Gold has remained one of the most reliable stores of value for centuries. However, calculating the actual price of a piece of jewelry or a gold bar involves more than just looking at the daily market rate. Our Gold Rate Today Calculator helps you break down the costs, including purity adjustments, making charges, and taxes.
How Gold Value is Calculated
The price you see on news tickers usually refers to 24 Karat gold (99.9% pure). If you are buying jewelry, which is typically 22K or 18K to ensure durability, the price per gram decreases proportionately. The formula used by this calculator is:
Effective Rate: (24K Rate / 24) × Selected Karat
Base Value: Effective Rate × Weight in Grams
Final Price: Base Value + Making Charges + GST/Tax
What are Making Charges?
Making charges are the costs associated with the labor and craftsmanship involved in creating a piece of jewelry. This can vary significantly between jewelers, usually ranging from 3% to 25% of the gold's value depending on the complexity of the design.
Purity Levels Explained
24 Karat: Pure gold. It is soft and not ideal for intricate jewelry.
22 Karat: 91.6% gold mixed with 8.4% other metals (like copper or zinc). This is the standard for high-quality jewelry.
18 Karat: 75% gold, often used for diamond-studded jewelry to provide a stronger grip for the stones.
Example Calculation
Suppose the 24K gold rate today is 6,000 per gram. You want to buy a 10g chain in 22K gold with a 10% making charge and 3% GST.
22K Rate: (6,000 / 24) * 22 = 5,500 per gram.
Base Price: 5,500 * 10g = 55,000.
Making Charge: 10% of 55,000 = 5,500.
Tax: 3% of (55,000 + 5,500) = 1,815.
Total: 55,000 + 5,500 + 1,815 = 62,315.
function calculateGoldRate() {
var weight = parseFloat(document.getElementById('goldWeight').value);
var rate24K = parseFloat(document.getElementById('marketRate').value);
var karat = parseFloat(document.getElementById('goldPurity').value);
var makingPercent = parseFloat(document.getElementById('makingCharges').value);
var taxPercent = parseFloat(document.getElementById('taxRate').value);
if (isNaN(weight) || isNaN(rate24K) || weight <= 0 || rate24K <= 0) {
alert("Please enter valid positive numbers for weight and market rate.");
return;
}
// 1. Calculate the rate for the specific karat
var effectiveRatePerGram = (rate24K / 24) * karat;
// 2. Base gold value
var baseValue = effectiveRatePerGram * weight;
// 3. Making charges
var makingChargesValue = baseValue * (makingPercent / 100);
// 4. Subtotal before tax
var subtotal = baseValue + makingChargesValue;
// 5. Tax amount
var taxAmount = subtotal * (taxPercent / 100);
// 6. Final total
var totalFinal = subtotal + taxAmount;
// Display results
document.getElementById('resEffectiveRate').innerText = effectiveRatePerGram.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resBaseValue').innerText = baseValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resMakingCharges').innerText = makingChargesValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTaxAmount').innerText = taxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalFinal').innerText = totalFinal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('goldResult').style.display = 'block';
}