Calculator
Sovereign Gold Bond (SGB) Calculator
Project return, interest income and maturity value of a Sovereign Gold Bond holding using the IBJA reference rate.
Total invested
—
Total coupon income
—
Maturity value
—
Total return (CAGR)
—
What is a Sovereign Gold Bond?
A Sovereign Gold Bond (SGB) is a government security issued by the Reserve Bank of India on behalf of the Government of India. Each unit is denominated in grams of gold (1 unit = 1 gram), with a minimum holding of 1 gram and a maximum of 4 kg per individual per fiscal year. The bond pays a fixed annual interest rate (currently 2.50% per annum on the original issue price) plus the redemption value at maturity, which is linked to the prevailing 999-fineness gold price.
Why SGB beats physical gold for investment
- No making charges, no GST. Unlike physical gold or jewellery.
- Coupon income. 2.50% per annum, paid semi-annually.
- Capital gains exemption. Long-term capital gains tax is exempt if held to maturity (8 years). Otherwise, indexation benefits apply.
- Storage-free. Held in dematerialised form, no theft or vault cost.
- Tradable. Listed on stock exchanges; secondary-market exit is available after the 5-year early-redemption window opens.
The trade-offs
- Locks your capital for up to 8 years (early redemption from year 5 only on coupon dates).
- Secondary market often trades at a small discount to the IBJA reference price.
- SGB issuance has been paused multiple times — issuance schedule is at the discretion of RBI/government.