The concept
Melt value is the ceiling, the payout is the negotiation
Scrap buyers price gold by its pure content, then pay a share of that value. The share, the fee structure and how stones are handled are what differ between buyers, which is why two offers for the same bag of jewelry can be far apart.
This tool separates the two parts. Melt value is arithmetic on weight, purity and spot price. The payout percentage is the dealer's cut, which you set from the terms you have been quoted. If you already have an offer, enter it and read off the percentage of melt value it represents.
For a single item without dealer terms, use the gold calculator. Selling at a gain can have tax consequences; the cost basis calculator shows how a purchase price feeds into a gain. If you are comparing gold with other holdings, the gold and commodity investment calculator projects growth from an assumed price change.
The method
How the calculation works
Melt value for each piece is (weight − non-gold weight) × purity × spot price ÷ 31.1035 g. The dealer's share is the melt total times the payout percentage, less any flat fee.
- Compute the pure-gold weight and melt value of each piece you entered.
- Add the melt values together.
- Multiply by the dealer's payout percentage and subtract any flat fee or testing charge.
- If you entered an offer, divide it by total melt value to see the percentage it implies.
| Karat | Fineness | Gold content | Pure gold in 10 g |
|---|---|---|---|
| 8k | 333 | 33.3% | 3.33 g |
| 9k | 375 | 37.5% | 3.75 g |
| 10k | 417 | 41.7% | 4.17 g |
| 14k | 585 | 58.5% | 5.85 g |
| 18k | 750 | 75.0% | 7.50 g |
| 21k | 875 | 87.5% | 8.75 g |
| 22k | 916.7 | 91.7% | 9.17 g |
| 24k | 1000 | 100.0% | 10.00 g |
Frequently asked
Scrap Gold Calculator questions
How much will a dealer pay for scrap gold?
It depends on the dealer, the amount and the day. Buyers pay a percentage of melt value, and that percentage varies. Rather than trusting a rule of thumb, get the percentage in writing from several buyers, enter it above and compare the dollar results. The calculator's 85% starting value is a placeholder, not a market average.
How do I work out a dealer's payout percentage from their offer?
Enter the weights, karats and spot price, then type their offer into the cash offer box. The result shows the offer as a percentage of melt value. Comparing that percentage between buyers is fairer than comparing raw dollar offers made on different spot prices.
Why is the offer lower than melt value?
A buyer has to test the metal, ship or refine it, hold price risk until it is sold, and earn a margin. Refiners also charge for assay and processing. That gap is why the same pieces can attract noticeably different offers from different buyers.
Do I enter the weight with or without stones?
Weigh the whole piece, then put the weight of stones or non-gold parts in the optional field. If you cannot separate them, ask the buyer how they deduct for stones, because that is a common place for offers to differ.
Which spot price should I use?
Use the gold price per troy ounce shown by a source you trust at the time you compare offers, such as the LBMA benchmark or a live dealer quote. The field is prefilled with a cached gold-api.com price, refreshed about twice a day and shown with its timestamp. It can be hours old, so replace it with the quote you are actually being offered against.
Is the payout taxable?
It can be. Selling gold at more than you paid may create a taxable gain, and rules differ by country and by how the gold is classified. This calculator does not estimate tax; check current guidance from your tax authority or a qualified adviser before you sell.
Can I use this for gold coins and bars?
Yes for the melt value, using the stated purity, such as 999 or 916.7. Coins and bars with collector or bullion premiums are often worth more than melt, so a scrap-style payout may undersell them.