Sovereign Gold Bond return
See the full return on a Sovereign Gold Bond: the fixed 2.5% annual coupon (taxable at your slab), plus the gain from the gold price itself, which is tax-free if you hold to maturity.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Amount invested
What you put in at the issue price. SGBs are denominated in grams of gold, but the rupee amount is all the calculator needs.
- Gold appreciation
Your own assumption for how much the gold price rises each year. This is the uncertain part — nobody knows it — so try a range rather than one figure.
- Years held
The full term is eight years, which is when the capital gain becomes tax-free. Shorter holds are allowed via the exchange or the fifth-year window, but then the gain is taxable.
- Your slab
Applied to the 2.5% interest, which is taxable as income every year. It does not touch the capital gain at maturity.
Worked example: ₹5 lakh, gold up 8% a year
₹5,00,000 in an SGB, 8% annual gold appreciation assumed, held the full 8 years, 30% slab.
What to enter
- Amount invested
- ₹5,00,000
- Gold appreciation
- 8% a year
- Years
- 8
- Slab
- 30%
What it shows you
- Interest over 8 yrs (pre-tax)
- ₹1,00,000
- Interest after 30% slab
- ₹70,000
- Maturity value (gold)
- ≈ ₹9,25,465
- Capital gain (tax-free)
- ≈ ₹4,25,465
- Total received
- ≈ ₹9,95,465
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
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- Market Basics12 minEPF, PPF and NPS: the accounts that quietly do the workThe three retirement accounts most Indians already hold, what each actually returns, how they are taxed, and where they should sit in an allocation.
- Market Basics11 minHow REITs, InvITs and gold are taxedThe instruments outside the equity-and-debt-fund frame have their own rules — a REIT payout arrives in parts taxed three different ways, and a Sovereign Gold Bond held to maturity is the rare holding that escapes capital gains entirely.