Sovereign Gold Bond (SGB) Calculator
This Sovereign Gold Bond (SGB) calculator projects the total return you'd receive from an RBI-issued SGB — combining the fixed 2.5% p.a. interest paid out in cash over your holding period with the redemption value based on your assumed gold price growth. Enter your investment amount, expected annual gold price growth and holding period (SGBs mature at 8 years, with early exit permitted from year 5) to see your projected total value.
The amount you invest in Sovereign Gold Bonds, based on the issue price set at the time of subscription.
SGB redemption value tracks the market gold price at maturity — this is your assumption for how much gold prices will rise per year on average, not a guaranteed rate.
SGBs mature at 8 years; early exit is allowed from year 5 via RBI redemption windows or the secondary market.
Total value received (redemption + interest)
सेव करने के लिए लॉग इन करें₹2,05,093
Fixed interest on your original investment, paid out in cash — not compounded or reinvested into more gold.
Frequently asked questions
Is the interest I receive from an SGB taxable?+
Yes — the 2.5% p.a. interest is taxable as income at your slab rate in the year it's received (typically paid out in two half-yearly instalments). This is different from the capital gains treatment on the gold-price-linked redemption amount, which is handled separately.
What's the big tax advantage of SGBs over physical gold or a gold ETF?+
If you hold an SGB to its full 8-year maturity and redeem it, the capital gains arising from gold price appreciation are entirely tax-exempt for individual investors — a real, distinctive advantage. Physical gold and gold ETFs, by contrast, attract capital gains tax on any appreciation when sold, regardless of holding period. This exemption is specific to redemption at maturity (or via the official RBI early-redemption window); selling an SGB on the stock exchange before maturity is treated as a normal capital asset transfer and may attract capital gains tax.
Can I exit an SGB before the 8-year maturity?+
Yes — RBI permits early redemption from the 5th year onward, on the interest payment dates, through a specific redemption window. SGBs listed on stock exchanges can also be sold in the secondary market at any time, though liquidity and pricing there can vary. Check current RBI notifications for the exact redemption windows before planning an early exit.