Whether you are buying new jewelry or selling old gold, understanding how the final price is calculated is essential. This gold rate calculator online helps you break down the costs associated with gold purchases, including purity adjustments, labor costs, and taxes.
The Gold Calculation Formula
Jewelers typically follow a specific formula to arrive at the final billing price. Our calculator uses the following logic:
Total Price = (Gold Value × Weight × Purity Factor) + Making Charges + Taxes
Gold Value: The market rate for 24K gold per gram.
Purity Factor: For 22K gold, the factor is 22/24 (0.916). For 18K, it is 18/24 (0.75).
Making Charges: These are labor costs, usually charged as a percentage of the gold value.
GST/Tax: Statutory taxes applied to the sum of the gold price and making charges.
Understanding Gold Purity (Karats)
Karat (K)
Purity Percentage
Common Use
24K
99.9%
Investment coins, bars
22K
91.6%
Traditional bridal jewelry
18K
75.0%
Diamond and stone-studded jewelry
14K
58.3%
Daily wear jewelry
Example Calculation
If the current 24K gold rate is $70 per gram and you want to buy 10 grams of 22K jewelry with 5% making charges and 3% tax:
Actual Gold Price: $70 × (22/24) = $64.16 per gram.
Price for 10g: $64.16 × 10 = $641.66.
Making Charges (5%): $641.66 × 0.05 = $32.08.
Subtotal: $641.66 + $32.08 = $673.74.
Tax (3%): $673.74 × 0.03 = $20.21.
Final Price: $693.95.
Why Making Charges Vary?
Making charges depend on the complexity of the design. Machine-made jewelry usually has lower making charges (3% to 8%), while intricate handcrafted pieces can go as high as 20% to 25%. Always use an online gold rate calculator to verify the math before making a purchase.
function calculateGoldRate() {
var currentRate = parseFloat(document.getElementById("currentRate").value);
var goldWeight = parseFloat(document.getElementById("goldWeight").value);
var purity = parseFloat(document.getElementById("purity").value);
var makingChargePercent = parseFloat(document.getElementById("makingCharge").value) || 0;
var gstRate = parseFloat(document.getElementById("gstRate").value) || 0;
var symbol = document.getElementById("currencySymbol").value || "$";
if (isNaN(currentRate) || isNaN(goldWeight) || currentRate <= 0 || goldWeight <= 0) {
alert("Please enter valid positive numbers for Gold Rate and Weight.");
return;
}
// 1. Calculate basic value based on purity
// Formula: (24K Rate * (Actual Purity / 24)) * Weight
var purityFactor = purity / 24;
var basicValue = (currentRate * purityFactor) * goldWeight;
// 2. Calculate making charges
var makingCharges = basicValue * (makingChargePercent / 100);
// 3. Calculate Tax (applied on Gold Value + Making Charges)
var subTotal = basicValue + makingCharges;
var taxAmount = subTotal * (gstRate / 100);
// 4. Final Total
var totalAmount = subTotal + taxAmount;
// Display Results
document.getElementById("resBasicValue").innerText = symbol + " " + basicValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resMakingCharges").innerText = symbol + " " + makingCharges.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTaxAmount").innerText = symbol + " " + taxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTotal").innerText = symbol + " " + totalAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("goldResult").style.display = "block";
}