🇮🇳 Gold Price Calculator (India)
Calculate the final price of gold jewellery with GST and Making Charges
Percentage (%)
Flat Rate per Gram (₹)
Pure Gold Value:
₹ 0
Making Charges:
₹ 0
Subtotal (Before Tax):
₹ 0
GST (3%):
₹ 0
Total Payable Amount:
₹ 0
How to Calculate Gold Rate in India: A Comprehensive Guide
Gold holds a special place in Indian culture, symbolizing prosperity and security. Whether you are buying jewellery for a wedding, a festival like Dhanteras, or simply as an investment, understanding how the final price is calculated is crucial. Many buyers are often confused by the difference between the advertised "Gold Rate" and the final amount on their bill.
This guide explains the exact formula jewellers use in India, helping you verify your bill and ensure you aren't being overcharged.
Quick Tip: In India, the gold rate is usually quoted for 10 grams (approx. 1 Tola), but jewellery weight is measured in grams and milligrams. Always convert the 10g rate to a 1g rate before calculating.
The Components of Your Jewellery Bill
The final price of gold jewellery in India is composed of four main elements:
- Price of Gold: Dependent on the current market rate and the purity (Karat) of the gold.
- Making Charges (VA): The cost of labor to design and manufacture the ornament.
- Studded Stones (Optional): If your jewellery has diamonds or gemstones, they are calculated separately.
- GST (Goods and Services Tax): A mandatory government tax applied to the total value.
The Gold Price Formula
To calculate the final price manually, use the following logical steps:
Step 1: Rate per Gram = Rate per 10g / 10
Step 2: Gold Value = Rate per Gram × Weight of Jewellery
Step 3: Making Charges = Gold Value × Making Charge %
Step 4: Subtotal = Gold Value + Making Charges
Step 5: GST Amount = Subtotal × 3%
Final Price = Subtotal + GST Amount
Step 2: Gold Value = Rate per Gram × Weight of Jewellery
Step 3: Making Charges = Gold Value × Making Charge %
Step 4: Subtotal = Gold Value + Making Charges
Step 5: GST Amount = Subtotal × 3%
Final Price = Subtotal + GST Amount
1. Understanding Purity (Karats)
Gold rates vary significantly based on purity. 24K is the purest form but is too soft for intricate jewellery. Most Indian jewellery is made from 22K gold.
| Karat | Purity % | Use Case |
|---|---|---|
| 24K | 99.9% | Coins, Bars (Investment) |
| 22K | 91.6% | Standard Jewellery (BIS 916) |
| 18K | 75.0% | Diamond/Stone Studded Jewellery |
2. Making Charges (Value Addition)
Making charges, often called "wastage" or VA, are the fees charged for the craftsmanship. This varies largely by design:
- Machine-made chains: Lower charges (e.g., 6% to 12%).
- Intricate Temple Jewellery: Higher charges (e.g., 15% to 25%).
Some jewellers charge a flat rate per gram, while others charge a percentage of the gold value.
3. Goods and Services Tax (GST)
Since the implementation of GST in India, a flat rate of 3% is applied to the final value of gold jewellery (including making charges). This replaced the earlier VAT and Excise duty structure.
Example Calculation
Let's assume you are buying a 15 gram gold chain. The shop board says the 22K Gold Rate is ₹60,000 per 10 grams. The making charge is 12%.
- Rate per gram: ₹60,000 / 10 = ₹6,000
- Gold Value: ₹6,000 × 15g = ₹90,000
- Making Charges (12%): ₹90,000 × 0.12 = ₹10,800
- Subtotal: ₹90,000 + ₹10,800 = ₹1,00,800
- GST (3%): ₹1,00,800 × 0.03 = ₹3,024
- Final Amount: ₹1,00,800 + ₹3,024 = ₹1,03,824
Why Does the Rate Differ Between Shops?
You may notice slight variations in the daily gold rate between different jewellers in the same city. This is due to:
- Association Rates: Local jewellers' associations often set a daily guideline rate.
- Banking Premiums: The cost at which the jeweller procures gold from the bank.
- Brand Premium: Big brands may charge slightly higher base rates compared to local smiths.
Using the calculator above ensures that regardless of the base rate, you can accurately estimate the final "on-road" price of your purchase.