Gold Value by Karat Calculator: What Is My 22K or 18K Gold Worth?
Table of Contents
Somewhere in most Indian homes sits a bangle, a chain, or a pair of earrings whose current worth nobody has worked out. A 22k gold value calculator answers that in seconds, and the arithmetic behind it takes barely longer by hand: weight in grams × purity percentage × the current 24-carat rate per gram. 22 carat gold is 91.6 per cent pure, while 18 carat gold is 75 per cent pure. To get the purchase price, add 3% GST on the gold value, and remember that when gold is pledged, only the metal value is taken into consideration, not the making charges. Anyone asking what is my gold worth will find the full answer here: the formula, a karat purity table, step-by-step worked examples for 22K and 18K, the extra charges that shape what a buyer pays or a seller receives, and how the same value converts into a gold loan amount.
How to Calculate Gold Value by Karat: The Formula
One line does the whole job.
Gold Value (INR) = Weight in grams × Purity % × Current 24K rate per gram
Purity is what karat actually measures. Pure gold is 24 karats, so every lower karat is a fraction of that. The standard figures: 24K is 99.9% pure, 22K is 91.6%, 18K is 75%, and 14K is 58.3%.
Run one quick example. Ten grams of 22-carat gold, with the 24-carat rate taken at ₹14,000 per gram as a working number, comes to 10 × 0.916 × 14,000 = ₹1,28,240. That is the metal value alone. GST and making charges sit on top of it at purchase, and neither figures in a resale or a pledge. The gold per gram formula stays the same whatever the karat; only the purity factor changes.
Karat Purity Reference Table
The table below covers the four karats common in India, with the gold karat chart purity each represents and where it usually appears.
|
Karat |
Purity % |
Common Use |
|
24K |
99.9% |
Coins and bars |
|
22K |
91.6% |
Most Indian jewellery |
|
18K |
75% |
Diamond-set jewellery |
|
14K |
58.3% |
Fashion jewellery |
Note: Purity percentages are standard karat-to-fineness conversions and are indicative of typical market usage. The hallmarked purity of any specific piece is shown on its BIS stamp.
What Is My 22K Gold Worth? A Step-by-Step Example
Take a 22-carat bangle weighing 15 grams and walk it through end to end.
Find the day's 24-carat rate per gram. Assume ₹14,000 as an illustration; the live rate on the day is what actually applies.
Apply the 22K purity factor: 14,000 × 0.916 = ₹12,824 per gram for 22-carat.
Multiply by weight: 15 × 12,824 = ₹1,92,360. That is the metal value of the bangle.
Add 3% GST on the gold value if buying: ₹1,92,360 × 1.03 = ₹1,98,131.
If you are buying jewellery, add making charges, which is usually between 8% and 25% of the metal value depending on the jeweller and the design. There is also 5% GST on the making component. That is 12%. That adds about Rs 23,083 in charges and about Rs 1,154 in GST on them and brings the final bill close to Rs 2,22,400.
Selling or pledging reverses the picture. Steps 4 and 5 vanish, and the ₹1,92,360 metal value is the figure that matters. The 22k gold price per gram india jewellers display already builds in the 91.6% purity, so quoted 22K rates can be applied straight to weight.
What Is My 18K Gold Worth? How It Differs from 22K
Same bangle weight, different metal content. 18 carat gold is 75 % pure, meaning at first glance it has a quarter less gold than the karat number would suggest. In other words, if 24 carat gold is priced at ₹14,000 a gram, then the 18K rate is 14,000 x 0.75 = ₹10,500 a gram. So, a 15-gram piece has ₹1,57,500 worth of metal, as against ₹1,92,360 for its 22-carat twin.
That gap of roughly 22% is constant whatever the prevailing rate, because it comes from the purity arithmetic (91.6 ÷ 75), not from the market. The 22k vs 18k gold value difference is simply gold content. 18K earns its place in diamond-set and stone-heavy pieces, where the harder alloy grips stones better and the lower gold content keeps the base price down. For anyone valuing 18k gold value india pieces at home, the method is identical; only the 0.75 factor changes.
What Affects the Final Price Paid or Received?
Three components sit beyond the base metal value, and they behave very differently depending on which side of the counter one stands.
GST. 3% on the metal and a further 5% on the making component, both at purchase. The gst on gold applies when buying; it plays no part when selling or pledging.
Making charges. Generally in the 8% to 25% range of the gold's worth, rising with design complexity. This is the making charges gold buyers pay for craftsmanship, and it is often negotiable.
Wastage. Some jewellers add 5% to 12% for metal lost during crafting, a practice that varies widely and deserves a direct question before billing.
The asymmetry is the point to hold on to. Every one of these gold price components is a one-way cost. When the same piece is later sold or pledged, only the metal is valued; GST, making charges, and wastage are gone. So the amount recoverable from jewellery is always lower than the bill once paid for it, sometimes by a quarter or more.
Using Gold Value to Apply for a Gold Loan
Lenders start from the same formula, applied strictly. The net gold weight is measured after excluding stones, and purity is verified at assessment with the borrower present. Under RBI directions, the metal is valued at the previous day's close or the trailing 30-day average, whichever is lower, per the benchmark rates that IBJA or a SEBI-recognised exchange releases, with the reference rate applied according to the assessed purity of the gold. Tiered loan-to-value limits then follow (effective 1 April 2026): up to 85% of value on loans within ₹2.5 lakh, 80% in the ₹2.5 lakh to ₹5 lakh band, and 75% beyond it.
Put numbers on it. If 22-carat jewellery is assessed at ₹1,30,000, the loan falls in the first tier and the eligible amount may go up to about ₹1,10,500, subject to the lender's policy and verification. An indicative figure for gold loan eligibility can be checked with the IIFL Finance gold loan calculator using weight and purity, before any visit to a branch. The gold loan per gram a borrower actually receives always traces back to the karat formula on this page.
Conclusion
Weight, purity, rate. Those three numbers settle what any piece of gold is worth, and the karat table converts between them in one step. The 22-carat and 18-carat worked examples show how far apart two identical-looking bangles can sit in value, and why the price paid at a showroom is always higher than the amount the same piece fetches later, since GST, making charges, and wastage never come back. When funds are needed without parting with the jewellery, that metal value may support a gold loan, sized on the verified market price and the applicable LTV tier, subject to eligibility and lender policy. Every figure used here is illustrative; actual values, charges, and loan amounts rest on the day's rate, the assessed purity, and the rules in force when the application is made.
Frequently Asked Questions
How do I calculate the value of my 22K gold?
Multiply the weight in grams by 0.916 and then by the current 24-carat rate per gram. For a purchase price, add 3% GST to the result. So 10 grams of 22-carat gold at 24-carat rate of ₹14,000 per gram works out to 10 x 0.916 x 14,000 = ₹1,28,240 before GST. The same sum excluding GST is the value relevant for selling or pledging. The rate on the day matters, as even a small per gram move shifts the total noticeably on heavier pieces.
What is the difference between 22K and 18K gold value?
Purity and nothing else. 22-carat gold is 91.6% pure, while 18-carat is 75%, so for the same weight, 22K is worth about 22% more. 18K is mostly found in diamond-set jewellery, where the lower gold content keeps the base price down, and the harder alloy holds stones more securely. It derives from the purity of arithmetic. The percentage gap remains the same regardless of the market rate. Stamps say 916 for 22K and 750 for 18K. A hallmark test determines what karat a piece truly is.
Does GST apply to gold jewellery in India?
Yes, at purchase. GST lands at 3% on the metal value plus 5% on the making charges, with both components printed on the bill when buying jewellery. Selling or pledging is different: GST plays no role there, and only the metal value is assessed. This is one reason the recoverable value of jewellery sits below its purchase price. Keeping the original bill is still worthwhile, since it records the karat and weight, which speeds up any later valuation or pledge.
How much loan can I get against my gold?
It depends on the assessed value and the loan size. RBI’s tiered caps, which has been in place since 1 April 2026, allow up to 85 per cent of the value of the gold where the loan is within ₹2.5 lakh, 80 per cent in the ₹2.5 lakh to ₹5 lakh band and 75 per cent beyond that. So, 22-carat gold worth ₹1,00,000 can support a loan up to ₹85,000, depending on the lender’s policy and verification. Valuation is for net gold weight only, stones and alloys not included. Valuation is based on IBJA published benchmark rates, using the lower of the previous day’s rate or the trailing 30 day average.
Are making charges included in a gold loan valuation?
No. A lender assesses only the pure metal content of the pledged piece: net weight after removing stones, verified purity, and the prevailing benchmark price. Making charges, wastage, and stone value all fall outside the calculation, which is why the loan amount is typically lower than the jewellery's original purchase price. Plain, heavy pieces such as bangles and chains therefore convert to credit more efficiently than ornate, stone-set designs of the same bill value. The assay happens with the borrower present, and the certificate itemises the deductions.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
