Sovereign Gold Bond Calculator – Calculate Returns From SGB Scheme In 4 Easy Steps

What Is Sovereign Gold Bond Calculator?

Sovereign Gold Bond Calculator is a online tool to help you as an investor in order to find out the returns earned from investing in SGB Schemes. Sovereign Gold Bond return calculator makes it super easy to calculate the returns in 4 simple steps.

Sovereign Gold Bond in short SGB are government securities which fall under the category of Debt Funds and are denominated in grams of gold with the minimum unit of 1 gram.

These gold bonds were introduced as an substitute of purchasing physical gold by the Government of India (GOI) in November 2015. In simple terms SGB is alternative option for you in case you are looking to buy gold in physical form.

Sovereign gold bond (SGB) have Zero expense ratio, it also earn Fixed interest of 2.5% p.a. which is payable semi-annually (2 times) on the nominal value over and above the usual returns from gold.

The Overall expense in SGB is zero and hence by far the best form of investment in case of gold.

So, if you are thinking to make investment in gold than instead of investing in any other form such as physical gold, digital gold, mutual fund gold schemes or gold ETF’s, SGB is a much better option.

Moreover, capital gains is also exempted when money invested in SGB and is completely tax free.


How Sovereign Gold Bond Calculator Works?

In order to use below moneycontain Sovereign Gold Bond Calculator, you need to first enter the price at which you have bought gold in the SGB scheme, then enter the no. of units i.e. gram (1 unit = 1 gram), next is the expected returns, here make sure to enter the total return including the extra 2.50% fixed returns from SGB.

For example, in general returns from gold historically have been 7-10% p.a. on average, so you add extra 2.50% in these making it 10-12.5% or depending upon your own estimation.

At last you have to enter the tenure (time period) in years, which by the way is minimum 5 years and maximum 8 years.

You will get the result once the values are entered in SGB Calculator, these include your total invested amount, the amount you will get at maturity and the total interest earned from the investment made in SGB scheme.

So go ahead and give it a try below and checkout, how much money can be made using Sovereign gold bond scheme.


Now, that you have calculated the returns using the sovereign bond Interest calculator let us understand in brief about the gold bonds scheme and its features.

In case you want to know everything about SGB than do check out this post on Why Sovereign Gold Bond (SGB) is Better Then Physical, Digital, ETF Gold?

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Why Invest In Sovereign Gold Bonds?

There are many reason to invest in SGB scheme, first and foremost is because of the cost associated with physical form of gold, as well as the returns earned in comparison to SGB is very low.

It also is better than any other form such as Digital, Mutual Fund Gold Schemes, ETF  because of hedging cost, Insurance Cost, Transportation cost, GST charges, Expense ratio etc.

Below are the major benefits and reason to make your next investment of gold in SGB:

Low Risk: Zero risk of handling physical gold, no theft concern, backed by GOI

Earn Interest: 2.50% assured interest per annum on the issue price semi annually, The returns will be directly linked to the market price of gold.

Major Tax Benefits: 

  • No TDS applicable on interest
  • Indexation benefit if bond is transferred before maturity
  • Capital gain tax exempt on redemption

However, The interest which is received from gold bonds is taxable under the IT Act, 1961 as per your income tax slab.

Assured Gold Purity: Gold bond prices are linked to price of gold of 999 purity (24 carat) published by IBJA (Indian Bullion and Jewelers Association Limited).

Sovereign Guarantee: Both on redemption amount and on the interest

Indexation Benefit: In the case, an investor transfers the bonds before maturity, the investor will receive indexation benefits and there is a sovereign guarantee on the interest earned and the redemption money. Indexation is used to adjust the purchase price of an investment to reflect the effect of inflation on it. A higher purchase price means lesser profits, which effectively means a lower tax.

Gold denomination: The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March). In case of joint holding, the limit applies to the first applicant.

Digital Format: Investor has an option to hold these bonds either in paper or demat form, whichever is convenient for an individual.

Tenure: This scheme has a maturity period of 8 years. However, investors can opt to exit the bond after the fifth (5) year on the date of interest payouts only.

Premature withdrawal: Premature encashment of these bonds is allowed after 5 years of issue.

Loan collateral: Investors can use these bonds as collateral against loans from Bank, financial Institutions and Non-Banking Financial Companies (NBFC).

Gift/transfer: Investors can choose to gift or transfer these bonds to others as a gift to any relatives, friends or family members etc.

Online Application: The application process for SGB is very simple and fast, with your stock broker, banks and post offices permitted to provide this service, one can apply it online.

Digital Payment modes: One can opt to purchase these bonds through multiple payment modes, with cheque, cash, DDs or electronic transfer accepted.

Nominee Facility: The SGB scheme has a provision for nomination, as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007

Tradable: Investors can trade these bonds on stock exchanges, The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in de-mat form with depositories can be traded in stock exchanges)

Eligibility Criteria: Unlike other kinds of investments any Indian resident can invest in Sovereign Gold Bonds. Individuals, HUFs, trusts, charitable institutions, universities, etc.

Easy Documentation: To purchase gold bonds, you may require a copy of various documents which are needed for the KYC process such as the Driving License, Passport, Voter ID or PAN Card. Although you won’t require these if you already have a stock broking account who offers investing in SGB Schemes.

Open Best Trading/Demat/Mutual Fund account online within minutes and start investing and trading in stocks, FNO, Commodity, Currency, ETF, SGB, IPO, Gold and many more Products..


Sovereign Gold Bond Calculator With Example:

Let us understand through an example as to how to find out the interest earned from SGB using the SGB return calculator. Let us suppose you invested or want to invest in one of the scheme offered by RBI for SGB.

Below are details of the SGB scheme:

Tranche name : 2021-22 Series V

Offer period : August 9 to August 13 (the bonds will be issued on August 17, 2021)

Issue price : Rs 4,839 (per gram of gold)

Maturity : Eight years with exit option from the fifth year to be exercised on interest payment dates; these bonds will be eligible for trading from the date as notified by the RBI

Subscription limits for individuals : A minimum 1 gram of gold and a maximum 4 kilograms of gold per person in a fiscal (the April-March period); available in units of 1 gram of gold and multiples thereof

Interest : Fixed interest rate of 2.50% per annum on the amount of the initial investment. Interest is credited semi-annually to the bank account of the investor.

Now suppose you are buying at Rs.4,839, 5 units and expecting total interest around 11% p.a. for the investment tenure of 8 years, using the Sovereign Gold Bond Calculator, let us put the values and checkout out the results below:


Sovereign Gold Bond Calculator - Calculate Returns From SGB In 4 Easy Steps


As you can see in the image above, The total invested amount is Rs.24,195, the total value of the invested amount in SGB is Rs.55,758 and the interest earned from SGB scheme is about Rs.31,563.


What Is The Process Of Investing In SGB?

To make investment in Sovereign god bonds (SGB) the easiest way is to apply through a stockbroker using the online trading platform and It will be done in maximum 2 to 3 steps. This is the best way as it saves much time and energy.

Otherwise one can also apply by submitting the application form which will be provided by the issuing banks/SHCIL (Stockholding Corporation of India Limited)offices/designated Post Offices/agents.

It can also be downloaded from the RBI’s website. Private/Govt/Banks may also provide online application facility for SGB. For investors making online payments and whose applications are made in digital mode, they get a Rs 50 per gram discount too!

Read more about Sovereign Gold Bonds in great detail here.



Gold in India is considered auspicious and its demand does not stop at its market value. The precious metal is bought on auspicious occasions as an investment and is also beneficial due to its lower risk in the market.

Even though most Indians prefer to purchase physical gold, the yellow metal can be bought through Sovereign Gold Bonds as well which are offered by the Government of India and the Reserve Bank of India.

If you see the overall average gold returns its been between 7-12% however unlike a stock or a bond, it generates no cash flows in the form of profits, dividends, or interest income except SGB.

Moreover, the time duration required for a commodity to give better return are higher, therefore when you count inflation in your returns it is still less comparing to other class of assets such as equity.

Having said that SGB is one of the best way to invest in gold for long term duration in comparison to any other form.

I hope you have understood the Basics of Sovereign Gold Bonds Scheme and will soon start investing in SGB rather than physical gold atleast.

Open Best Trading/Demat/Mutual Fund account online within minutes and start investing and trading in stocks, FNO, Commodity, Currency, ETF, SGB, IPO, Gold and many more Products..

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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.

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