Sovereign Gold Bond (SGB) Returns Calculator
Calculate returns on RBI Sovereign Gold Bonds — including 2.5% annual interest, capital appreciation based on gold price, and tax treatment (LTCG exempt if held to maturity).
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How to use this calculator
- 1
Sovereign Gold Bonds (SGBs) earn 2.5% annual interest on the issue price, paid semi-annually.
- 2
If held to 8-year maturity: capital gains are COMPLETELY TAX-FREE (LTCG exemption under Sec 47).
- 3
If sold in secondary market before maturity: LTCG at 12.5% (after 12 months); STCG at slab rate (within 12 months).
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Interest income is taxable at your slab rate — add it to your taxable income and pay accordingly.
Frequently asked questions
Are Sovereign Gold Bonds tax-free?
Partially. Capital gains at maturity (after 8 years) are completely tax-free under Section 47(viic). However, the 2.5% annual interest is fully taxable as "Income from Other Sources" at your slab rate. Early redemption (after 5 years on RBI window) or sale in secondary market attracts LTCG at 12.5% (if held > 1 year) or STCG at slab rate (if held ≤ 1 year).
What is the current SGB interest rate?
The SGB interest rate is fixed at 2.5% per annum on the initial investment amount. This rate does not change with gold prices — you earn 2.5% on the issue price regardless of whether gold prices go up or down. Interest is paid semi-annually (every 6 months) directly to your bank account.
Sovereign Gold Bond (SGB) Calculator — Returns, Interest & Tax on RBI Gold Bonds
How to use the sovereign gold bond (sgb) returns
Use this sovereign gold bond (sgb) returns to returns on rbi sovereign gold bonds — including 2. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the sovereign gold bond (sgb) returns works
The sovereign gold bond (sgb) returns calculator uses standard formulas used in financial planning, budgeting, and investment decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
SGB vs Physical Gold vs Gold ETF — which is better?
SGB advantages: 2.5% interest (physical gold/ETF give 0%), capital gain exempt at maturity, no storage cost, backed by RBI. SGB disadvantages: 8-year lock-in (though exit via secondary market after 5 years), limited liquidity. Gold ETF advantages: high liquidity, no lock-in, can buy/sell anytime. Physical gold: most liquid but storage risk + no interest + making charges.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →