How to Calculate Gold SIP Returns in India: Worked Examples

Put ₹1,030 into a gold SIP and you buy gold at that day’s price. The next instalment may buy a different number of grams. To work out your gold SIP return, add the grams from each instalment, value them at today’s rate, then compare the sell proceeds with everything you paid.

Say you are putting money aside for a wedding. The portfolio value on your app may exceed your deposits while the sell quote leaves you with a loss. All prices below are hypothetical, not a forecast or a live quote.

The four numbers behind a gold SIP return

Return in rupees = net sell proceeds − invested amount. Return percentage = return in rupees ÷ invested amount × 100. Compare with the sell proceeds when you want to know your cash-out result. The sell quote may be below the buy quote, and part of each deposit may pay GST instead of buying grams.

The digital-gold examples assume 3% purchase GST on the pre-tax gold amount, no other purchase charge, no separate selling fee and the hypothetical rates shown. They do not describe every provider’s fees. If your receipt lists another charge, include it in the amount paid and use the grams credited. The sell proceeds here exclude any later capital-gains tax liability.

“Gold under tariff heading 7108: 1.5% central GST plus 1.5% state GST, or 3% integrated GST.” – Central Board of Indirect Taxes and Customs

The rate above is the official rate listed for gold; your digital-gold receipt is the source for the amount of tax actually charged on your instalment.

Calculate it month by month

You pay ₹1,030 at the start of each of three months. With the assumed 3% GST, ₹1,000 buys gold and ₹30 pays tax each time. Divide that ₹1,000 by the buy rate on the payment date. Using the final month’s price for every payment would give the wrong number of grams.

At a reference rate of ₹6,500/g, those grams have a current value of ₹3,423.33. At the assumed ₹6,300/g sell quote, proceeds are ₹3,318.00: a ₹228.00 profit, or 7.38% of the ₹3,090 paid. Keep the grams unrounded for the calculation and round the rupee result at the end. Month 3’s lower price bought more gold, though the price could have kept falling after that purchase.

Put the calculation in a spreadsheet

Use one row per completed instalment; do not count a scheduled payment that failed or was skipped. In the template below, row 2 is the first completed purchase. Set K1 to a hypothetical or actual reference price per gram, K2 to the executable sell price per gram and K3 to any separate selling charge in rupees. Enter a quoted per-gram rate for the same gold purity and unit throughout.

For a sheet ending at row 4, use =SUM(B2:B4) for total invested, =SUM(G2:G4) for grams, =SUM(G2:G4)*$K$1 for current value and =SUM(G2:G4)*$K$2-$K$3 for net sell proceeds. Subtract total invested from proceeds for profit or loss; divide that result by total invested for the percentage. If your receipt already reports grams after every deduction, enter those grams in G rather than deducting charges twice. For an ETF SIP, replace grams and gold rates with units and NAV or market prices, as explained below.

That percentage measures your total gain or loss across payments made at different times. It is not an annualised rate. If you need an annualised comparison, record each instalment as a negative cash flow on its purchase date and net sale proceeds as a positive cash flow on the sale date. Your spreadsheet’s XIRR function will calculate the money-weighted rate for those dated cash flows. It says nothing about the next year’s gold price.

What changes with daily, weekly and monthly SIPs?

The return formula stays the same whether you buy daily, weekly or monthly. The purchase dates change. In this 30-day example, each schedule debits ₹3,090, with 3% GST, no other charges and no missed payments. That leaves ₹3,000 to buy gold in each case.

For daily purchases, the calculation is 10×(100/6000) + 10×(100/6250) + 10×(100/5000). For weekly purchases, it is 750/6000 + 750/6250 + 750/5000 + 750/6250. The monthly purchase buys 3000/6000. Daily purchases happen to accumulate the most grams at these chosen prices. Change the price path and weekly or monthly purchases could come out ahead. Your transaction dates and credited grams settle the question for your own SIP.

One-, three- and five-year examples

Hold the gold price flat to see what costs do. Assume a monthly SIP amount of ₹1,030, of which ₹1,000 buys gold at ₹6,000/g after the illustrative 3% GST. The reference rate remains ₹6,000/g; the sell rate is ₹5,800/g, with no further fee. The examples have 12, 36 and 60 completed instalments. Your investment amount grows with the years invested, while the same costs apply to each payment.

At the assumed flat price, more instalments mean a larger rupee loss, while the percentage loss stays the same. Actual buy and sell rates, taxes and completed payments can change. These figures show cost drag, not 1-, 3- or 5-year return predictions. A SIP builds investment discipline, but market risks remain in the short term and the long term.

Flat, rising and falling prices at the time you sell

Go back to the three monthly purchases: ₹3,090 paid for 0.526666… g. Suppose you sell at one of the prices below. In each case the sell quote sits ₹200/g below the reference rate, and there is no separate selling fee.

In the middle row, “flat” describes the reference rate at the end relative to the first buy rate. You still bought at ₹6,000, ₹6,250 and ₹5,000/g along the way. The first and last prices alone cannot tell you how many grams you own.

Digital gold versus a gold ETF SIP

“Gold SIP” can mean recurring purchases of digital gold or systematic investment into a gold-linked fund. Do not put an ETF’s unit price into a digital-gold grams formula.

Gold exchange traded funds (ETFs) trade on an exchange. A gold mutual fund SIP allocates units at the fund’s NAV, its calculated per-unit value. The quoted physical gold price may differ from the price you can transact at for either product. A generic SIP calculator can model a hypothetical balance using a fixed annual growth rate; to reconstruct your gold SIP return, you need the actual units or grams allotted. Unlike a fixed deposit, a gold SIP has no fixed rate or total interest to add up. A lump sum gold purchase uses one entry price; a SIP has many.

If you want to start small, OroPocket offers digital-gold SIPs on daily, weekly and monthly schedules from ₹1, with purchase and instalment rewards in Satoshis. Its app tracks gold purchases, but keep the Bitcoin cashback separate from the gold-return calculation: it is a different asset and does not change your grams or the INR you paid. Digital gold and gold ETFs also have different regulatory treatment, so choose the product as well as the schedule deliberately.

“Digital-gold products offered by online platforms operate entirely outside the purview of SEBI; securities-market investor protections do not apply.” – Securities and Exchange Board of India

Make the number useful before you invest

For your holding, take the credited grams, total INR debited and current sell quote from the same provider. OroPocket’s gold rates in India page can give you a reference for an end-price scenario; use the sell quote to calculate proceeds. If you are planning a wedding fund, try several possible end prices and include the spread and purchase costs. Regular payments do not protect you if the gold price falls.

A gold SIP lets you build a position in small pieces. Your return is what you can sell the accumulated gold for after costs, minus what you paid. OroPocket offers ₹1 entry and flexible SIP schedules; use its transaction breakup to see whether the numbers work for your goal.

FAQ

Is it good to buy gold SIP?

A gold SIP can suit someone who wants to buy small amounts regularly without timing one large purchase. It does not guarantee a gain: your result depends on the grams credited at each price, purchase costs and the eventual sell quote.

Which is the best SIP in gold?

There is no single best schedule or product for everyone. Compare digital gold’s credited grams and sell quote with an ETF or gold fund’s units, trading access and costs, then choose a payment frequency you can maintain.