Gold Loan Calculator

1. Enter the weight of your gold in grams and select its purity in karats.
2. Add the current gold rate per gram of pure gold and the lender loan-to-value limit.
3. Read the gold value, the pure gold content and the eligible loan amount, all updating live.

Each output means something specific:

A gold loan is a secured loan where you pledge gold jewellery or coins as collateral and the lender advances a percentage of their value. Because the loan is backed by an asset the lender holds, it is usually quick to arrange, needs little paperwork and carries a lower interest rate than an unsecured personal loan. You keep ownership and get the gold back when the loan is repaid.

The amount you can borrow depends on three things: how much pure gold you have, the current gold price, and the lender loan-to-value limit, which is the share of the value they are willing to lend. Regulators often cap that share to protect both sides.

It converts your gold to its pure-gold value, then applies the loan-to-value percentage to find the eligible loan.

Purity is the fraction of pure gold in the item: 24-karat is pure, so its factor is 1, while 22-karat is about 0.917 and 18-karat is 0.75. Multiplying the weight by that factor and by the per-gram rate gives the true gold value, and the loan-to-value limit then sets how much of it can be borrowed.

1. Multiply the weight by the purity factor to get pure gold grams.
2. Multiply by the rate per gram for the gold value.
3. Apply the loan-to-value percentage for the eligible loan.

The rate here is the price of pure, 24-karat gold, so the purity factor does the work of adjusting for lower-karat items.

Pledge 20 grams of 22-karat gold when pure gold is 60 per gram. The purity factor for 22-karat is about 0.917, so the pure content is 20 x 0.917 = 18.33 grams, worth 18.33 x 60 = 1,100.

At a 75 percent loan-to-value limit, the eligible loan is 1,100 x 0.75 = 825. The other 25 percent is the lender cushion against price falls and charges.

The same 20 grams in 24-karat would be worth 1,200 and secure a 900 loan, showing how purity directly raises both the value and the amount you can borrow.

Karat measures how much of an item is pure gold, and it drives the value.

Jewellery is often 22 or 18-karat for durability, so its loan value is lower than the same weight of pure gold. To see the difference as a percentage, the percentage calculator helps.

The estimate moves with the market and the lender policy.

The Gold Rate

Gold prices change daily, so the same items secure a larger or smaller loan from one week to the next.

Purity

Higher-karat gold holds more pure metal, so it is worth more and supports a bigger loan than lower-karat jewellery of the same weight.

Loan-to-value Limit

Lenders and regulators cap the share of value they will lend, often between 65 and 75 percent, which directly sets the loan.

Deductions

Stones, clasps and impurities do not count as gold, so a lender may value only the metal, lowering the figure.

Estimating Before You Apply

Get a realistic idea of the loan your gold could secure before visiting a lender.

Comparing Lenders

Test different loan-to-value limits and gold rates to see which lender offers more against the same items.

Deciding How Much to Pledge

Work out how many grams you need to pledge to reach a target loan amount.

1. Using the Wrong Purity

Valuing 22-karat jewellery as pure gold overstates the loan. Select the correct karat.

2. Counting Stones and Fittings

Only the gold is valued. Gemstones and non-gold parts do not add to the loan.

3. Assuming Full Value

Lenders advance a percentage, not the whole value, so the loan is always below the gold worth.

4. Ignoring Interest and Charges

This estimates the loan amount, not the cost. Interest, processing and valuation fees apply on top.

5. Using a Stale Gold Rate

Gold prices move daily; use a current per-gram rate for an accurate estimate.

The math is exact for the figures you enter, but a lender valuation and policy decide the real offer.

It depends on the weight, purity, current gold rate and the lender loan-to-value limit. At 75 percent, gold worth 100,000 secures about 75,000. This calculator estimates it for you.

Multiply the weight by the purity factor to get pure gold, then by the per-gram rate. So 20 grams of 22-karat at 60 per gram is about 1,100 of gold value.

It is the share of the gold value a lender will advance, often 65 to 75 percent. The rest is a cushion against price falls and charges.

Yes. Higher-karat gold contains more pure metal, so it is worth more and supports a larger loan than lower-karat jewellery of the same weight.

Yes. Enter the rate for pure 24-karat gold per gram. The purity factor then adjusts the value for lower-karat items automatically.

No. Only the gold itself is valued. Gemstones, clasps and other non-gold parts do not add to the loan amount.

No. It estimates the loan amount you can borrow, not the cost. Interest, processing and valuation fees apply on top and vary by lender.

Lenders use their own gold rate, purity test and loan-to-value cap, and may deduct for non-gold parts, so the real offer can be lower.

No. The calculation runs in your browser, and nothing you enter is sent anywhere unless you Save a result, which stays on this device only.

• Loan (Wikipedia).
• Loan-to-value ratio (Corporate Finance Institute).
• How to work out a percentage (Maths Is Fun).