How to Calculate Gold Price

Gold Price Calculator

Use this calculator to estimate the total price of gold, factoring in weight, purity, current market rates, making charges, and applicable taxes.

24 Karat (99.9%) 22 Karat (91.67%) 18 Karat (75%) 14 Karat (58.3%) 10 Karat (41.7%)

function calculateGoldPrice() { var goldWeight = parseFloat(document.getElementById("goldWeight").value); var goldKarat = parseFloat(document.getElementById("goldKarat").value); var marketPricePerGram = parseFloat(document.getElementById("marketPricePerGram").value); var makingChargesPercentage = parseFloat(document.getElementById("makingChargesPercentage").value); var gstPercentage = parseFloat(document.getElementById("gstPercentage").value); // Input validation if (isNaN(goldWeight) || goldWeight <= 0) { document.getElementById("goldPriceResult").innerHTML = "Please enter a valid Gold Weight."; return; } if (isNaN(goldKarat) || goldKarat <= 0) { document.getElementById("goldPriceResult").innerHTML = "Please select a valid Gold Purity."; return; } if (isNaN(marketPricePerGram) || marketPricePerGram <= 0) { document.getElementById("goldPriceResult").innerHTML = "Please enter a valid Market Price per Gram."; return; } if (isNaN(makingChargesPercentage) || makingChargesPercentage < 0) { document.getElementById("goldPriceResult").innerHTML = "Please enter a valid Making Charges percentage."; return; } if (isNaN(gstPercentage) || gstPercentage < 0) { document.getElementById("goldPriceResult").innerHTML = "Please enter a valid GST/VAT percentage."; return; } // 1. Convert Karat to Purity Percentage var purityFactor = goldKarat / 24; // e.g., 22/24 = 0.91666… // 2. Calculate Pure Gold Weight var pureGoldWeight = goldWeight * purityFactor; // 3. Calculate Base Gold Value var baseGoldValue = pureGoldWeight * marketPricePerGram; // 4. Calculate Making Charges var makingChargesAmount = baseGoldValue * (makingChargesPercentage / 100); // 5. Calculate Subtotal (Gold + Making Charges) var subtotal = baseGoldValue + makingChargesAmount; // 6. Calculate GST/VAT var gstAmount = subtotal * (gstPercentage / 100); // 7. Calculate Total Price var totalGoldPrice = subtotal + gstAmount; // Display results var resultHTML = "

Estimated Gold Price Details:

"; resultHTML += "Gold Weight: " + goldWeight.toFixed(2) + " grams"; resultHTML += "Purity: " + goldKarat + " Karat (" + (purityFactor * 100).toFixed(2) + "%)"; resultHTML += "Market Price (Pure Gold): $" + marketPricePerGram.toFixed(2) + " per gram"; resultHTML += "Pure Gold Content: " + pureGoldWeight.toFixed(2) + " grams"; resultHTML += "Base Gold Value: $" + baseGoldValue.toFixed(2) + ""; resultHTML += "Making Charges (" + makingChargesPercentage.toFixed(1) + "%): $" + makingChargesAmount.toFixed(2) + ""; resultHTML += "Subtotal (Gold + Making Charges): $" + subtotal.toFixed(2) + ""; resultHTML += "GST/VAT (" + gstPercentage.toFixed(1) + "%): $" + gstAmount.toFixed(2) + ""; resultHTML += "Total Estimated Gold Price: $" + totalGoldPrice.toFixed(2) + ""; document.getElementById("goldPriceResult").innerHTML = resultHTML; }

Understanding Gold Price Calculation

Calculating the true price of gold, especially when purchasing jewelry, involves more than just looking at the current market rate. Several factors contribute to the final cost, including the gold's weight, its purity (karat), prevailing market prices, making charges, and applicable taxes like GST or VAT.

Key Factors in Gold Pricing:

1. Gold Weight: This is the most fundamental factor. Gold is typically weighed in grams, troy ounces, or tolas. The heavier the item, the more gold it contains, and thus, the higher its base value.
2. Gold Purity (Karat): Gold purity is measured in karats (K). Pure gold is 24 Karat (24K), meaning it's 99.9% pure. However, pure gold is very soft, so it's often alloyed with other metals (like copper, silver, or zinc) to increase its durability and create different colors. Common purities for jewelry include:
   • 24 Karat (99.9% pure): The purest form, often used for coins, bars, and investments.
   • 22 Karat (91.67% pure): Contains 22 parts gold and 2 parts other metals. Popular for traditional jewelry due to its balance of purity and durability.
   • 18 Karat (75% pure): Contains 18 parts gold and 6 parts other metals. Offers greater durability and is common for diamond-studded jewelry.
   • 14 Karat (58.3% pure): Contains 14 parts gold and 10 parts other metals. Even more durable, often used for everyday wear.
   The lower the karat, the less pure gold an item contains, and consequently, its base value will be lower for the same weight.
3. Current Market Price of Pure Gold: This is the fluctuating price of 24K gold in the international and local markets. It's usually quoted per gram or per troy ounce and is influenced by global economic conditions, supply and demand, currency fluctuations, and geopolitical events.
4. Making Charges (Workmanship/Labor Charges): When you buy gold jewelry, you're not just paying for the gold itself. Jewelers charge for the design, craftsmanship, and labor involved in creating the piece. These "making charges" can be a fixed amount per gram or, more commonly, a percentage of the gold's value. Intricate designs usually incur higher making charges.
5. GST/VAT (Goods and Services Tax / Value Added Tax): Most countries levy a tax on the sale of goods, including gold. This tax is typically a percentage of the total value (gold value + making charges) and is added to the final price.

How the Calculator Works:

Our Gold Price Calculator simplifies this complex process by breaking it down into logical steps:

1. It takes the total weight of your gold item and its purity (Karat) to determine the actual weight of pure gold content.
2. This pure gold content is then multiplied by the current market price of pure gold per gram to arrive at the base value of the gold.
3. Next, it calculates the making charges based on the percentage you input.
4. These making charges are added to the base gold value to get a subtotal.
5. Finally, the applicable GST/VAT percentage is applied to this subtotal to determine the tax amount, which is then added to arrive at the total estimated gold price.

Example Calculation:

Let's say you want to buy a 10-gram 22 Karat gold chain. The current market price for 24K gold is $65.00 per gram, making charges are 10%, and GST is 3%.

• Gold Weight: 10 grams
• Gold Purity: 22 Karat (91.67% pure)
• Market Price (24K): $65.00/gram
• Making Charges: 10%
• GST: 3%

Here's how the calculation would proceed:

1. Purity Factor: 22 / 24 = 0.9167
2. Pure Gold Content: 10 grams * 0.9167 = 9.167 grams
3. Base Gold Value: 9.167 grams * $65.00/gram = $595.86
4. Making Charges: 10% of $595.86 = $59.59
5. Subtotal (Gold + Making Charges): $595.86 + $59.59 = $655.45
6. GST (3% of Subtotal): 3% of $655.45 = $19.66
7. Total Estimated Price: $655.45 + $19.66 = $675.11

This calculator provides a clear breakdown, helping you understand each component of the gold's final price.