About the Sovereign Gold Bond Calculator
This Sovereign Gold Bond (SGB) calculator estimates what your bonds will return. Enter how many grams (units) you hold, the issue price that sets your interest, your purchase price, the expected redemption or sale price per gram and how long you hold. It adds the fixed 2.5% a year interest, paid every six months, to the change in the gold price, then deducts tax to show your net proceeds and post-tax annual return.
SGBs are issued by the Reserve Bank of India on behalf of the Government of India, denominated in grams of 999 gold, with an 8-year term and an option to redeem early from the fifth year on interest payment dates. No new tranches have been issued since early 2024, so most buyers today pick up existing series on NSE or BSE — often at a price different from the original issue price. Interest is always 2.5% of the issue price, so enter both figures if you bought on the exchange.
Tax treatment (tax year 2026-27, Income-tax Act 2025 as amended by the Finance Bill 2026): interest is taxed at your slab rate. The capital gains exemption now applies only if you subscribed at the original issue and hold the bond until redemption at maturity. Premature redemption from year 5, maturity redemption of bonds bought on the exchange, and exchange sales are all taxable: long-term if held more than 12 months (12.5% without indexation), short-term at your slab rate otherwise. The 4% cess is included; surcharge is not. The default exit price is only an example.
With the default inputs, the net amount received after tax is ₹156,617.89. Change any value above to recalculate instantly.
How to use the sovereign gold bond calculator
- 1Enter the number of units (grams) you hold or plan to buy.
- 2Enter the issue price of your series and the price you actually paid.
- 3Enter an expected gold price per gram at exit and the holding period.
- 4Choose maturity, premature redemption or an exchange sale, and say whether you bought at original issue.
- 5Set your slab rate and compare net proceeds and post-tax return.
Formula and method
Each unit U is one gram of gold. Interest is fixed at 2.5% a year of the issue price (not the market price), paid in two half-yearly instalments, and is taxed at your slab rate plus 4% cess. The redemption value is the units times the exit price; RBI sets it from the simple average closing price of 999 gold for the previous three business days.
From tax year 2026-27 the capital gain is exempt only when the bond was subscribed at original issue and is redeemed at maturity. Every other exit (premature redemption, maturity redemption of an exchange-bought bond, or a sale on NSE/BSE) is taxed: long-term at 12.5% plus cess without indexation if held more than 12 months, otherwise at your slab rate. The post-tax annual return is the internal rate of return of the half-yearly cash flows (purchase, net interest, net exit proceeds), annualised.
- U
- Units held (grams)
- Issue price
- Nominal price of the series per gram
- Exit price
- Redemption or sale price per gram
Worked examples
10 units held to maturity, 30% slab
Interest is 2.5% × ₹62,630 = ₹1,565.75 a year, or ₹12,526 over 8 years; tax at 30% + cess takes ₹3,908.11. Redemption at ₹14,800 returns ₹1,48,000 and the ₹85,370 gain is tax-free, so you receive ₹1,56,617.89 in total — about 12.61% a year after tax.
Bought on exchange, sold after 3 years
Interest is 2.5% of the ₹5,000 issue price — ₹2,500 a year on 20 units, ₹7,500 over 3 years, taxed ₹1,560 at 20% + cess. Selling at ₹14,800 gives a ₹56,000 long-term gain taxed at 12.5% + cess (₹7,280), leaving ₹2,94,660.
Premature redemption after 5 years
50 units earn ₹6,000 a year in interest (₹30,000 over 5 years, taxed ₹3,120 at 10% + cess). From 2026-27 premature redemption no longer qualifies for the exemption, so the ₹4,10,000 gain is taxed as long-term at 12.5% + cess (₹53,300), leaving ₹6,23,580.
Bought on the exchange, held to maturity
Interest on 10 units is 2.5% of the ₹48,000 issue value, ₹1,200 a year or ₹3,600 over 3 years, taxed ₹1,123.20. Because the bond was not bought at original issue, the ₹38,000 gain at maturity is taxed at 12.5% + cess (₹4,940), so you receive ₹1,45,536.80.
Frequently asked questions
What interest does a Sovereign Gold Bond pay?+
SGBs pay a fixed 2.5% a year on the initial investment value (the issue price), credited to your bank account every six months. The last instalment is paid with the principal at maturity.
Is SGB redemption tax-free?+
From tax year 2026-27, only if you subscribed at the original issue and held the bond continuously until redemption at maturity. Premature redemption and maturity redemption of bonds bought on the exchange are taxed as capital gains. Interest is always taxable at your slab rate.
How are SGBs taxed if I sell on the stock exchange?+
If held more than 12 months the gain is long-term and taxed at 12.5% plus cess without indexation; otherwise it is short-term and taxed at your slab rate. The same rates apply to premature redemption and to maturity redemption of exchange-bought bonds.
Is buying SGBs on the exchange still tax-efficient?+
Less than before. Budget 2026-27 limited the redemption exemption to original subscribers, so a bond bought on NSE or BSE is taxed on its gain even at maturity. Factor the 12.5% long-term tax into any discount or premium to the gold price.
How is the SGB redemption price decided?+
RBI fixes the redemption price as the simple average of the closing price of 999 purity gold, published by the India Bullion and Jewellers Association, for the three business days before the redemption date.
Can I redeem an SGB before 8 years?+
Yes, from the fifth year onwards on any interest payment date, by applying through your bank, post office, agent or depository participant before the cut-off. Before that you can only exit by selling on a stock exchange.
Is TDS deducted on SGB interest?+
No TDS is deducted on SGB interest, but the interest is still taxable. Report it as income from other sources in your return and pay tax at your slab rate.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.