This calculator estimates the loan amount you can receive from a pawn shop for your gold items. Pawn shops offer loans based on a percentage of the item's melt value, factoring in the gold's purity, weight, and the current market price of gold. They also apply a markup to ensure profitability, meaning the loan amount offered is typically less than the item's intrinsic resale value.
How it Works:
Gold Weight (grams): The total weight of your gold item in grams.
Gold Purity (Karat): Indicates the proportion of pure gold in the alloy. Higher karat means higher purity and greater value. The calculator converts the chosen Karat to a decimal percentage (e.g., 18K is 75%).
Current Gold Price per Gram (USD): The live market price for one gram of pure gold (24K).
Pawn Shop Markup (%): The percentage the pawn shop deducts from the item's estimated resale value to determine the loan amount. A higher markup means a lower loan offer.
Calculation Formula:
The estimated pawn value is calculated in steps:
Calculate Pure Gold Weight:Pure Gold Weight = Gold Weight (grams) * (Karat / 24)(Note: Karat value is divided by 24 as 24K represents pure gold.)
Calculate Intrinsic Gold Value:Intrinsic Gold Value = Pure Gold Weight * Current Gold Price per Gram (USD)
Calculate Loan-to-Value Ratio:
Pawn shops typically lend a percentage of the intrinsic value. This calculator uses the inverse of the markup percentage to represent this. For example, a 20% markup implies the loan is 80% of the intrinsic value.
Loan-to-Value = 1 - (Pawn Shop Markup / 100)
Calculate Estimated Pawn Value:Estimated Pawn Value = Intrinsic Gold Value * Loan-to-Value
Example:
Let's say you have a 10-gram 18K gold necklace. The current gold price is $65 per gram, and the pawn shop has a 20% markup.
Intrinsic Gold Value = 7.5 grams * $65/gram = $487.50
Loan-to-Value = 1 – (20 / 100) = 0.80 (or 80%)
Estimated Pawn Value = $487.50 * 0.80 = $390.00
In this scenario, you could expect to receive approximately $390.00 as a loan from the pawn shop for your necklace. Remember that this is an estimate, and actual offers may vary based on the pawn shop's policies, the item's condition, and prevailing market conditions.
function calculatePawnValue() {
var weightGrams = parseFloat(document.getElementById("goldWeightGrams").value);
var karat = parseInt(document.getElementById("karat").value);
var pricePerGram = parseFloat(document.getElementById("currentGoldPriceGram").value);
var markupPercent = parseFloat(document.getElementById("pawnShopMarkup").value);
var pawnValueElement = document.getElementById("pawnValue");
// Input validation
if (isNaN(weightGrams) || weightGrams <= 0 ||
isNaN(karat) || karat <= 0 ||
isNaN(pricePerGram) || pricePerGram <= 0 ||
isNaN(markupPercent) || markupPercent = 100) {
pawnValueElement.textContent = "Invalid input. Please check your entries.";
pawnValueElement.style.color = "#dc3545"; // Red for error
return;
}
// 1. Calculate Pure Gold Weight
var pureGoldWeight = weightGrams * (karat / 24);
// 2. Calculate Intrinsic Gold Value
var intrinsicGoldValue = pureGoldWeight * pricePerGram;
// 3. Calculate Loan-to-Value Ratio (inverse of markup)
var loanToValueRatio = 1 – (markupPercent / 100);
// 4. Calculate Estimated Pawn Value
var estimatedPawnValue = intrinsicGoldValue * loanToValueRatio;
// Display the result, formatted to two decimal places
pawnValueElement.textContent = "$" + estimatedPawnValue.toFixed(2);
pawnValueElement.style.color = "#28a745"; // Green for success
}