SGB Return Calculator

Use this SGB return calculator to estimate the total returns from your Sovereign Gold Bond (SGB) investment. The return includes annual interest income and appreciation in gold price over the holding period.

For instant calculation with all RBI SGB series, use the full SGB Calculator.

How SGB Returns Are Calculated

Returns on Sovereign Gold Bonds come from two components:

Fixed interest of 2.5% per annum on the issue price
Increase in gold price at maturity or sale

Interest is paid semi-annually, while capital appreciation depends on the prevailing gold price.

SGB Return Calculation Example

Suppose you invest in 10 grams of SGB at ₹5,000 per gram.

Total investment: ₹50,000
Annual interest (2.5%): ₹1,250
Total interest over 8 years: ₹10,000

If gold price at maturity becomes ₹7,000 per gram, the redemption value will be ₹70,000 (excluding interest).

Total Returns from SGB

Total return = Interest earned + Gold price appreciation

You can calculate exact figures easily using our SGB Calculator.

Tax on SGB Returns

Interest earned on SGB is taxable as per income tax slab. However, capital gains on redemption at maturity are tax-free for individual investors.

Frequently Asked Questions

Is SGB return guaranteed?: Interest is fixed at 2.5% per annum, but gold price appreciation depends on market conditions.
Does SGB return include interest?: Yes, total return includes both interest income and gold price appreciation.
Which is better: SGB or physical gold?: SGB offers interest income and tax benefits, unlike physical gold.