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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.

About 3 min to an answer Free, no sign-up Runs in your browserRuns on your device
Read the lesson: Sovereign gold bonds →
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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.

  1. 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.

  2. 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.

  3. 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.

  4. 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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