How to Calculate a Gold Jewelry Price, Including the Making Charge

Gold jewelry in Egypt is rarely sold at a fixed tag price. Because the metal is repriced every day, sometimes several times a day, a shop calculates the price at the moment of sale from four inputs: weight, karat, the gram price for that karat, and the making charge. Once you understand how those combine, you can check any invoice, whether you are a customer buying an engagement set or a shop owner pricing a showcase.

The core formula

The gram price must match the piece's own karat. A 21K bangle uses the 21K price, not the 24K price; an 18K ring uses the 18K price. If the relationship between karats is unclear, see the difference between 24K, 21K and 18K. The figures below are approximate for October 2026 (24K about 7,200 EGP/g, 21K about 6,300, 18K about 5,400). Real prices move daily, so always check today's gold price before you calculate.

What the making charge is, and the three ways it is quoted

The making charge (masna'iya) pays for the craftsmanship: design, casting or machine work, soldering, polishing, and the shop's margin. A plain machine-made chain carries a low charge; hand-finished, imported or intricate pieces carry a much higher one. Shops quote it in one of three ways:

• Per gram: a fixed amount on every gram, such as 250 EGP/g. This is the most common method in Egyptian shops because customers can compare it easily.
• Flat per piece: one amount regardless of weight, typical for light pendants and small earrings.
• Percentage: a share of the gold value, such as 6%. The catch is that it rises automatically whenever gold rises, even though the work itself has not changed.

Worked example 1: 21K bangle, per-gram making charge

Worked example 2: 18K ring with stones

The common mistake is pricing the whole weight as gold. A set piece has a gross weight (gold plus stones) and a net weight (gold only). Gold is priced on net weight; stones are priced separately according to their type and quality.

Worked example 3: percentage vs per-gram charge

That is a gap of more than 5,000 EGP on the same chain. Informed customers ask for the making charge in pounds per gram, and shops that use percentages should show the calculation on the invoice.

Worked example 4: flat making charge

Hallmark fee and VAT

The hallmark (damgha) certifies that the piece's karat is genuine, and its fee is usually charged per gram. Most shops fold it into the making charge rather than listing it separately; some itemize it. Either is fine, as long as it is not charged twice.

If the shop is VAT-registered, it applies VAT under the current rules. The example below is illustrative only and assumes 14% on the making charge; confirm the correct tax base for your business with your accountant, since rules can change.

Mistakes that throw the price off

• Using the 24K gram price for a 21K or 18K piece.
• Counting stone weight as gold, or charging making on gross weight without saying so.
• Using the morning's gram price after the market has moved.
• Rounding weight carelessly: 0.1 g of 21K is worth about 630 EGP.
• Printing one total without separating weight, karat and making charge, which invites disputes later.

For shop owners: let the system do it

A calculator works, but during wedding season, with prices updating mid-day, mistakes creep in. In GoldCore's point of sale every piece is stored with its gross and net weight, karat and making-charge type. Update the gram price once and every price recalculates, and the invoice prints each component separately. If the customer is trading in old gold, see how to calculate buyback and exchange. You can try GoldCore free for 14 days with your own stock.