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Sovereign Gold Bond Return Calculator

Work out sovereign gold bond return instantly with clear inputs, formula shown and shareable results.

About Sovereign Gold Bond Return Calculator

A sovereign gold bond tracks the gold price and pays a small fixed coupon on the issue value, over a standard eight-year term. That coupon is the edge over physical gold, since there are no making or storage charges to erode the return.

Formula

SGB return

Total = (redemption - issue) × grams + issue value × coupon × 8 years

Worked example

With the default values below, Sovereign Gold Bond Return Calculator returns Total Return Over Eight Years of $197,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Issue Price Per Gramminimum 0
5,200
Redemption Price Per Gramminimum 0
8,100
Grams Subscribedaccepts 1–4,000
50
Annual Interest Rateaccepts 0–6 %
2.5 %

Results

Total Return Over Eight Years
$197,000.00
Interest Received
$52,000.00
Capital Gain On Gold Price
$145,000.00
Annualised Return
7.304%

Step by step

  1. 1Values used
  2. 2SGB return
  3. 3Total Return Over Eight Years= 197,000.00
  4. 4Interest Received= 52,000.00
  5. 5Capital Gain On Gold Price= 145,000.00
  6. 6Annualised Return= 7.304

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why is the coupon on issue price rather than market value?

The interest is contractually fixed on the amount subscribed, so it does not rise with the gold price.

Is redemption gain taxed?

In several regimes capital gains on redemption at maturity are exempt while the interest is taxable — check current rules.

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