This calculator helps you estimate the potential loan value you might receive from a pawn shop for your gold items. Pawn shops base their loan offers on a fraction of the item's melt value, factoring in their risk, operational costs, and profit margins. The loan offered is typically a percentage of the item's actual gold content value, not its retail or sentimental value.
How the Calculation Works:
The calculation involves several steps:
Determine Pure Gold Weight: We first calculate the actual weight of pure gold in your item. Gold purity is measured in karats (K).
24K is 99.9% pure gold.
22K is approximately 91.7% pure gold.
18K is 75.0% pure gold.
14K is 58.3% pure gold.
10K is 41.7% pure gold.
The formula is: Pure Gold Weight (grams) = Item Weight (grams) * (Karat / 24)
Calculate Base Gold Value: This is the current market value of the pure gold content in your item.
Base Gold Value = Pure Gold Weight (grams) * Spot Price (per gram)
Apply Pawn Shop Markup/Discount: Pawn shops do not lend the full market value. They offer a loan that is a percentage of the base gold value, accounting for their markup and the risk of not being repaid. A common range for this loan-to-value ratio is 25% to 50%, but pawn shops often express this as a percentage of the value they aim to profit from. This calculator uses a 'Pawn Shop Markup Percentage' which represents how much they aim to make *above* the loan amount, meaning the loan offered is 100% - Markup % of the base gold value. A higher markup means a lower loan offer.
Loan Offer = Base Gold Value * (1 - (Pawn Shop Markup Percentage / 100))
For example, if a pawn shop targets a 30% profit margin (markup), they would offer 70% of the base gold value as a loan.
Factors Influencing Pawn Value:
Gold Purity (Karat): Higher karat gold is worth more.
Gold Weight: More gold means higher value.
Current Market Price: The spot price of gold fluctuates daily.
Pawn Shop's Policy: Each shop has its own pricing and markup strategy. Some may offer slightly more for items with resale potential beyond melt value, but most focus on melt value for gold.
Item Condition (Limited): While primarily valued for its gold content, a pawn shop might slightly adjust an offer if the item is a highly desirable piece of jewelry that could be sold at a premium above melt value. However, for calculation purposes, we focus on the intrinsic gold value.
Disclaimer: This calculator provides an *estimate* only. Actual offers from pawn shops may vary significantly based on their individual policies, assessment of the item, and current market conditions.
function calculatePawnValue() {
var weightGrams = parseFloat(document.getElementById("goldWeightGrams").value);
var karat = parseInt(document.getElementById("goldKarat").value);
var spotPricePerGram = parseFloat(document.getElementById("spotPricePerGram").value);
var markupPercentage = parseFloat(document.getElementById("pawnShopMarkupPercentage").value);
var resultValueElement = document.getElementById("result-value");
var resultExplanationElement = document.getElementById("result-explanation");
// Input validation
if (isNaN(weightGrams) || weightGrams <= 0) {
resultValueElement.textContent = "Invalid";
resultExplanationElement.textContent = "Please enter a valid gold weight.";
return;
}
if (isNaN(spotPricePerGram) || spotPricePerGram <= 0) {
resultValueElement.textContent = "Invalid";
resultExplanationElement.textContent = "Please enter a valid spot price per gram.";
return;
}
if (isNaN(markupPercentage) || markupPercentage 100) {
resultValueElement.textContent = "Invalid";
resultExplanationElement.textContent = "Pawn shop markup must be between 0% and 100%.";
return;
}
// Calculation Steps
// 1. Determine Pure Gold Weight
var pureGoldWeight = weightGrams * (karat / 24);
// 2. Calculate Base Gold Value
var baseGoldValue = pureGoldWeight * spotPricePerGram;
// 3. Apply Pawn Shop Markup/Discount
// If markup is 30%, the pawn shop lends 100% – 30% = 70% of the base value.
var loanOfferPercentage = 1 – (markupPercentage / 100);
var estimatedPawnValue = baseGoldValue * loanOfferPercentage;
// Format and display result
resultValueElement.textContent = "$" + estimatedPawnValue.toFixed(2);
// Provide a brief explanation of the result
var explanationText = "Based on " + weightGrams.toFixed(2) + "g of " + karat + "K gold, with a spot price of $" + spotPricePerGram.toFixed(2) + "/g, and a pawn shop markup of " + markupPercentage + "%.";
resultExplanationElement.textContent = explanationText;
}