How do I use the SGB calculator?

1. Pick how you bought the bond: Choose original subscriber if you bought the tranche directly from RBI at its issue price. Choose bought on exchange if you picked the bond up in the secondary market, which is the only route open to new buyers today. 2. Enter your price and quantity: Enter what you paid per gram and how many grams you hold. For an exchange purchase, also enter the tranche's original RBI issue price, since the 2.50% coupon is paid on that face value and not on what you paid. 3. Set the expected gold price growth: Use a long-term annual assumption rather than extrapolating a sharp recent move. This drives the redemption value and, with it, the taxable gain. 4. Choose your exit: Hold to maturity at eight years, redeem early with RBI on an interest date from the fifth year, or sell on the exchange after a chosen number of years. The exit decides whether the gain is exempt, taxed at 12.5%, or taxed at your slab rate. 5. Set your slab, cess and the ETF expense ratio: The slab rate taxes the interest and any short-term gain, cess sits on top of both, and the expense ratio is the annual drag on the gold ETF used in the side-by-side comparison.

Are Sovereign Gold Bonds still available to buy?

Not from RBI. The last tranche, SGB 2023-24 Series IV, was issued in February 2024 and no new series has followed. Existing bonds still trade on NSE and BSE, so the only way in today is the secondary market, where the price can sit at a discount or premium to the underlying gold value and daily volumes are thin.

Is SGB interest taxable?

Yes. The 2.50% a year is paid on the issue price in two half-yearly instalments and is taxed as income at your slab rate, with cess on top. It is not tax-free, and it is not subject to TDS when the bonds are held in demat form, so it has to be declared as other income in your return.

Can I sell an SGB before five years?

Yes, on the exchange. The five-year rule applies only to premature redemption with RBI, which is allowed on interest payment dates from the fifth year onward. An exchange sale is possible from the day the bond is listed, at the traded price rather than the RBI redemption value, and the gain is taxable at 12.5% beyond 12 months or at your slab rate within.

What happens when an SGB matures?

RBI repays the rupee value of the gold you hold, based on the average closing price of 999-purity gold over the three business days before repayment, along with the final interest instalment. The proceeds are credited to your registered bank account. You receive cash, not metal, and there is nothing to renew or roll over.

Does a bond bought on the exchange still pay 2.50% interest?

It does, but on the original issue price of that tranche rather than on the price you paid. A bond issued at ₹6,000 per gram pays ₹150 a gram a year whoever holds it, so buying it at ₹10,000 on the exchange turns a 2.50% coupon into 1.50% on your own cost. The calculator asks for the tranche issue price separately for this reason.

Tools/

Sovereign Gold Bond (SGB) Calculator

Price the interest, the exit value and the 2026 capital gains rules on a Sovereign Gold Bond, and compare it with a gold ETF.

Purchase Route

Bought the tranche from RBI at its issue price.

Price Paid per Gram

₹500₹50,000

Amount Invested

₹5,000₹1,00,00,000

10 g at ₹6,000 per gram

Expected Gold Growth

0%20%

Exit Route

RBI repays at the end of year 8.

Income Tax Slab

0%30%

Cess

0%10%

Gold ETF Expense Ratio

0%2%

Post-Tax Proceeds After 8 Years

₹1.2 L

9.37% a year after tax

10 g · Maturity

Gold Value at Exit

₹1.1 L

Interest After Tax

₹8,256

₹12,000 received, ₹3,744 tax

Capital Gains Tax

₹0

on a gain of ₹51,056

Capital gains rule applied

Exempt: original subscriber redeeming at maturity

Since 1 April 2026 this exemption covers only the original subscriber who holds to the eight-year maturity.

SGB Versus A Gold ETF

After 8 years	SGB	Gold ETF
Value at exit	₹1,11,056	₹1,07,009
Interest after tax	₹8,256	₹0
Capital gains tax	₹0	₹6,111
Post-tax proceeds	₹1,19,312	₹1,00,898
Annualised post-tax return	9.37%	6.71%

On the same gold assumption the bond is ahead by ₹18,414, because the coupon adds to the gold return and the ETF carries an expense ratio. The comparison does not price the bond's thin exchange liquidity.

Post-Tax Proceeds By Exit Year chart

Exit Year Breakdown

Year	Exit	Gold Value	Gains Tax	Post-Tax Proceeds
1	Exchange sale	₹64,800	₹1,498	₹64,334
2	Exchange sale	₹69,984	₹1,298	₹70,750
3	Exchange sale	₹75,583	₹2,026	₹76,653
4	Exchange sale	₹81,629	₹2,812	₹82,946
5	Early redemption	₹88,160	₹3,661	₹89,659
6	Early redemption	₹95,212	₹4,578	₹96,827
7	Early redemption	₹1,02,829	₹5,568	₹1,04,486
8	Maturity (exempt)	₹1,11,056	₹0	₹1,19,312

About the SGB calculator

A Sovereign Gold Bond tracks the price of gold and pays 2.50% a year on the issue price on top of it, in two half-yearly instalments, over an eight-year tenure. Two things have changed since the scheme's early years, and both decide what you actually keep. First, no new tranche has been issued since February 2024, so a new buyer can only pick up existing bonds on the exchange. Second, from 1 April 2026 the capital gains exemption on redemption applies only to the original subscriber who bought at the RBI issue and holds to maturity.

That makes the old shorthand that SGB gains are tax-free wrong for most people buying today. Redeeming early with RBI from the fifth year is taxable, selling on the exchange is taxable, and a secondary-market buyer is taxable even if they hold the bond to its maturity date, with their exchange purchase price as the cost of acquisition. Long-term gains beyond 12 months are taxed at 12.5% without indexation; gains within 12 months are added to your income at slab rates. Cess applies on top.

This calculator prices your holding under whichever of those routes applies to you. It shows the interest before and after tax, the gold value at exit, the capital gains tax with the rule that produced it, total post-tax proceeds, the annualised post-tax return, and the same money in a gold ETF for comparison. Every figure is a scenario built on your growth assumption, not a forecast, and tax positions vary with your own facts, so confirm the treatment with a chartered accountant before you act.

Frequently Asked Questions

Pick how you bought the bond
Choose original subscriber if you bought the tranche directly from RBI at its issue price. Choose bought on exchange if you picked the bond up in the secondary market, which is the only route open to new buyers today.
Enter your price and quantity
Enter what you paid per gram and how many grams you hold. For an exchange purchase, also enter the tranche's original RBI issue price, since the 2.50% coupon is paid on that face value and not on what you paid.
Set the expected gold price growth
Use a long-term annual assumption rather than extrapolating a sharp recent move. This drives the redemption value and, with it, the taxable gain.
Choose your exit
Hold to maturity at eight years, redeem early with RBI on an interest date from the fifth year, or sell on the exchange after a chosen number of years. The exit decides whether the gain is exempt, taxed at 12.5%, or taxed at your slab rate.
Set your slab, cess and the ETF expense ratio
The slab rate taxes the interest and any short-term gain, cess sits on top of both, and the expense ratio is the annual drag on the gold ETF used in the side-by-side comparison.

Post-tax proceeds = gold value at exit − capital gains tax + interest after tax

Gold value at exit = price paid per gram × grams × (1 + growth)^years
Interest = 2.50% × RBI issue price × grams × years, paid half-yearly and taxed at your slab rate plus cess
Capital gains tax = nil for an original subscriber redeeming at maturity; otherwise 12.5% of the gain beyond 12 months, or your slab rate within 12 months, plus cess
Annualised return is the internal rate of return on the half-yearly cashflows, converted to a yearly rate

The annualised return treats each coupon as cash received on its payment date and does not assume you reinvest it. Total proceeds simply add the post-tax coupons to the exit value, so the two figures answer different questions.

A worked example

Suppose you subscribed to a tranche at ₹6,000 per gram for 10 grams, a ₹60,000 investment, gold grows at 8% a year, you hold the full eight years, and you are in the 30% slab with 4% cess. The comparison gold ETF carries a 0.5% expense ratio.

Amount invested: ₹60,000
Interest received over 8 years: ₹12,000
Tax on interest (30% + 4% cess): ₹3,744
Interest after tax: ₹8,256
Gold value at maturity: ₹1,11,056
Capital gain: ₹51,056
Capital gains tax (exempt at maturity): ₹0
Total post-tax proceeds: ₹1,19,312
Annualised post-tax return: 9.37% p.a.
Same ₹60,000 in a gold ETF, after tax: ₹1,00,898

The bond returns ₹1,19,312 after tax, or 9.37% a year, against ₹1,00,898 for the gold ETF on the same gold assumption, a gap of ₹18,414. Two things create it: the coupon, and the exemption on the ₹51,056 gain. Redeem the same bond early in year five and the gain becomes taxable, which cuts the annualised return to 8.63%. Buy the bond on the exchange at ₹10,000 per gram instead, and the gain is taxable at maturity too, leaving 8.01% a year.

From 1 April 2026 the capital gains exemption on redemption is limited to the original subscriber who bought at the RBI issue and holds to the eight-year maturity. Early redemption to RBI, an exchange sale, and any holder who bought in the secondary market are now taxable: 12.5% without indexation beyond 12 months, slab rate within 12 months. Before that date, redemption through RBI was exempt for every holder.

A Sovereign Gold Bond adds a 2.50% coupon to the gold price and carries no expense ratio, which is why it leads the comparison in this calculator on the same gold assumption. Against that, no new tranches are being issued, exchange liquidity is thin, and the tax exemption no longer applies to a secondary buyer. A gold ETF is liquid and simple but charges an annual expense ratio and taxes the whole gain. Digital gold suits small, frequent buys and carries a spread and platform risk. Match the choice to how long you can hold and how easily you need to exit.

The exemption is narrow. From 1 April 2026 it covers only the original subscriber redeeming at maturity. Premature redemption with RBI, an exchange sale, and every secondary-market holder are taxable events, so verify which one describes you with a CA before assuming a tax-free exit.
No new tranches have been issued since February 2024. On the exchange, bonds often trade at a discount or premium to the underlying gold value and volumes are thin, so the price you get on entry and exit may differ from the model here.
Interest is paid on the original issue price, not on the market value of the bond. A bond bought at a much higher price on the exchange therefore yields well under 2.50% on your own cost.
The calculator applies a smooth annual growth rate to the gold price. Real prices move in cycles and can stay flat for years, so treat the exit value as one scenario among many.
Redemption value is set by RBI from the average closing price of 999-purity gold over the three business days before repayment, so the value you receive depends on the price then, not on a projection made today.
Coupons are treated as cash in hand and are not reinvested. Reinvesting them in gold or anything else would change both the total and the annualised return.
Tax rates, the cess and the exemption rules are set by the Finance Act and can change again. This tool encodes the position for FY 2026-27 and is not a substitute for professional advice.

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Sovereign Gold Bond (SGB) Calculator

Inputs

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SGB Versus A Gold ETF

Post-Tax Proceeds By Exit Year chart

About the SGB calculator

Frequently Asked Questions

Track your SGBs next to everything else you own

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