Find the exact value of your gold by weight and purity — then add making charges and 3% GST to see the full jeweller's price.
How gold value is calculated
The value of gold depends on just two things: how much it weighs and how pure it is. Jewellers quote a single rate — the price per gram of pure 24K gold — and then scale it by the purity factor of your item:
Gold value = grams × (24K rate per gram) × (purity ÷ 24)
So 22K gold is valued at 22/24 (about 91.6%) of the 24K rate, and 18K at 18/24 (75%). Making charges and 3% GST are then added on top to reach the final bill.
Worked example: 10 g of 22K gold
At a 24K rate of ₹13,124/g, ten grams of 22K gold is worth ₹1,20,303. Add a 10% making charge of ₹12,030 and 3% GST of ₹3,970 on the combined value, and the total payable is ₹1,36,304. That gap between the raw gold value and the bill is why jewellery costs more per gram than coins.
Purity: carat vs hallmark
Carat (K) tells you how many of 24 parts are pure gold: 24K is 99.9% pure, 22K is 91.6%, 18K is 75% and 14K is 58.3%. The BIS hallmark stamps the same thing as a three-digit number — 999 for 24K, 916 for 22K, 750 for 18K. Always buy hallmarked gold so the purity you pay for is certified, not assumed.
Making charges and why the jeweller’s price differs
The quoted gold rate is for pure metal only. Your bill adds the jeweller's making charge (8–25% for ornaments, near zero for coins and bars), then 3% GST on the gold-plus-making value, and occasionally hallmarking or wastage fees. Plain designs and bullion minimise these extras; intricate jewellery maximises them. Making charges are usually the most negotiable line on the bill.
Gold as an investment
Physical gold carries those making and GST costs on the way in and a deduction for impurity on the way out, so it is a less efficient store of value than it looks. For pure exposure, many investors prefer sovereign gold bonds or gold ETFs, which avoid making charges. If your goal is wealth-building rather than ornaments, compare with an equity SIP or a tax-free PPF. Rate as of 2026-06-15.
Frequently Asked Questions
How is the value of gold calculated?
Gold value = weight in grams × purity factor × the rate per gram of pure (24K) gold. For 22K the purity factor is 22/24 (≈0.9167), for 18K it is 18/24 (0.75). So 10 g of 22K at a 24K rate of ₹7,000/g is worth 10 × 7000 × 0.9167 ≈ ₹64,167. The calculator applies this exactly; making charges and GST are added on top.
What is the difference between carat and hallmark purity?
Carat (K) measures how much of the metal is pure gold out of 24 parts: 24K is 99.9% pure, 22K is 91.6%, 18K is 75%. The BIS hallmark stamps this as a number — 916 means 22K, 750 means 18K, 999 means 24K. Always buy hallmarked gold so the purity you pay for is certified.
What are making charges on gold jewellery?
Making charges are the jeweller's fee for crafting the ornament, quoted either as a percentage of the gold value (commonly 8–25%) or as a flat ₹ per gram. Intricate designs cost more; plain coins and bars carry little or none. Use the making-charge field above to see how much it adds — it is often the most negotiable part of the bill.
How much GST is charged on gold?
GST on gold is 3% on the value of the gold plus making charges. (Making charges were earlier taxed separately at 5%; the common practice now is 3% on the combined value — confirm on your invoice.) The calculator shows the 3% GST as a separate line so you can see the all-in price.
Why is the jeweller’s price higher than the gold rate?
The quoted gold rate is for pure metal only. Your final bill adds making charges (the craftsmanship fee), 3% GST, and sometimes hallmarking and wastage charges. On a 22K ornament these extras can lift the price 10–25% above the raw gold value — which is exactly why coins and bars are cheaper per gram than jewellery.
Should I use 24K or 22K rate for jewellery?
Jewellery is almost always 22K (or 18K for studded pieces) because pure 24K gold is too soft to hold a setting. Jewellers, though, quote and price against the 24K rate and then apply the purity factor. Enter today's 24K rate above and pick the purity of your piece — the calculator does the conversion.
Where do I find today’s gold rate?
Daily 24K and 22K rates are published by city by sources like the India Bullion and Jewellers Association (IBJA) and most jewellers' websites. City rates differ slightly because of local taxes and demand. Enter today's 24K rate per gram in the field above for an exact value.
Estimates are for information and education only — not financial, tax or investment advice. Verify current rates and rules with official sources.