Formula
What this gold calculator does
Calculates the value of gold (jewelry, bullion, scrap) based on weight, karat, and today's spot price. Handles the GCC market conventions: 21K dominates jewelry, 24K is for investment/bullion, 18K is the Western/imported alternative. Adds the standard 'making charge' (مصنعية) per gram for retail jewelry pricing, applies 15% VAT for Saudi/UAE retail purchases, computes the annual Zakat obligation (2.5% above the 85g nisab), and shows a comparison table of what the same weight would cost at different karats. Multi-unit input (grams, troy ounce, tola).
Karat purity factors explained
Gold karat measures purity by 24ths. 24K = 24/24 = 99.9% pure (the highest practical purity; some refiners produce 99.99% '4-nines' for investment-grade). 22K = 22/24 = 91.7% pure (Indian/Asian jewelry standard). 21K = 21/24 = 87.5% pure (the GCC standard, also called 'gold of Istanbul' or الذهب الإسلامبولي). 18K = 18/24 = 75.0% pure (Western jewelry standard; also designated '750' in European markings). 14K = 14/24 = 58.5% pure (US fashion jewelry standard). Lower karat = more durable (other metals like copper/silver add strength) but less inherent gold value per gram.
Why 21K is the GCC standard (الذهب 21)
21K (87.5% pure) dominates Gulf jewelry markets - approximately 60-70% of GCC jewelry sold is 21K. The choice reflects a balance: higher gold content than 18K (more value preserved at resale, easier zakat counting) but more durable than 22K or 24K (which are too soft for daily-wear jewelry). The 21K = 'Istanbul gold' (الذهب الإسلامبولي) tradition came via Ottoman jewelry-making conventions. When you buy 21K in Saudi Arabia or UAE, every gram contains 0.875g of pure gold; when you sell it back, the dealer pays for that pure gold content (minus refining cost).
Making charge (المصنعية) - the hidden cost
Making charge is the jeweler's labor and design fee, added per gram of jewelry. GCC typical ranges: 18K = 30-100 SAR/g; 21K = 30-80; 22K = 30-90; 24K bullion = 0-10. So a 50g 21K bracelet at 380 SAR/g 24K spot price (= 332.5 SAR/g at 21K) costs 50 × 332.5 = 16,625 SAR in gold value plus making charge: at 60 SAR/g making, add 3,000 SAR = 19,625 SAR before VAT. When you SELL the jewelry back, dealers pay only for the gold content (NOT the making charge) - so making is effectively a sunk cost. Negotiating making down is the best way to reduce jewelry cost.
VAT on gold purchases (Saudi/UAE)
Saudi Arabia charges 15% VAT on gold jewelry (since 2020) and 5% VAT on investment-grade bullion (>99% purity, bar form) - with a recent exemption move toward zero-VAT on investment gold in line with international standards. UAE charges 5% VAT on gold jewelry and 0% on investment-grade bullion. So a 1,000 SAR 21K necklace in Saudi Arabia costs 1,150 SAR total at the till. The VAT is a sunk cost when reselling (the dealer pays based on metal weight only, with their own VAT going to ZATCA). Tourists in Saudi Arabia can claim VAT refunds on purchases above 300 SAR per transaction through the ZATCA VAT refund app.
Zakat on gold (الزكاة على الذهب)
Annual Zakat of 2.5% is obligatory on gold (and silver, and cash) once you've held it above the nisab threshold for one full lunar year (hawl, ~354 days). The gold nisab is 85g of PURE gold equivalent - so 100g of 22K (= 91.7g pure) qualifies, but 90g of 21K (= 78.75g pure) does not. Two opinions on jewelry zakat: (1) majority view (Hanafi, Hanbali) - zakat applies to ALL gold including jewelry. (2) Maliki, Shafi'i view: regularly-worn jewelry under reasonable customary limit is exempt. The calculator above shows the zakat amount if you follow the inclusive view; if you follow the exempt-jewelry view, exclude items of daily-wear jewelry from the weight input. For binding rulings, consult a qualified scholar or use the HisabWeb Zakat Calculator for a complete multi-asset assessment.
Frequently asked questions
21K gold is 87.5% pure, so its per-gram price = today's 24K spot price × 0.875. As of 2026 with 24K at approximately 380 SAR/g, 1 gram of 21K = ~332.5 SAR (before making charge and VAT). Add typical making charge 30-80 SAR/g and 15% VAT for retail price. So a 1g 21K jewelry piece costs roughly 332 + 50 (making) = 382, then +15% VAT = ~439 SAR at the till. Spot prices update minute-by-minute - check goldprice.org or your local exchange.
21K = 87.5% pure (gold content) vs 18K = 75% pure. So 100g of 21K contains 87.5g of pure gold worth more than the 75g pure in 100g of 18K. 21K is softer (less durable) but holds more value. 18K is harder (more durable for daily wear, especially rings) and cheaper per gram. In GCC markets, 21K dominates jewelry (60-70% of sales); 18K is more common in Western imports and high-design pieces. For investment, choose 24K bullion; for daily-wear durable jewelry, 18K; for traditional GCC jewelry, 21K.
Making charge is the jeweler's labor and design fee, added per gram of jewelry. GCC typical ranges: 18K = 30-100 SAR/g (heavy filigree higher); 21K = 30-80 SAR/g; 22K = 30-90 SAR/g; 24K bullion = 0-10 SAR/g (minimal because no design work). Making is NEGOTIABLE in most GCC souks - shop multiple vendors. CRITICALLY: when you sell jewelry back, dealers pay only for the gold content (not the making) - so making is a sunk cost. Always factor this into resale value.
Two valid views: (1) Majority (Hanafi, Hanbali): Yes, Zakat 2.5% on ALL gold including jewelry IF the total pure-gold weight is ≥ 85g (nisab) AND held for one full lunar year (hawl). (2) Maliki, Shafi'i: regularly-worn jewelry within customary limits is EXEMPT - only investment gold and excess jewelry are zakatable. Choose the view followed by your madhab/scholar. The HisabWeb calculator above shows the zakat amount under the inclusive view; if you follow the exempt view, only include non-worn pieces and gold above your customary jewelry amount.
Saudi Arabia: 15% VAT on gold jewelry, with investment gold (>99% purity bullion bars) increasingly moving toward 0% per recent reforms. UAE: 5% VAT on gold jewelry, 0% on investment-grade bullion. Both countries offer VAT refunds for tourists on purchases above their respective minimums (300 SAR Saudi, AED 250 UAE). Note: VAT is a sunk cost when reselling - the dealer pays for the gold content only, with VAT paid separately to the tax authority. Buying gold abroad (e.g., Dubai souks) and bringing it home is common, but customs limits apply (typically 30-50g personal allowance without declaration).
Sources
- London Bullion Market Association (LBMA) - Gold Price Reference— London Bullion Market Association
- ZATCA - VAT on Gold and Precious Metals (Saudi Arabia)— Zakat, Tax and Customs Authority, Saudi Arabia
- World Gold Council - Gold Hallmarking and Purity Standards— World Gold Council
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