depositing into CIT, EPF, or SSF.
- SSF 1% Exemption: Employees enrolled in the Social Security Fund (SSF) are 100% exempt from the 1% Social Security Tax on their first income slab.
- Insurance Relief: Deduct up to NPR 40,000 for Life Insurance premiums and NPR 20,000 for Health Insurance premiums annually.
Common Mistakes & Compliance
- TDS ≠ Final Tax: TDS deducted by your employer or bank is an advance payment. You must reconcile your annual return (Form D-01) on the IRD portal.
- Unlinked PAN in Demat: Forgetting to link your PAN with your Demat broker account causes automatic maximum capital gains tax withholding without setoff rights.
- Document Retention: Section 81 of the Income Tax Act requires preserving all tax clearance certificates, invoices, and bank statements for at least 5 years.
NEPSE Share Calculator
Calculate share purchase costs, sell profits, Capital Gains Tax, WACC average price, and break-even targets.
Share Purchase Details
NEPSE SlabsSell Trade Parameters
Capital GainsPurchase Lots & Weighted Average Cost
Add all your purchase lots to determine your exact weighted-average buying cost (WACC).
| Lot # | Purchase Price (NPR) | Quantity (Kitta) | Gross Amount | Action |
|---|---|---|---|---|
| Lot #1 | NPR 45,000 | |||
| Lot #2 | NPR 55,000 |
Target Break-even Analysis
Fee RecoveryUnderstanding NEPSE Share Transaction Costs, WACC & Taxes
Official SEBON brokerage rates, CDSC fees, and capital gains tax mechanics for equity investors in Nepal.
SEBON Broker Commission Slabs
- Up to NPR 50,000: 0.40% (minimum fee NPR 10)
- NPR 50,001 to 5,00,000: 0.37%
- NPR 5,00,001 to 20,00,000: 0.34%
- NPR 20,00,001 to 1,00,00,000: 0.30%
- Above NPR 1 Crore: 0.27%
- Plus: SEBON Regulatory Fee (0.015%) and CDSC DP Fee (NPR 25 per transfer).
WACC & Capital Gains Tax (CGT)
- WACC in MeroShare: Weighted Average Cost of Capital must be calculated and declared via MeroShare EDIS before transferring sold shares.
- Individual Short-Term (≤365 Days): 7.5% CGT on net profit.
- Individual Long-Term (>365 Days): 5.0% CGT on net profit, incentivizing multi-year investing.
- Institutional Investors: 10.0% CGT on net realized profit.
Break-Even Friction & Over-Trading
- Round-Trip Drag: Buying and selling incurs approximately 0.8% to 1.1% in cumulative friction fees. A stock must rise at least ~1.0% just for you to break even.
- The Small-Order Penalty: The flat NPR 25 DP fee and minimum NPR 10 broker charge disproportionately penalize micro-orders under NPR 5,000.
- EDIS Deadline: Failure to complete EDIS transfer on MeroShare before 6:00 PM on T+1 causes an immediate 20% close-out penalty auction charge.
Fixed Deposit (FD) & Recurring Deposit (RD) Calculator
Calculate compound interest, quarterly compounding, statutory 5% TDS, and maturity values for safe bank savings in Nepal.
Fixed Deposit Parameters
Quarterly DefaultFD Growth Trajectory
Recurring Deposit Parameters
Monthly SavingsUnderstanding Fixed & Recurring Deposits, NRB Directives & TDS
Quarterly compounding mathematics, BAFIA banking protections, and tax withholding rules across Class A, B, and C financial institutions.
Quarterly Compounding Formula
Nepali banks compound interest on fixed deposits every quarter (every 3 months):
A = P × (1 + r/4)⁴ⁿ
Where P is principal, r is annual interest rate, and n is tenure in years. Because interest is credited 4 times a year and added to principal, the Effective Annual Rate (EAR) is approximately 0.25% to 0.40% higher than the nominal stated coupon rate.
NRB Circulars & Safety Net
- DCGF Deposit Guarantee: Under the Deposit and Credit Guarantee Fund (DCGF), individual retail deposits are statutorily insured up to NPR 5,00,000 per depositor per licensed institution.
- Institutional Spread: By NRB circular, institutional fixed deposit rates must be at least 1.0% lower than individual retail rates.
- Rate Adjustment Limits: Banks can only adjust their published monthly deposit interest rates by a maximum of 10% relative to the prior month.
TDS, Real Returns & Liquidity
- 5% Final Withholding: Resident individual deposit interest is subject to a 5% TDS deduction at source by the bank, which is a final tax.
- Inflation Trap: An 8.0% FD yields 7.6% net after 5% TDS. If annual inflation is 6.5%, your real purchasing power expands by only 1.1%.
- Loan Against FD: You can borrow up to 90% of your FD balance within 2 hours at an interest rate just 1% to 2% higher than your FD coupon, avoiding premature liquidation penalties.
Retirement & Financial Goal Planner
Estimate inflation-adjusted retirement corpus requirements and calculate required monthly investments for major life milestones.
Retirement Timeline & Expenses
Sustainable DrawdownRetirement Corpus Accumulation Trajectory
Financial Goal Parameters
Target SIPUnderstanding Retirement Corpus Math & Nepal's 3-Pillar Model
How to calculate an inflation-adjusted nest egg and coordinate statutory social security with personal investing.
Retirement Corpus Mathematics
Required corpus is determined by inflation-adjusted future annual expenses:
Corpus = Annual Expense × (25 to 30)
At 6.5% inflation, an NPR 50,000 monthly living cost today balloons to over NPR 1,76,000 per month in 20 years. To safely withdraw NPR 21 Lakhs annually for 25+ years without risking bankruptcy, an inflation-adjusted corpus of ~NPR 3.2 to 3.8 Crores is required.
Nepal's 3 Retirement Pillars
- Pillar 1 (SSF - Social Security Fund): Mandatory 31% contribution (20% employer + 11% employee) provides lifetime monthly pension from age 60, medical reimbursement, and dependent survivor protection.
- Pillar 2 (CIT / EPF): Statutory provident funds providing Section 63 tax deductions (up to NPR 3 Lakhs), 80% loan access, and capital preservation.
- Pillar 3 (Personal Growth Investments): Open-ended mutual fund SIPs, blue-chip NEPSE dividend equities, and real estate that generate inflation-beating capital growth.
The Nepal-Adapted 3.5% Rule
- Why the US 4% Rule Fails: Developed economies have 2% inflation and deep bond markets. In Nepal, 6.5% inflation requires withdrawing a conservative 3.0% to 3.5% annually.
- Critical Illness Isolation: Earmark a standalone health insurance policy (NPR 10-20 Lakhs sum insured) to ensure sudden private hospital bills do not force premature corpus liquidation.
- The Cost of Delay: Waiting 10 years to begin retirement investing forces you to invest nearly 3.5× more money each month to achieve the exact same retirement nest egg.
CAGR & Investment Growth Calculator
Measure annualized geometric compound growth rates for NEPSE stocks, mutual funds, gold, fixed deposits, and real estate in Nepal.
Investment Parameters
Annualized compound return estimatorCapital vs Return Breakdown
Visual distribution of starting capital and compounded returnsInvestment Compounding Curve
Annualized geometric asset growth over 5.0 YearsCompounding Growth Projections (12.47% CAGR)
Projected future portfolio value if initial capital of NPR 1,00,000 continues to compound at this annualized rate.
3-Way Investment Comparison
Compare CAGR across multiple asset classes in Nepal (e.g. Stocks, Fixed Deposits, and Real Estate) to see which delivered superior compound growth.
Understanding CAGR (Compound Annual Growth Rate)
Essential knowledge for evaluating stocks, mutual funds, and investments in Nepal.
What CAGR Measures
CAGR measures the mean annual growth rate of an investment over a specified multi-year period assuming profits were reinvested and compounded each year.
CAGR vs Simple Average
Dividing total return by years creates an arithmetic average that ignores the compounding effect ("interest on interest") and grossly exaggerates true multi-year performance.
Arithmetic vs Geometric Return
In volatile assets like NEPSE shares, arithmetic return is always higher than geometric CAGR. A 50% gain followed by a 50% loss averages 0%, yet leaves you with a 25% net loss.
When to Use (and When Not To)
Use CAGR for multi-year lump sum holdings like NEPSE blue-chips, gold, or land. Do not use CAGR for recurring monthly SIPs (use XIRR) or short-term day trades.
🇳🇵 Nepal Investment Return Context
Top commercial banks and hydropower companies have historically cycled through bull and bear phases, yielding 12%-18% long-term CAGR.
Commercial bank FDs in Nepal typically compound at 7.5%-10.5% annualized before the statutory 5% TDS deduction.
Land in major urban belts has historically appreciated at 10%-16% CAGR, though liquidity is significantly lower than listed equities.
Nepal Inflation & Purchasing Power Calculator
Estimate future purchasing costs and money purchasing power decay over time based on configurable inflation in Nepal.
Future Cost Parameters
Project future price escalationCurrent Cost vs Future Cost
Visual price escalation caused by compound annual inflationPurchasing Power Erosion Over Time
Real value of today's NPR 1,00,000 decaying over 10.0 YearsNepal Macroeconomic & Inflation Planning Context
This calculator uses an inflation rate entered by the user. Actual inflation in Nepal changes over time based on economic conditions. Use this calculator for planning and educational purposes rather than as a prediction.
Nepal Rastra Bank (NRB) monetary policy typically targets keeping consumer price inflation within a 5.0%-6.5% corridor, though supply shocks and fuel price volatility can cause temporary spikes.
Because Nepal relies on imports for petroleum, vehicles, and industrial raw materials, and maintains a currency peg with the Indian Rupee (INR 1 = NPR 1.60), domestic inflation is closely tied to Indian inflation dynamics.
Cash kept in zero-interest bank accounts loses real purchasing power every single year. Long-term wealth creation requires investing in assets whose compounding returns outpace inflation (such as NEPSE equities, mutual funds, or productive real estate).
Understanding Inflation Dynamics, Nepal CPI & Wealth Defense
How the silent tax of inflation erodes purchasing power and how to engineer real positive returns in Nepal.
Purchasing Power Math & Rule of 72
Future cost is calculated as FV = PV × (1 + r)ⁿ while remaining purchasing power is PV = FV ÷ (1 + r)ⁿ.
Use the mental shortcut Rule of 72: divide 72 by the annual inflation rate to find how fast prices double. At Nepal's historical 6.5% inflation, everyday living costs double every 11.0 years (72 ÷ 6.5 ≈ 11.0).
Nepal Inflation Drivers & Currency Peg
- INR-NPR Peg Transmission: Because Nepal pegs 100 Indian Rupees to 160 Nepali Rupees and imports over 65% of consumables from India, Indian inflation directly imports into Nepal within 60 days.
- Food vs Headline CPI: While general NRB CPI sits around 5%-7%, food, edible oil, and vegetables frequently spike at 9%-12% due to monsoon supply bottlenecks.
- Healthcare Inflation: Private tertiary healthcare in Kathmandu increases at an estimated 8%-11% annually, outpacing general consumer goods.
Asset Defense: Real vs Nominal Returns
- The Savings Account Illusion: Bank savings accounts yielding 3% while inflation is 6.5% create a guaranteed 3.5% annual loss in real wealth.
- Inflation-Beating Assets: Productive assets (dividend-paying equities, open-ended mutual funds, and commercial real estate) have pricing power that grows cash flows ahead of inflation.
- Debt Beneficiary: Borrowers with long-term fixed-rate loans repay banks with future inflated rupees that possess significantly diminished purchasing power.
Financial Calculators Directory
Explore all 12 free financial tools categorized for Nepal's personal finance, banking, loans, taxation, and stock market rules.
SIP Calculator
Calculate wealth accumulation and compound maturity returns for Systematic Investment Plans in Nepal.
EMI & Loan Calculator
Calculate reducing-balance monthly EMIs, total interest, and full repayment schedules for Nepal loans.
SWP Calculator
Systematic Withdrawal Plan: simulate regular monthly cash flow and project remaining corpus health over time.
Home Loan Calculator
Calculate housing loan installments, LTV health metrics, and long-term interest costs for property in Nepal.
Personal Loan Calculator
Compute monthly repayment schedules, true borrowing costs, and quick tenure comparisons for personal loans.
Vehicle Loan Calculator
Calculate down payment, loan ratio, and monthly EMIs for two-wheelers, cars, SUVs, and electric vehicles.
Fixed Deposit & RD Calculator
Calculate FD and RD returns with quarterly/monthly compounding, statutory 5% TDS deduction, and APY yield.
Nepal Income Tax Calculator
Calculate personal income tax for FY 2082/83 across resident individual and married couple progressive slabs.
NEPSE Share Calculator
Complete NEPSE trading suite: Buy Costs, Sell & Profit, Capital Gains Tax, WACC Average Price, and Break-even recovery.
CAGR Calculator
Measure the Compound Annual Growth Rate of your stock, mutual fund, real estate, or business investments.
Inflation Calculator
Understand the erosion of purchasing power over time and plan for future price escalation in Nepal.
Retirement & Goal Planner
Plan long-term retirement corpus needs, inflation escalation, and required monthly SIPs for major life goals.