Wednesday 16 April | Gold Rate Today in Chennai, 18, 22 & 24 Carat Gold Price Today

Formula for calculating the price of gold

Final price of gold item = price of gold per gram (purity in 18-24 carats) X (weight of gold you bought in grams) + making charges of jewellery + 3% GST (jewellery price + making charge)

How to calculate the price of gold?

Let's say you want to buy a chain of 10.5 gram of 22-carat gold purity. The jeweller you choose is priced at Rs. 88,150 for 10 grams of gold on a particular day. Making charges are 15% percent of the listed price. Therefore, the final price you need will be calculated as follows for the gold chain.

* Price of 10 grams of 22-carat gold = Rs. 88,150
* Price of 1 gram 22-carat gold = Rs. 88,150/10 = Rs. 8,815
* Price of 10.5 gram chain of 22-carat gold = Rs. 8,815 * 10.5 = Rs. 92,558
* Making charges added = 15% of 92,558 = Rs. 13,223

So, excluding all taxes, the final value of this gold chain = Rs. 92,558 + Rs. 13,223 = Rs. 105,780

* When you apply 3% GST on this total price, you will get 3% of Rs. 105,780 = Rs. 3,173
* Finally, the total cost of the chain after the tax is added is Rs. 105,780 + Rs. 3,173 = Rs. 108,953
* So, you will have to pay a total of Rs. 108,953 for the purchase of this jewellery

How do you calculate the price of gold per gram?

To calculate the price of gold per gram, two factors are considered: the current price of gold on that day and the purity of gold matters. Suppose the price of gold today is Rs.10,000 and the gold item is 22-carat gold, which has a purity of 91.6%, while according to the formula the price of gold is 10,000 x 0.916 x 1 = Rs.9160. Additional making charges and VAT will also be added after that.