Nepal is a very cheap country and would definitely allow travellers to do it on a budget. The total cost for our one month trip in Nepal cost €1400 for 2 people, because we're a couple and we come in a pair. So all the average cost below will be for 2 persons. Here's the cost breakdown for 1 month in Nepal.
33% on food
28% on entertainment
14% on transport
9% on Accommodation
7% on clothing
5% on alcohol
Food in Nepal is ridiculously cheap. Mind you, both Pokhara and Kathmandu offer high end restaurants so truly it depends on your budget and style. The only reason why food accounted for most of our expenses in Nepal is because we spent 8 days trekking the Annapurna circuit. Here the food is three times the normal prices however since we trekked off peak we got most Accommodation during the trek for free in exchange to eat at their restaurant. In total we spent €473.79 on on food for two and test me Luke is a big eater.
We spent 9% on Accommodation which accounts for €113.27 only for a whole month. 8 days as mentioned above are not included since we got a deal to eat at the Accommodation in return for free Accommodation at most places during the trek.
14% of our total expenditure was spent on transportation, this accounts to €207.61. It includes the 30 day visa which is €80 for both of us. €52.53 was spent on motorbike rental and fuel for xxx days in Pokhara. The remainder was spent on long distance buses between towns, jeep rides up the trek, tuk tuk rides and bicycle rentals.
28% of our expenses went on entertainment making up a total of €399.09. But €214.29 wasn't essential expenditure we decided to do paragliding and was money well spent in our opinion. The best place to do paragliding with a beautiful backdrop of the Himalaya overlooking the picturesque lake. For more info here is a detailed blog about paragliding in Pokhara. We spent €71.42 for the trekking permits and the rest was spent on a much needed massage after the trek, meditation and a tour in Kathmandu and some entrance fees.
We spent an extra €84 on clothes rental for the trek, which can be easily avoided if you are equipped for this journey.
€100 average on beer and tobacco for the whole month. Beer is surprisingly expensive in Nepal around €2. But alcohol and tobacco can be easily avoided if you're on a budget.
This put Nepal in our top places to visit on a budget spending only €1400 for a month between two and we could have done it cheaper hadn't we spent money on paragliding but as I said it was definitely worth it, you can see more details about paragliding in Pokhara, Nepal here.