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Compare Physical Gold, SGB, and Gold ETF returns with tax impact and year-by-year projections
Tax-free on maturity (8 years) + 2.5% annual interest
RBI pays semi-annual interest on face value. Current rate: 2.5% p.a.
Enter gold investment details and click Calculate
A gold investment calculator helps you estimate the future value of your gold investments across different formats — physical gold (jewellery, coins, bars), Sovereign Gold Bonds (SGB), and Gold ETFs. Gold has been a cornerstone of Indian investment portfolios for centuries, and India remains the world's second-largest consumer of gold. Our calculator factors in making charges for physical gold, the 2.5% annual interest from SGB, and the tax implications for each type, giving you a comprehensive comparison to make informed decisions.
As of 2025, gold prices in India have crossed ₹75,000 per 10 grams, driven by global uncertainty, central bank buying, and rupee depreciation. Over the last 20 years, gold has delivered approximately 10-12% annualized returns in INR terms. While gold doesn't generate income like stocks or real estate, it serves as an excellent portfolio diversifier and hedge against inflation and currency depreciation.
Sovereign Gold Bonds (SGB) issued by RBI are considered the most efficient way to invest in gold in India. They offer 2.5% annual interest on the issue price, and capital gains are completely tax-free if held until maturity (8 years). There are no storage costs, no risk of theft, and no making charges. The only drawback is limited liquidity — SGBs can be traded on NSE/BSE after 5 years, but volumes may be low.
Physical gold (jewellery, coins, bars) is the traditional choice but comes with significant costs: making charges (8-15% for jewellery), storage and insurance costs, purity concerns, and full capital gains tax. When you buy ₹5 lakh of gold jewellery with 10% making charges, only ₹4.5 lakh is invested in actual gold. Physical gold is best for those who value tangibility and cultural significance. Gold ETFs offer stock market convenience with no making charges and instant liquidity, but attract expense ratios (0.5-1%) and LTCG tax after 2 years.
Gold taxation depends on the holding period and type. For physical gold and gold ETFs, gains on gold held less than 2 years are taxed as short-term capital gains at your income tax slab rate (up to 30% + cess). Gold held for 2 years or more qualifies for long-term capital gains (LTCG) taxed at 12.5% plus 4% health and education cess. Sovereign Gold Bonds enjoy a unique advantage: capital gains are completely tax-exempt on maturity (8 years). However, the 2.5% annual interest from SGB is taxable at your slab rate. This makes SGB the most tax-efficient gold investment for long-term holders.
| Feature | Feature | Physical Gold | SGB | Gold ETF |
|---|---|---|---|---|
| Making Charges | Making Charges | 8-15% (jewellery) | None | None |
| Annual Interest | Annual Interest | None | 2.5% on face value | None |
| Storage Cost | Storage Cost | Locker rent (₹2-5K/yr) | Free (demat) | Free (demat) |
| Purity Risk | Purity Risk | Hallmarking needed | Guaranteed (RBI) | Guaranteed |
| Tax on Maturity (8yr) | Tax on Maturity (8yr) | 12.5% LTCG | 0% (Tax-free) | 12.5% LTCG |
| Liquidity | Liquidity | Sell at jeweller | NSE/BSE after 5yr | Instant (stock market) |
| Min Investment | Min Investment | Any amount | 1 gram (~₹7,500) | 1 unit (~₹50-100) |
| Expense Ratio | Expense Ratio | None | None | 0.5-1% annually |
Compare Physical Gold, Sovereign Gold Bond, and Gold ETF side-by-side
Automatic LTCG/STCG tax computation with SGB tax-free maturity benefit
Factor in 5-15% making charges for physical gold to see true returns
Detailed breakdown of gold value, SGB interest, and total returns each year
Select Gold Type Choose between Physical Gold, Sovereign Gold Bond (SGB), or Gold ETF based on your preference
Enter Investment Amount Set your one-time investment amount from ₹10,000 to ₹1 crore using the slider or presets
Set Holding Period Choose how long you plan to hold. SGB offers tax-free gains at 8-year maturity
View Results See final value, CAGR, tax on gains, and post-tax returns with year-by-year breakdown chart
Compare Physical Gold, Sovereign Gold Bond (SGB), and Gold ETF returns with tax impact. SGB offers tax-free gains on 8-year maturity + 2.5% annual interest. See year-by-year projections and post-tax returns. 100% client-side — your financial data never leaves your browser.