Calculate the final price including wastage and making charges
Actual Gold Value:0.00
Wastage Cost:0.00
Total Making Charges:0.00
GST Amount:0.00
Final Payable Amount:0.00
Understanding How to Calculate Gold Rate with Wastage
Buying gold jewelry is often more complex than just checking the daily gold rate. When you purchase an ornament, the final price involves several components beyond the raw gold price. The most significant factors are Wastage (VA) and Making Charges.
1. What is Wastage in Gold Jewelry?
In the process of crafting intricate jewelry, some gold is lost due to cutting, soldering, and polishing. While modern technology has reduced this loss, jewelers charge a "Wastage" fee (Value Addition or VA) to cover this. It is usually calculated as a percentage of the total weight of the gold used.
2. Components of the Final Gold Price
Gold Rate: The prevailing market price for 22K or 18K gold per gram.
Weight: The total weight of the jewelry piece in grams.
Wastage Percentage: A percentage added to the weight to compensate for melting and crafting losses.
Making Charges: The labor cost for designing the jewelry. This can be a flat fee per gram or a percentage.
GST: In many regions, a standard Goods and Services Tax (typically 3%) is applied to the final value (Gold + Wastage + Making Charges).
3. The Calculation Formula
To calculate the final price manually, use the following logic:
Step 1: Calculate Wastage Weight = (Actual Weight × Wastage %) / 100 Step 2: Calculate Gold Cost = (Actual Weight + Wastage Weight) × Current Gold Rate Step 3: Calculate Making Charges = Making Charge per Gram × Actual Weight Step 4: Subtotal = Gold Cost + Making Charges Step 5: Final Price = Subtotal + (Subtotal × GST %)
4. Practical Example
Suppose you are buying a gold chain:
Gold Rate: 6,000 per gram
Weight: 10 grams
Wastage: 12%
Making Charges: 200 per gram
GST: 3%
Calculation:
Wastage Weight = 1.2g (12% of 10g).
Total Gold Weight Charged = 11.2g.
Gold Price = 11.2g × 6,000 = 67,200.
Making Charges = 10g × 200 = 2,000.
Subtotal = 67,200 + 2,000 = 69,200.
GST (3%) = 2,076.
Final Price = 71,276.
function calculateGoldPrice() {
var goldRate = parseFloat(document.getElementById("goldRate").value);
var weight = parseFloat(document.getElementById("goldWeight").value);
var wastage = parseFloat(document.getElementById("wastage").value);
var makingCharges = parseFloat(document.getElementById("makingCharges").value);
var gstRate = parseFloat(document.getElementById("gstRate").value);
if (isNaN(goldRate) || isNaN(weight) || isNaN(wastage) || isNaN(makingCharges) || isNaN(gstRate)) {
alert("Please enter valid numeric values in all fields.");
return;
}
// 1. Calculate base gold value
var actualGoldValue = goldRate * weight;
// 2. Calculate wastage cost
var wastageWeight = weight * (wastage / 100);
var wastageCost = wastageWeight * goldRate;
// 3. Total Gold Cost (Base + Wastage)
var totalGoldCost = actualGoldValue + wastageCost;
// 4. Total Making Charges
var totalMakingCharges = makingCharges * weight;
// 5. Subtotal before GST
var subtotal = totalGoldCost + totalMakingCharges;
// 6. GST Calculation
var gstAmount = subtotal * (gstRate / 100);
// 7. Final Total
var finalPrice = subtotal + gstAmount;
// Display Results
document.getElementById("resValue").innerText = actualGoldValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resWastage").innerText = wastageCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resMaking").innerText = totalMakingCharges.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resGst").innerText = gstAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTotal").innerText = finalPrice.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("goldResult").style.display = "block";
}