Our SGB calculator provides two dedicated calculation modes designed to match how you invest in Sovereign Gold Bonds:
If you purchased an SGB directly from the Reserve Bank of India (RBI) through banks, Post Offices, or SHCIL during a primary subscription tranche, you should use the Primary Sovereign Gold Bond calculator.
The RBI issues each release under a specific series name (e.g., 2023-24 Series IV). When you select the series name, we automatically populate the official price per gram and coupon schedule. You can apply the ₹50 per gram online discount if you applied digitally. The calculator computes your exact semi-annual interest payout and provides the specific calendar months when interest will be credited to your bank account.
If you purchased an SGB in demat form from the secondary stock market (NSE or BSE) through trading platforms like Zerodha, Groww, Angel One, or Upstox, or if you already know your nominal investment amount, you should use the Secondary Sovereign Gold Bond calculator.
Important Rule: SGB interest is always calculated at 2.50% per annum on the nominal issue price of that tranche, not on the market price you paid on the stock exchange.
A Sovereign Gold Bond (SGB) provides returns through two distinct streams:
To calculate overall returns using a sovereign gold bond returns calculator, combine the cumulative semi-annual interest with the capital gains at redemption:
Total Return = Cumulative 2.5% Interest + ( Redemption Price − Issue Price ) × Units
Example (₹1,00,000 Investment for 8 Years):
Here is a reference breakdown of semi-annual interest earnings and estimated 8-year maturity values across common investment amounts:
| Investment (₹) | Gold Quantity | Semi-Annual Payout | 8-Year Total Interest | Maturity Value (at ₹7,500/g) | Total Return |
|---|---|---|---|---|---|
| ₹50,000 | 10 grams | ₹625 | ₹10,000 | ₹75,000 | ₹85,000 |
| ₹1,00,000 | 20 grams | ₹1,250 | ₹20,000 | ₹1,50,000 | ₹1,70,000 |
| ₹2,50,000 | 50 grams | ₹3,125 | ₹50,000 | ₹3,75,000 | ₹4,25,000 |
| ₹5,00,000 | 100 grams | ₹6,250 | ₹1,00,000 | ₹7,50,000 | ₹8,50,000 |
| ₹10,00,000 | 200 grams | ₹12,500 | ₹2,00,000 | ₹15,00,000 | ₹17,00,000 |
| Feature | Sovereign Gold Bond (SGB) | Physical Gold | Gold ETFs |
|---|---|---|---|
| Annual Yield | +2.50% per year | 0% | 0% |
| Capital Gains Tax at Maturity | 100% Tax-Exempt | Taxable | Taxable |
| Making / Storage Charges | Zero | 8% - 25% + Locker Fees | 0.5% - 1% Expense Ratio |
| Purity Guarantee | 999 Purity (Govt. Backed) | Subject to Hallmarking | 995+ Purity |
SGB interest is calculated at a fixed rate of 2.50% per annum on the original nominal issue price (face value) of the bond. The annual interest is divided into two equal half-yearly installments (1.25% every 6 months) and credited directly to your bank account.
There is a 2.50% annual simple interest paid on the nominal investment amount, whether you buy from the Primary Market during RBI subscription or from the Secondary Market on stock exchanges.
Simple Interest is used to calculate Sovereign Gold Bond interest. The 2.50% rate is calculated strictly on the initial nominal price and is paid out semi-annually without compounding.
SGB interest is credited every 6 months from the date of issue of that specific tranche. When you use our primary calculator, we show the exact calendar months when interest will be credited to your bank account.
Yes, you are required to pay tax on SGB annual interest based on your income tax slab under 'Income from Other Sources'. There is no TDS deducted on SGB interest payouts.
Yes. Under Section 47(viic) of the Income Tax Act, any capital gains realized upon redemption at maturity (8 years) or during RBI's premature redemption window (after 5 years) are 100% tax-free for individual investors.
The redemption price is fixed in Indian Rupees based on the simple average of the closing price of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) for the previous 3 working days.
Interest is always calculated on the original nominal issue price (face value) set by RBI for that specific tranche, NOT on the trading price you paid on broker platforms like Zerodha or Groww.