Sovereign Gold Bond Calculator
Interest, redemption value and total return on your SGBs.
From your SGB certificate or statement.
RBI announces the redemption price for each tranche.
How you exit
Your result
—
Enter your numbers to see the result.
This sovereign gold bond calculator shows what your SGBs have earned: the 2.5% yearly interest paid on the issue price plus the rise in the gold price. Enter the number of grams, the issue price, the redemption or current price and how long you held them. It shows the total return, the CAGR and how each exit route is taxed.
What is a Sovereign Gold Bond Calculator?
Sovereign Gold Bonds (SGBs) are government securities issued by RBI on behalf of the Government of India, denominated in grams of gold. Instead of buying physical gold, you hold a bond whose value moves with the gold price, and you earn 2.5% a year in interest on the issue price, paid every six months.
SGBs have an 8-year term, with an option to redeem early through RBI after 5 years on interest dates. No new tranches have been issued since early 2024, but millions of investors still hold them and many are now reaching early redemption and maturity. This sovereign gold bond calculator works out the full return.
How does the Sovereign Gold Bond Calculator work?
The calculator multiplies units by the issue price for your cost and by the redemption price for the redemption value. Interest is 2.5% of the issue price for each year held.
Total value is redemption value plus interest. CAGR is the yearly growth rate from cost to that total. It then applies tax: interest at your slab, and capital gains only if you sold on the exchange.
How to use the Sovereign Gold Bond Calculator step by step
- Enter the units you hold.
- Enter the issue price from your statement.
- Enter the redemption or current price.
- Enter the years held.
- Choose how you exit and your tax slab.
- Read the total return, CAGR and value after tax.
Sovereign Gold Bond Calculator example with real numbers
Say you hold 20 units bought at an illustrative issue price of ₹3,200 a gram and redeem them through RBI after 7.5 years at ₹15,102 a gram (the redemption price RBI announced for one tranche in August 2026). Use the issue and redemption prices for your own tranche.
| Example input | Value |
|---|---|
| Units | 20 grams |
| Issue price | ₹3,200 per gram (illustrative) |
| Redemption price | ₹15,102 per gram |
| Years held | 7.5 |
| Exit | RBI redemption |
| Tax slab | 30% |
| Example output | Value |
|---|---|
| Total value (redemption + interest) | ₹3,14,040 |
| Amount invested | ₹64,000 |
| Redemption value | ₹3,02,040 |
| Capital gain | ₹2,38,040 |
| Interest received (2.5% a year) | ₹12,000 |
| Tax on interest | ₹3,744 |
| Tax on capital gain | None (exempt on redemption) |
| Value after tax | ₹3,10,296 |
The capital gain is ₹2,38,040, plus ₹12,000 of interest over the years, so the sovereign gold bond calculator shows a total of ₹3,14,040. Because you redeemed through RBI, the gain is tax-free; only the interest is taxed.
Key features of this Sovereign Gold Bond Calculator
- Interest and gold gain combined
- CAGR including interest
- Tax by exit route
- Value after tax
- Works for any tranche
Who should use the Sovereign Gold Bond Calculator?
Who is this Sovereign Gold Bond Calculator for?
- SGB holders nearing early redemption or maturity
- Investors comparing SGB with gold ETFs
- Families tracking gold investments
- Tax planners
Practical use cases
- Checking the return on an SGB tranche
- Deciding between RBI redemption and selling on the exchange
- Comparing with physical gold
- Estimating tax on interest
Key benefits
- Complete: interest plus price gain.
- Tax-aware: exit route matters.
- Clear: CAGR for comparison.
- Simple: a few inputs.
Tips for better results
- Check RBI’s press release for your tranche’s redemption price.
- Early redemption is allowed only on interest payment dates after year 5.
- Redeeming through RBI keeps capital gains tax-free.
- Interest is taxable every year; include it in your return.
Common mistakes to avoid
- Selling on the exchange and paying tax that RBI redemption would avoid.
- Forgetting interest in return calculations.
- Using the current market price instead of RBI’s redemption price.
- Missing the early redemption window.
Limitations of this Sovereign Gold Bond Calculator
- Redemption prices are set by RBI; enter the one for your date.
- It ignores the timing of interest payments in CAGR.
- Surcharge is not included.
Sovereign Gold Bond Calculator vs other ways to calculate
| Form | Extra income | Tax on gain | Costs |
|---|---|---|---|
| SGB (held to redemption) | 2.5% interest | Exempt | None |
| Gold ETF | None | 12.5% after 12 months | Expense ratio |
| Physical gold | None | 12.5% after 24 months | Making charges, storage |
| Digital gold | None | As physical gold | Spread, GST |
For physical gold, use the gold return calculator. For a gold loan on jewellery, see the gold loan calculator.
Privacy and data handling
This Sovereign Gold Bond Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Sovereign Gold Bond Calculator FAQs
What is the SGB interest rate?
2.5% a year on the issue price, paid every six months.
Is SGB redemption tax-free?
Capital gains on redemption by an individual, at maturity or early through RBI, are exempt. Interest is taxable.
When can I redeem SGB early?
After 5 years from issue, on interest payment dates, through RBI’s early redemption window.
How is the SGB redemption price decided?
It is the simple average of the closing price of 999-purity gold published by IBJA for the three business days before redemption.
Is SGB better than a gold ETF?
SGBs pay 2.5% interest and have no expense ratio, and redemption is tax-free, but they are less liquid.
Are new SGBs being issued?
No new tranches have been issued since February 2024. Existing bonds can be bought on stock exchanges.
Related tools
Sources and references
We checked the method and the current figures used in this Sovereign Gold Bond Calculator against these official and primary sources:
- RBI: Sovereign Gold Bond scheme
- India Bullion and Jewellers Association
- Income Tax Department of India
- Department of Economic Affairs, Ministry of Finance
Written and reviewed by the Qorico Team
