Gold Profit/Loss Calculator
The honest return on gold, after the costs most calculators ignore: making charges, GST at purchase, and the deduction a jeweller applies when buying it back.
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How to use this calculator
- Enter purchase price per gram
- Enter quantity
- Enter selling price per gram — Today's rate. You enter this — no live prices are used.
- Enter making charges — Typically 8–25% on jewellery, near zero on coins and bars. (optional — leave it as it is if it does not apply)
- Enter gst paid at purchase (optional — leave it as it is if it does not apply)
- Enter buy-back deduction — What the jeweller deducts for purity testing or refining when you sell. (optional — leave it as it is if it does not apply)
- Enter years held
- Read the result — it updates as you type.
The formula used
Cost = (Price×g) + Making + GST · Receive = (Sale price×g) − Deduction · Profit = Receive − Cost
- g
- Grams of gold
- Making
- Gold value × making charge %
- GST
- (Gold value + making) × GST %
GST is charged on the gold and the making charges together, which is why the GST figure is slightly higher than 3% of the gold value alone.
Making charges and GST are sunk costs — they are never recovered at sale. That is the single most important fact about buying gold jewellery as an investment.
Worked example
20 grams bought at ₹5,500/g with 12% making charges and 3% GST, sold five years later at ₹7,200/g.
- Gold value20 × ₹5,500 = ₹1,10,000
- Making charges12% = ₹13,200
- GST3% of ₹1,23,200 = ₹3,696
- Total paid = ₹1,26,896
- Sale value = 20 × ₹7,200 = ₹1,44,000
- Profit = ₹1,44,000 − ₹1,26,896 = ₹17,104
- Return = 13.48%, annualised = 2.56% a year
The gold price rose 30.9%, but the actual return was 13.5% — the making charges and GST absorbed more than half the gain.
Jewellery, coins, or paper gold?
The metal performs the same whichever way you own it. What differs is how much of the price rise you keep.
The cost of each route
- Jewellery — 8–25% making charges plus 3% GST, and often a deduction at buy-back. Buy it to wear, not to invest.
- Coins and bars — a small premium plus 3% GST. Far better, but storage and insurance are your problem.
- Gold ETFs and funds — no making charges; a small annual expense ratio instead. Easy to buy and sell.
- Sovereign Gold Bonds — track the gold price and pay a small yearly interest on top, with a fixed maturity.
Set the charges honestly
For coins and bars, set making charges near zero. For jewellery, use the actual percentage on your invoice — many people are surprised how high it was.
Tips and common mistakes
Getting more out of it
- Find the making charge percentage on your original invoice — guessing it low flatters the result substantially.
- For coins, bars or ETFs, set making charges near zero and see how much better the same price move looks.
Mistakes to avoid
- Leaving making charges out because they feel like a past expense. They are the main reason jewellery underperforms the gold price.
- Assuming GST is recoverable. For an individual buyer it is a cost.
- Comparing the result with a fixed deposit without checking the annualised figure rather than the total.
Frequently asked questions
Do you use live gold prices?
No. Both prices are typed in by you. This site does not connect to any market data feed.
Are making charges refundable when I sell?
No. They pay for the craftsmanship, not the metal, and jewellers do not return them. Some offer a partial credit when exchanging for new jewellery from the same shop.
Can I claim back the GST?
Not as an individual buyer. GST paid on jewellery is a cost, and it is part of why the effective return is lower than the price rise.
What buy-back deduction should I expect?
It varies by jeweller and by whether you are exchanging or selling for cash. Ask before buying — a shop that deducts nothing on its own hallmarked pieces is worth preferring.
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