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