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Transparent calculation notes for Gold Profit Calculator.
Formula used
Gold investment profit
Profit = sale value - (gold value + making charges + GST)
The calculator adds making charges and GST to the gold value to get the total cost, then compares it with the sale value.
Methodology
- Calculate the gold value from buy price and quantity.
- Add making charges and GST to get the total cost.
- Calculate the sale value from the sell price and quantity.
- Subtract the total cost from the sale value; the total return is profit divided by total cost.
- Annualise the return (CAGR) over the months held, for holdings of 12 months or more.
- Estimate long-term capital gains tax at 12.5% plus 4% cess on a long-term gain, with the long-term test for how the gold was held.
Core assumptions
- Entered buy and sell prices are comparable for the same purity and weight unit.
- GST at 3% applies to the gold value plus making charges (composite supply) unless 'Goldsmith made it from my gold (job work)' is chosen.
- Costs entered represent recoverable or non-recoverable transaction costs as intended.
- Holding period is entered in whole months; the long-term test uses 'more than 24 months' for physical gold and gold funds and 'more than 12 months' for listed ETFs and exchange-bought SGBs.
Not included
- The tax estimate is before any unused basic-exemption limit and leaves out surcharge; a short-term gain is taxed at your slab rate, which the calculator does not estimate.
- Dealer spreads, making-charge recovery, purity disputes, and liquidity discounts are excluded unless entered.
- Jewelry resale value may differ significantly from metal value.
About Gold Profit Calculator
Guide1Calculate Your Gold Investment Returns
The Gold Profit Calculator estimates your profit or loss on physical gold (jewellery, coins, bars) after making charges and GST. It compares what the gold cost you in total with what a buyer pays for it now. For gold ETFs, gold funds and SGBs there is no making charge or GST; set both to 0%. Brokerage and platform spreads are not included.
Gold has historically been a strong performer in India due to the combined effect of global gold price appreciation and rupee depreciation against the US dollar.
2How Gold Profit is Calculated
Total cost = gold value + making charges + GST
- Gold value: buy price per gram × grams
- Making charges: the making-charge percentage × gold value
- GST: 3% of (gold value + making charges) for ready-made jewellery, coins and bars. For job work on your own gold, the GST paid on the gold plus 5% of the making charge
Sale value = sell price per gram × grams. Profit = sale value − total cost.
Total return = profit ÷ total cost × 100
3How to Use This Gold Profit Calculator
- Step 1: Enter the purchase price per gram and the weight of gold bought
- Step 2: Enter the making-charge percentage and GST from your bill
- Step 3: Enter the selling price per gram, how long you held the gold and how (physical gold, an ETF, a gold fund or an SGB)
- Step 4: View the profit, the total return, the annualised return (CAGR) for holdings of a year or more, and the tax type
4Tax Rules on Gold Profits in India
- Physical gold, jewellery and digital gold: Long-term if you held the gold for more than 24 months: taxed at 12.5% without indexation, plus surcharge and 4% cess. Held for 24 months or less: the gain is added to your income and taxed at your slab rate.
- Gold ETFs: Long-term after 12 months (12.5%); earlier sales at slab rate. Gold mutual funds and fund-of-funds need more than 24 months.
- Sovereign Gold Bonds: The 2.5% yearly interest is taxed at your slab rate. The gain at maturity is tax-free only if you subscribed at issue and held the bond until maturity. From 1 April 2026, bonds bought on the stock exchange, and bonds redeemed early, are taxed: 12.5% if held more than 12 months, slab rate otherwise. No new SGBs have been issued since February 2024.
- Indexation: Not available for gold sold on or after 23 July 2024.
- Losses: A long-term capital loss can be set off only against long-term gains; a short-term loss against any capital gain. Unused losses can be carried forward for 8 years if you file your return on time.
Rules for Tax Year 2026-27 (Income-tax Act, 2025, as amended by the Finance Act, 2026). Check with a tax adviser for your case.
Frequently Asked Questions
FAQHow do I calculate profit on gold jewelry?
Enter what you paid per gram, the making-charge percentage and GST from your bill, and the price per gram the buyer offers. The calculator already adds making charges and GST to your cost, so don't subtract them from the sale price. Jewellers usually buy back at the gold value less a deduction and don't refund making charges or GST.
Is GST part of my cost?
You pay 3% GST on the full bill for gold coins, bars and ready-made jewellery: the gold value plus making charges. GST is not refunded when you sell, so it is part of your cost. If a jeweller makes jewellery from gold you supply and bills only the making charge, that charge usually carries 5% GST; check the rate on your bill.
Is gold taxed differently from equity?
Yes. Listed shares and equity funds become long-term after 12 months, get a ₹1.25 lakh yearly exemption, and short-term gains are taxed at 20%. Physical gold needs more than 24 months to become long-term, has no ₹1.25 lakh exemption, and short-term gains are taxed at your slab rate. Long-term gains on both are taxed at 12.5%.
Should I sell gold when prices are high?
Gold serves as a portfolio diversifier and inflation hedge. Rather than timing the market, keep the share of gold you planned for: sell some when gold grows past it and buy when it falls below.
How do I account for making charges in gold profit?
Making charges are part of your cost and are rarely recovered on sale. This calculator already adds them, and the GST on them, to your total cost, so enter the buyer's price as it is. That is why coins and bars, with low or no making charges, usually beat jewellery as an investment.