This tool works out the final price of a piece of gold from four inputs: karat, weight, making charge and tax rate. Knowing the steps behind the number helps you spot any inflated quote.
How the price is calculated, step by step
- Gold value = weight in grams × the gram price of the chosen karat in your country.
- Making charge = weight × making charge per gram.
- VAT = (gold value + making charge) × VAT rate.
- Total = gold value + making charge + VAT.
Karat and purity
Karat measures purity in parts of 24, so the price per gram falls as the karat falls.
| Karat | Pure gold content |
|---|---|
| 24 | about 99.9% |
| 22 | 91.7% |
| 21 | 87.5% |
| 18 | 75% |
| 14 | 58.3% |
For more detail, read gold karats explained.
A worked example (illustrative)
The numbers below are round figures for explanation only; they are not today's price. Suppose a gram of 24K costs 4,800 currency units. A gram of 21K is then about 4,800 × 21 ÷ 24 = 4,200 units. We buy 10 grams with a making charge of 200 units per gram and 10% VAT:
| Item | Calculation | Result |
|---|---|---|
| Gold value | 10 × 4,200 | 42,000 |
| Making charge | 10 × 200 | 2,000 |
| VAT | (42,000 + 2,000) × 10% | 4,400 |
| Total | 42,000 + 2,000 + 4,400 | 48,400 |
Here the making charge is only about 4% of the total, but it is higher on small, light pieces, and it is the part you do not get back when you sell.
Assumptions and limits
- The gram price used is the local selling price for the chosen karat; what a jeweler pays you is lower.
- The weight entered should be net gold weight, without stones.
- VAT is applied to the gold and the making charge together. If your country taxes only the making charge, use the equivalent rate: VAT rate × making charge ÷ (gold + making charge).
- Prices are indicative, refreshed about every minute, and may differ slightly from a shop's own board.
- The result excludes shipping, insurance and any negotiated discount.
To see why prices differ, read how gold prices are calculated; to negotiate the fee, see the making charge guide. You can also compare gold prices in Egypt with other countries, and work out your zakat on gold if you hold it as savings.
Frequently asked questions
Does the calculator include the price of stones or gems?
No. Enter the weight of the gold alone, after removing the stones, and add the stones' value yourself, because they are priced separately from the metal.
Is the making charge per gram or for the whole piece?
The calculator assumes a fixed making charge per gram. If the seller quotes one price for the whole piece, divide it by the weight before entering it.
Why does a shop's quote differ from the calculator's result?
A shop may add its own margin or extra fees, and gram prices move during the day. The result is an estimate for comparison, not an offer to sell.
Do I get the making charge and VAT back when I sell?
Usually not. A jeweler buys used gold by weight and karat at a buying price below the selling price, so the making charge is normally not recovered.
Which karat should I choose for saving?
A higher karat means purer gold and less alloy. Bars and coins usually carry a lower making charge than jewelry, so ask about the difference before you buy.