How to calculate the price of gold jewellery

The formula

Jewellery price = (gold rate per gram x weight) + making charges + wastage + stone charges, and then GST is added on the total.

Use the rate for the karat of the piece: the 22K rate for most Indian jewellery, 18K for diamond pieces. Today's rates are on the gold rate page.

A worked example

This example uses round numbers only to show the steps. Use today's live rate for a real price. A 10 gram 22K chain, rate Rs 12,000 per gram, making charges 10%:

• Gold value: 10 g x Rs 12,000 = Rs 1,20,000
• Making charges: 10% of gold value = Rs 12,000
• Subtotal: Rs 1,32,000
• GST at 3%: Rs 3,960
• Final price: Rs 1,35,960

What each part means

Making charges pay for the craftsmanship. They are quoted either as a percentage of the gold value or as a fixed amount per gram. Wastage is the gold lost in shaping the piece, and some jewellers charge it separately. Stone charges cover diamonds or gems and are priced separately from the gold.

GST on gold jewellery is 3% on the total value. Ask for each line to be shown separately on the bill.

How to check a quote

Ask for the rate used, the net weight (without stones), the making charge basis, and the GST line. If two shops quote different totals, compare these lines one by one instead of only the final number.

Questions