Work out sovereign gold bond return instantly with clear inputs, formula shown and shareable results.
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.
SGB return
Total = (redemption - issue) × grams + issue value × coupon × 8 years
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.
The interest is contractually fixed on the amount subscribed, so it does not rise with the gold price.
In several regimes capital gains on redemption at maturity are exempt while the interest is taxable — check current rules.