How to calculate gold price step by step
Calculating the price of gold is simple arithmetic once you know which four numbers matter: the weight, the karat, the making charges and the tax. The calculator above handles all of it, but it is worth understanding what it is doing so you can check any quote you are given.
Step 1 — Convert the weight to grams
Gold rates are published per gram, per 10 grams, per tola or per troy ounce depending on the market. Everything reduces to grams:
- 1 tola = 11.6638 grams
- 1 troy ounce = 31.1035 grams
- 1 kilogram = 1,000 grams
Step 2 — Apply the karat rate
Multiply the weight in grams by the per-gram rate for your karat. That gives the metal value — the raw worth of the gold itself, before anyone has shaped it into anything.
Step 3 — Add making charges
Making charges (banwai) are the jeweller's fee for craftsmanship, quoted per gram. This is where two shops quoting the identical gold rate produce very different final prices.
Step 4 — Add wastage, if the jeweller applies it
Some jewellers add a wastage percentage — typically 3% to 8% — to account for metal lost during manufacture. Not every shop charges it, and it is negotiable.
Step 5 — Apply tax
Tax is applied to the subtotal, and the rate depends on your jurisdiction and the nature of the transaction. Set it to match your local rate in the field above.
The formula in one line:
(Weight in grams × per-gram karat rate) + wastage + (weight × making charge per gram), then tax on
the subtotal.
How to calculate the 22K gold price from the 24K rate
This is the single most common question, and the answer is a straight multiplication. Karat measures purity out of 24 parts, so each grade is a fixed fraction of the 24K price:
- 24K — 100.0% pure, hallmark 999.9, priced at 1.000 × the 24K rate
- 22K — 91.7% pure, hallmark 916, priced at 0.917 × the 24K rate
- 21K — 87.5% pure, hallmark 875, priced at 0.875 × the 24K rate
- 20K — 83.3% pure, hallmark 833, priced at 0.833 × the 24K rate
- 18K — 75.0% pure, hallmark 750, priced at 0.750 × the 24K rate
So if 24K gold is 10,000 per gram, 22K is 9,160 and 18K is 7,500. The calculator applies these ratios automatically to whichever market you select — you never need to do it by hand.
Which countries this calculator supports
Selecting a country switches both the live rate and the currency, so figures are never displayed in the wrong denomination. Prices are taken from that market's benchmark city, so the local premium is already included.
- 🇵🇰 Pakistan — priced in PKR (Rs), benchmarked on Karachi
- 🇮🇳 India — priced in INR (₹), benchmarked on Mumbai
- 🇸🇦 Saudi Arabia — priced in SAR (﷼), benchmarked on Riyadh
- 🇦🇪 United Arab Emirates — priced in AED (د.إ), benchmarked on Dubai
- 🇶🇦 Qatar — priced in QAR (ر.ق), benchmarked on Doha
- 🇴🇲 Oman — priced in OMR (ر.ع.), benchmarked on Muscat
- 🇰🇼 Kuwait — priced in KWD (د.ك), benchmarked on Kuwait City
- 🇧🇭 Bahrain — priced in BHD (ب.د), benchmarked on Manama
- 🇬🇧 United Kingdom — priced in GBP (£), benchmarked on London
- 🇺🇸 United States — priced in USD ($), benchmarked on New York
- 🇨🇦 Canada — priced in CAD (CA$), benchmarked on Toronto
- 🇦🇺 Australia — priced in AUD (AU$), benchmarked on Sydney
What makes a gold jewellery quote higher than the gold rate
Buyers are often surprised that a published gold price today and the number on the invoice are so far apart. The gap is entirely explainable:
- Making charges. Machine-made chains and plain bangles sit at the low end. Hand-crafted, filigree, temple and stone-set work sits far higher, because the labour is genuinely greater.
- Wastage. A percentage added for metal lost in manufacture. Always ask whether it is included before comparing two quotes.
- Stone and design premiums. Diamonds, gemstones and enamel are priced separately and are not part of the gold weight at all.
- Tax. Applied on the full subtotal, not just the metal.
- The dealer's own margin. Retail is a business; the counter price is not the bullion price.
Comparing two shops properly. Ask each for three numbers separately: the gold rate per gram, the making charge per gram, and the wastage percentage. A shop advertising a "discount on making" while quoting a higher gold rate can easily be the more expensive of the two. Enter both into the calculator and compare the totals.
Using the calculator to value gold you want to sell
Set making charges, wastage and tax all to zero. What remains is the pure metal value of the piece. Two adjustments then apply in the real world:
- Dealers buy at the bidding price, not the asking price. The gap between them is the dealer's margin, so expect an offer slightly below the rate shown.
- Non-gold weight is deducted. Stones, solder and alloy are removed from the weight before valuation. In South Asian markets this deduction is quoted in ratti per masha, and it should be shown to you separately.
Check the live bidding and asking figures on your city page before negotiating — for example the Karachi gold rate or the Lahore gold rate.
Worked example
A 10 gram 22K chain in Pakistan, with making charges of Rs 500 per gram and 3% tax:
- Metal value: 10 g × Rs 36,909 = Rs 369,093
- Making charges: 10 g × Rs 500 = Rs 5,000
- Subtotal: Rs 374,093
- Tax at 3%: Rs 11,223
- Total payable: Rs 385,315
Note that the metal is only part of the story — making charges and tax add materially to the final figure. These numbers update with the live rate, so the example above reflects today's market.
Print a quotation
The Print Quotation button produces a clean A4 estimate showing the weight, karat, metal value, wastage, making charges, tax and total, along with the market and currency used. Take it to a jeweller as a reference point — having the arithmetic written down changes the conversation.