Gold Rate Calculation Formula

Gold Rate Calculator: Calculate Jewellery Price with Making Charges & GST body { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; line-height: 1.6; color: #333; max-width: 1200px; margin: 0 auto; padding: 20px; } .calculator-container { background-color: #f9f9f9; border: 1px solid #e0e0e0; border-radius: 8px; padding: 30px; margin-bottom: 40px; box-shadow: 0 4px 6px rgba(0,0,0,0.05); } .calculator-title { text-align: center; color: #2c3e50; margin-bottom: 25px; font-size: 24px; font-weight: 700; } .input-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; } @media (max-width: 768px) { .input-grid { grid-template-columns: 1fr; } } .input-group { margin-bottom: 15px; } .input-group label { display: block; margin-bottom: 8px; font-weight: 600; color: #555; } .input-group input, .input-group select { width: 100%; padding: 12px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; box-sizing: border-box; } .btn-calculate { display: block; width: 100%; background-color: #d4af37; /* Gold color */ color: white; border: none; padding: 15px; font-size: 18px; font-weight: bold; border-radius: 4px; cursor: pointer; margin-top: 20px; transition: background 0.3s; } .btn-calculate:hover { background-color: #b5952f; } .result-box { margin-top: 30px; background-color: #fff; border: 1px solid #ddd; border-radius: 4px; padding: 20px; display: none; } .result-row { display: flex; justify-content: space-between; padding: 10px 0; border-bottom: 1px solid #eee; } .result-row:last-child { border-bottom: none; font-weight: bold; font-size: 1.2em; color: #d4af37; } .article-content { background: #fff; padding: 20px; } h2 { color: #2c3e50; margin-top: 30px; border-bottom: 2px solid #d4af37; padding-bottom: 10px; display: inline-block; } h3 { color: #444; margin-top: 25px; } .formula-box { background-color: #f0f4f8; padding: 15px; border-left: 5px solid #d4af37; font-family: monospace; margin: 15px 0; } table { width: 100%; border-collapse: collapse; margin: 20px 0; } table th, table td { border: 1px solid #ddd; padding: 12px; text-align: left; } table th { background-color: #f2f2f2; }
Gold Jewellery Price Calculator
24K (99.9% Pure) 22K (91.6% – Standard for Jewellery) 18K (75.0% – Diamond/Stone Work) 14K (58.3%)
Price per Gram (Selected Purity): 0.00
Cost of Gold (Material Only): 0.00
Making Charges: 0.00
Tax/GST Amount: 0.00
Final Estimate Price: 0.00
function calculateGoldPrice() { // Get Input Elements var marketPriceInput = document.getElementById('marketPrice'); var goldWeightInput = document.getElementById('goldWeight'); var goldPurityInput = document.getElementById('goldPurity'); var makingChargesInput = document.getElementById('makingCharges'); var taxRateInput = document.getElementById('taxRate'); var resultBox = document.getElementById('result'); // Parse Values var marketPrice10g = parseFloat(marketPriceInput.value); var weight = parseFloat(goldWeightInput.value); var purity = parseFloat(goldPurityInput.value); var makingPercent = parseFloat(makingChargesInput.value); var taxPercent = parseFloat(taxRateInput.value); // Validation if (isNaN(marketPrice10g) || isNaN(weight) || isNaN(makingPercent) || isNaN(taxPercent) || marketPrice10g <= 0 || weight <= 0) { alert("Please enter valid positive numbers for Market Price and Weight."); resultBox.style.display = 'none'; return; } // Logic Implementation // 1. Calculate Price for 1 Gram of 24K Gold var pricePerGram24k = marketPrice10g / 10; // 2. Calculate Purity Factor (e.g., 22K is 22/24) var purityFactor = purity / 24; // 3. Calculate Rate per Gram for Selected Purity var ratePerGramActual = pricePerGram24k * purityFactor; // 4. Calculate Base Material Cost var materialCost = ratePerGramActual * weight; // 5. Calculate Making Charges (Percentage of Material Cost) var makingCost = materialCost * (makingPercent / 100); // 6. Subtotal before Tax var subtotal = materialCost + makingCost; // 7. Calculate Tax Amount var taxAmount = subtotal * (taxPercent / 100); // 8. Final Total var finalTotal = subtotal + taxAmount; // Display Results document.getElementById('resPerGram').innerText = ratePerGramActual.toFixed(2); document.getElementById('resMaterialCost').innerText = materialCost.toFixed(2); document.getElementById('resMakingCharges').innerText = makingCost.toFixed(2); document.getElementById('resTax').innerText = taxAmount.toFixed(2); document.getElementById('resTotal').innerText = finalTotal.toFixed(2); resultBox.style.display = 'block'; }

Gold Rate Calculation Formula Explained

Buying gold jewellery is a significant investment, yet many buyers are unaware of how the final price on their invoice is derived. The price of a gold ornament isn't just the weight multiplied by the market rate; it involves purity calculations, making charges (wastage), and government taxes. This guide breaks down the Gold Rate Calculation Formula so you can verify your jeweler's quote.

The Core Formula

The standard formula used by jewelers across the globe to calculate the final price of gold jewellery is:

Final Price = (Price of Gold × Weight) + Making Charges + GST

However, to use this formula accurately, you must first determine the "Price of Gold" based on the purity of the item you are buying.

Step-by-Step Calculation Logic

1. Determine the Price Per Gram (Adjusted for Purity)

Market rates are typically quoted for 24 Karat (24K) gold per 10 grams. However, jewellery is rarely made of 24K gold because it is too soft. Most jewellery is 22K (91.6% pure) or 18K (75% pure).

Step A: Convert the 10g market rate to a 1g rate.

Price of 1g (24K) = Market Rate (per 10g) / 10

Step B: Adjust for the Karat you are buying.

Your Gold Rate = Price of 1g (24K) × (Selected Karat / 24)

Example: If 24K gold is 60,000 per 10g, then 1g is 6,000. For 22K jewellery, the rate is 6,000 × (22/24) = 5,500 per gram.

2. Calculate the Material Cost

Multiply the adjusted rate by the weight of your item.

Material Cost = Your Gold Rate × Weight in Grams

3. Add Making Charges (Labor/Wastage)

Making charges cover the cost of labor and the gold wasted during the manufacturing process. This is usually charged as a percentage of the material cost or a flat fee per gram.

Making Charges = Material Cost × Making Charge %

4. Add Taxes (GST)

Finally, taxes are applied to the sum of the material cost and the making charges. In many regions (like India), this is 3% GST.

Tax = (Material Cost + Making Charges) × Tax Rate %

Understanding Gold Purity (Karats)

Karat Purity % Usage
24K 99.9% Bullion, Bars, Coins (Too soft for jewellery)
22K 91.6% Standard Gold Jewellery, Plain Bands
18K 75.0% Diamond and Stone-studded Jewellery
14K 58.3% High-durability everyday wear (common in US/Europe)

Real-World Example

Let's calculate the price of a 15-gram gold chain made of 22K gold.

  • Current Market Rate (24K/10g): 60,000
  • Making Charges: 10%
  • GST: 3%
  1. 1g 24K Rate: 60,000 / 10 = 6,000
  2. 1g 22K Rate: 6,000 × (22/24) = 5,500
  3. Material Cost: 5,500 × 15g = 82,500
  4. Making Charges: 82,500 × 10% = 8,250
  5. Subtotal: 82,500 + 8,250 = 90,750
  6. GST (3%): 90,750 × 0.03 = 2,722.50
  7. Final Price: 93,472.50

Why Do Jewelers Have Different Rates?

While the market rate for gold bullion (24K) fluctuates globally based on trading, local jewellery associations often set a daily "Board Rate." However, the final price varies between shops primarily due to Making Charges. High-end brands may charge 20-30% making charges for intricate designs, while smaller jewelers might charge 8-12%. Always negotiate on the making charges, as the gold rate itself is usually fixed.

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