Calculate the final price of gold jewelry in India, including making charges and GST.
Enter the rate for 22K or 24K as quoted by your jeweler.
Typical making charges range from 8% to 25%.
Base Gold Price:₹0
Making Charges:₹0
GST (3%):₹0
Total Amount to Pay:₹0
Understanding Gold Price Calculation in India
Buying gold in India is not just about the weight of the metal. The final bill you pay at a jewelry showroom involves several components that can significantly affect the total cost. Whether you are buying gold coins for investment or jewelry for a wedding, understanding the breakdown helps you negotiate better.
Components of the Gold Bill
The standard formula used by jewelers across India generally follows this structure:
Component
Description
Gold Rate
Usually quoted per 10 grams. This fluctuates daily based on international markets and currency exchange rates.
Weight
The actual weight of the jewelry in grams.
Making Charges (VA)
The cost of labor involved in creating the jewelry. This is usually a percentage of the gold value or a fixed rate per gram.
GST
Goods and Services Tax. Currently, the Government of India levies a flat 3% GST on the total value (Gold Value + Making Charges).
The Formula
To calculate the final price manually, use the following logic:
Price of 1 Gram: Divide the 10g rate by 10.
Base Gold Value: Price of 1 Gram × Weight in Grams.
Value Addition (Making Charges): Base Gold Value × Making Charge Percentage.
Subtotal: Base Gold Value + Making Charges.
GST Amount: Subtotal × 3%.
Final Price: Subtotal + GST Amount.
Example Calculation
Assume the gold rate is ₹60,000 per 10g, you are buying a chain weighing 10 grams, and the making charges are 12%.
Base Cost: ₹60,000
Making Charges (12% of 60k): ₹7,200
Subtotal: ₹67,200
GST (3% of 67,200): ₹2,016
Total Price: ₹69,216
24K vs. 22K Gold
24K Gold is 99.9% pure and is mostly used for coins and bars. It is too soft for intricate jewelry. 22K Gold contains 91.6% gold mixed with other metals like copper or silver to provide durability, making it the standard for jewelry in India. Ensure you input the correct rate corresponding to the purity you are purchasing.
function calculateGoldPrice() {
// Get inputs
var ratePer10g = parseFloat(document.getElementById('goldRateInput').value);
var weightGrams = parseFloat(document.getElementById('goldWeightInput').value);
var makingPercent = parseFloat(document.getElementById('makingChargesInput').value);
// Validation
if (isNaN(ratePer10g) || isNaN(weightGrams) || isNaN(makingPercent)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (ratePer10g <= 0 || weightGrams <= 0 || makingPercent < 0) {
alert("Please enter positive values.");
return;
}
// Calculation Logic
// 1. Calculate price of the gold content
var ratePerGram = ratePer10g / 10;
var baseGoldPrice = ratePerGram * weightGrams;
// 2. Calculate Making Charges
var makingChargesAmount = baseGoldPrice * (makingPercent / 100);
// 3. Subtotal before GST
var subTotal = baseGoldPrice + makingChargesAmount;
// 4. Calculate GST (3% standard in India)
var gstAmount = subTotal * 0.03;
// 5. Total
var totalAmount = subTotal + gstAmount;
// Formatting helper for Indian Currency
var formatter = new Intl.NumberFormat('en-IN', {
style: 'currency',
currency: 'INR',
maximumFractionDigits: 2
});
// Display Results
document.getElementById('displayBasePrice').innerText = formatter.format(baseGoldPrice);
document.getElementById('displayMakingCharges').innerText = formatter.format(makingChargesAmount);
document.getElementById('displayGST').innerText = formatter.format(gstAmount);
document.getElementById('displayTotal').innerText = formatter.format(totalAmount);
// Show result box
document.getElementById('resultBox').style.display = "block";
}