Home
Back
Gold Price Formula:
| From: | To: |
The gold price calculation formula estimates the total cost of gold jewelry based on weight, purity, current spot price, and making charges. This is the standard method used by jewelers across India to price gold items.
The calculator uses the gold price formula:
Where:
Explanation: The formula calculates the pure gold content based on purity, multiplies by the current market rate, and adds making charges to determine the final price.
Details: Accurate gold price calculation helps consumers understand jewelry pricing, compare prices across jewelers, and make informed purchasing decisions in the Indian gold market.
Tips: Enter weight in grams, select purity in karats, input current gold rate per gram in INR, and making charges. All values must be positive numbers.
Q1: Why is purity divided by 24 in the formula?
A: 24 karat represents pure gold. Dividing by 24 calculates the percentage of pure gold in the jewelry (e.g., 22K gold contains 22/24 = 91.67% pure gold).
Q2: What are typical making charges in India?
A: Making charges vary widely (₹150-₹500+ per gram) based on design complexity, jeweler, and type of jewelry. Simple designs have lower making charges.
Q3: How often does spot price change?
A: Gold prices change continuously throughout the day based on international markets. Major updates typically occur twice daily in India.
Q4: Is GST included in this calculation?
A: This calculator shows the base price before GST. A 3% GST is typically added to the final jewelry price in India.
Q5: Why do different jewelers have different prices for similar jewelry?
A: Price variations occur due to differences in making charges, brand value, gold sourcing, and business overhead costs.