How to calculate Gold Rate in India

By Team Gullak

Apr 7, 2025

5 min read

Gold rate denotes the current gold price for every gram of Gold purchased. If you’re wondering, “How to calculate gold rate in India?”, use the calculator below:

Gold Price Calculator

Purity

Quantity (grams)

Gold rate calculator - Why you should use it and how it works

As the name suggests, the gold rate calculator helps you understand how to calculate gold rate. Using this calculator, you can calculate the current gold rate for 22 Karat gold and 24 Karat Gold for any gold quantity(in grams).

Benefits of the Gold rate calculator:

Accurate Gold rate calculation
Check if the place you are buying gold from is providing you gold at a higher or lower rate
Time saving: Easily get the current gold rate for any quantity of choice.

How does the Gold Rate Calculator work?

When using Gullak's Gold rate caclulator, you just need to input the Purity of Gold and gold grams. Upon providing the inputs and clicking on the "Calculate" button, you'll know how to calculate gold rate.

Benefits of a Gold rate calculator

A gold rate calculator massively eases up the process of how to calculate gold rate. With this calculator, you get the below benefits:

Accurate value of Gold: The Gold prices on Gullak's Gold rate calculator fetches the gold price from Augmont, Gullak's gold partner and one of India's biggest gold refineries. Hence, while calculating the value of gold, you are assured of accurate prices.
Different options: The Gold rate calculator provides you with options of 24K Gold and 22K Gold. 24K gold price helps people calculate the value of gold coins and digital gold which are closely tied to investments. 22K Gold, on the other hand is convenient to people who are trying to check the gold rate for jewellery buying purposes.
Saves time: The Gold rate calculator allows you to calculate the current gold rate within seconds. On the flip side, manually calculating the prices would take significant effort.

What's the Formula used in the Gold rate calculator?

With the Gold rate calculator, we have 2 major components:

Gold price: Current Gold price of 24K and 22K gold. The live prices are fetched from Augmont and get updated every 3 minutes.
Gold quantity: User needs to manually input the gold quantity you want to find the gold rate for

Formula used to calculate Gold rate: Gold Quantity * Gold Price.

How to calculate Gold Rate while buying Gold jewellery?

While calculating the current gold rate is more straightforward, finding out the gold rate of your jewellery becomes slightly tricky, due to some additional factors that come into play.

Additional components of Gold jewellery purchase:

Gold purity: Generally, gold jewellery comes in 3 types of purity – 14 Karat, 18 Karat and 22 Karat. Since 24Karat gold is extremely soft and malleable it is rarely used in jewellery.

Gold Rate: While there’s a fixed gold rate determined by IBJA(India Bullion and Jewellers Association), by the time the gold comes to the end user there are multiple parties like gold refineries and jewellers involved, who charge small commissions on top of gold price.

Making charges: These are charges levied by jewellers on top of the gold price. Raw gold from the refineries needs to be converted into jewellery before they are sold to the consumer. The labour charge involved behind this artistry is called making charge.

Taxes: On every gold purchase, there’s a one time 3% GST charge applicable on the gold price.

Stones attached: Modern jewellery also comes with designer stones that add up to the aesthetic of the ornament. It is important to remove the stone price while taking out the gold rate.

Additional cost: Other costs Hallmark charge(typically ₹35/ornament), wastage charge(gold wasted when converting gold to gold jewellery), service charges are also applied to the total price.

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How to calculate Gold Rate on jewellery?

Use the below formulas to calculate the gold price on your jewellery:

Total Gold price = Total jewellery price - (making charges + GST + wastage charges + Hall mark charges + stone price)

Once you have the Total Gold price, divide it by gold weight to arrive at the gold rate at which the jewellery is being sold i.e., Gold rate = Total gold price/gold weight

How to calculate Gold Rate on Digital Gold?

Unlike physical gold, digital gold doesn’t have as many components to the final price, hence it is easier to calculate the gold rate. Use the below formulas to accurately calculate the gold rate:

Total Gold price = Total price - GST
Gold rate per gram = Total gold price/gold weight

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Factors influencing the Gold rate

At its core, all the factors that influence gold price are tied to Demand and supply dynamics for the asset. In this section, we'll go through the major instances that lead to a change in this dynamic, in turn influencing the gold rates:

Inflation: Gold is historically seen as a safe-haven asset because of its consistent performance even during poor economic conditions. Hence, when the inflation of the country increases people flock towards assets like gold for stable returns, in turn driving the prices higher.
Interest rate changes: Lower interest rates make gold more attractive as an asset, driving its prices higher. On the flip side, higher interest rates lead to lower gold prices.
US dollar value: The dollar's value affects how much gold costs. When the dollar strengthens, gold prices tend to decrease, as it becomes relatively more expensive in other currencies. On the other hand, a weaker dollar leads to higher gold prices.
Central Banks purchases: Central banks purchasing tonnes of gold to hedge against falling dollar prices, lead to higher gold prices.
Wedding season(Specific to India): Due to cultural traditions, people buy huge amounts of gold every year during the wedding season. This increase in demand during the last quarter of the year leads to increased gold prices.
Gold's rarity: Gold is a rare metal. A study revealed that all the gold in the world can be fit into 3 Olympic size swimming pools and we have already mined gold that could fit into 2 of those pools. The limited quantity makes the asset extremely rare, in turn fuelling its everlasting value as an asset.

Conclusion

Using the above calculator and formulas, users can easily understand how to calculate gold rate for both physical and digital gold. This should be enough for investors to make educated choices when buying gold.

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