Gold Rate Formula Calculator

Gold Rate Formula Calculator

24K (99.9%) 22K (91.6%) 18K (75.0%) 14K (58.3%)

Price Breakdown

Value of Pure Gold:
Making Charges:
GST Amount:
Final Jewelry Price:
function calculateGoldPrice() { var weight = parseFloat(document.getElementById('goldWeight').value); var rate24k = parseFloat(document.getElementById('goldRate').value); var purity = parseFloat(document.getElementById('goldPurity').value); var makingPercent = parseFloat(document.getElementById('makingCharges').value); var gstPercent = parseFloat(document.getElementById('taxRate').value); if (isNaN(weight) || isNaN(rate24k) || isNaN(makingPercent) || isNaN(gstPercent)) { alert("Please enter valid numeric values"); return; } // Formula: (Weight * (Rate/24 * Purity)) var actualGoldValue = weight * (rate24k * (purity / 24)); // Making Charges var makingChargeAmount = actualGoldValue * (makingPercent / 100); // Total before Tax var subtotal = actualGoldValue + makingChargeAmount; // Tax calculation var taxAmount = subtotal * (gstPercent / 100); // Final Price var finalPrice = subtotal + taxAmount; document.getElementById('resBaseValue').innerText = actualGoldValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMakingValue').innerText = makingChargeAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTaxValue').innerText = taxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalValue').innerText = finalPrice.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('goldResult').style.display = 'block'; }

Understanding the Gold Rate Formula

When purchasing gold jewelry, the sticker price is rarely just the "market rate" of gold. Jewelers use a specific mathematical formula to calculate the final billing amount. Understanding this formula helps consumers ensure they are paying a fair price for their investment.

The Mathematical Formula

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

Key Components Explained

  • Gold Purity (Karatage): 24K is 99.9% pure gold. However, most jewelry is made of 22K (91.6% pure) or 18K (75% pure) to provide durability. The price per gram decreases as the karatage goes down.
  • Making Charges: These are the labor costs involved in creating the jewelry. They can be charged as a flat fee per gram or as a percentage of the gold value. Complex designs usually command higher making charges.
  • Taxes (GST): In many regions, a standard Value Added Tax or Goods and Services Tax (GST) is applied to the sum of the gold value and making charges.

Example Calculation

Suppose you are buying a 10-gram gold chain of 22K purity. The current market rate for 24K gold is 6,000 per gram. The jeweler charges 10% making charges and 3% GST applies.

  1. Value of 22K Gold: 10g × (6000 × 22/24) = 55,000
  2. Making Charges (10%): 55,000 × 0.10 = 5,500
  3. Subtotal: 55,000 + 5,500 = 60,500
  4. GST (3%): 60,500 × 0.03 = 1,815
  5. Final Price: 60,500 + 1,815 = 62,315

Tips for Buyers

Always check the daily market rate from a reliable source before visiting a jeweler. Ask for a detailed breakdown of the making charges and ensure the gold is hallmarked (e.g., BIS hallmark) to certify its purity. Using this gold rate formula calculator ensures you are not overcharged during your purchase.

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