What is Gold Investment Calculator?
Calculate returns on physical gold investment and Sovereign Gold Bond (SGB) with 2.5% annual interest Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Physical gold return is purely price appreciation. SGB gives additional 2.5% annual interest + gold price appreciation. SGB capital gains are tax-free at maturity (8 years). Making charges on physical gold (8-20%) reduce entry value.
How to Use This Calculator
- Select investment type (physical gold, digital gold, or Sovereign Gold Bond)
- Enter the purchase price per gram at time of investment
- Enter quantity in grams or value in rupees
- Enter current gold price per gram
- Click Calculate to see total return, CAGR, and comparison between gold types
Worked Example
Physical Gold: 100g bought at ₹4,500/g | Current: ₹7,200/g | 5 years → Return: ₹2.7L (60%) | CAGR: 9.86% | SGB would add: 2.5% × 5yr = 12.5% extra interest
Why Use This Tool?
- Compare physical gold vs SGB vs digital gold returns
- Understand full cost of physical gold including making charges
- Calculate SGB additional interest income and tax benefits
- Decide optimal gold investment form for your goals
Frequently Asked Questions
What is Sovereign Gold Bond (SGB)?
SGB is a government security issued by RBI, denominated in grams of gold. It offers: (1) Gold price appreciation (same as physical gold), (2) 2.5% annual interest on purchase price (taxable), (3) Zero capital gains tax if held to maturity (8 years). SGBs trade on NSE/BSE with a 5-year early exit option.
Is SGB better than physical gold?
Yes, for investment purposes. SGB gives additional 2.5% annual interest + tax-free capital gains at maturity + zero storage risk. Physical gold has making charges (8-20% for jewelry), storage risk, and GST at purchase. Physical gold is better only if you need it for wearing or traditions.
How has gold performed historically in India?
Gold has given approximately 9-11% CAGR in INR terms over 20 years (partly due to rupee depreciation against dollar). In USD terms, gold returned 6-8% CAGR. During 2019-2023, gold outperformed due to global uncertainty. Gold is a good hedge but not the primary wealth creation vehicle.
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