Scrap Gold Calculator

How Scrap Gold Pricing Works When You Sell

Scrap gold pricing looks simple on the surface because gold has a widely published spot price. The moment you turn a ring, chain, bracelet, or mixed jewelry lot into “scrap,” however, the number that matters is no longer the retail price of jewelry and not even the headline spot price. What matters is how much fine gold is actually present, what the buyer believes that fine gold content is, and how the buyer converts melt value into a payout after spreads and fees. A Scrap Gold Calculator is useful because it turns that full path into visible steps, so you can make sense of offers and avoid the most common misunderstandings.

When you sell to a refiner, gold buyer, pawn shop, or a store that buys scrap, the buyer is not paying for brand, craftsmanship, or sentimental value. They are paying for recoverable metal. That means your item is translated into three components: weight, purity, and a price benchmark. Weight tells you how much total material there is. Purity tells you what fraction of that weight is actually gold. The benchmark price (usually spot) tells you what pure gold is worth per unit. Multiply those together and you get melt value, which is the theoretical value if that gold were refined to pure gold and sold at the benchmark.

Scrap Gold Value vs Melt Value vs Net Payout

Many sellers hear the phrase “melt value” and assume it is what they will receive. Melt value is not a promise; it is a starting point. Net payout is what you actually receive after the buyer applies their terms. In between melt value and net payout are deductions and costs that vary by buyer:

• Non-gold deductions for stones, clasps, springs, or mixed materials that add weight but do not refine into gold.
• Assay or loss allowance to model uncertainty and refining losses, especially on mixed lots or solder-heavy pieces.
• Buyer spread/discount that reflects the buyer’s margin and risk relative to the benchmark price.
• Payout rate which is often stated as “we pay X% of melt” and can differ by karat, quantity, and buyer type.
• Fixed fees such as testing, transaction fees, or minimum fees that matter most for small lots.

This calculator separates those pieces. You can estimate fine gold grams, compute melt value, then apply deductions, payout rate, and fees to arrive at a net payout. You can also see the effective payout as a percentage of melt, which is one of the cleanest ways to compare two offers that use different fee structures.

Why Purity Matters More Than Most People Expect

Karat is purity expressed out of 24 parts. A 24K item is pure gold. A 22K item is 22/24 pure, or about 91.67%. An 18K item is 18/24 pure, or 75%. A 14K item is 14/24 pure, or about 58.33%. That purity multiplier is the difference between overestimating value and accurately estimating it. A 10-gram piece of 18K gold does not contain 10 grams of gold; it contains about 7.5 grams of fine gold. The remaining weight is alloy metals that contribute to durability and color, but not to fine gold content.

Many items are stamped (for example, 750 for 18K, 585 for 14K, 916 for 22K) which is fineness in parts per thousand. Fineness is another way to represent purity. 750 means 75% gold by mass. If you have a fineness mark, you can use it directly in the calculator. If you have karat, the calculator converts it into a purity fraction automatically.

Weight Units and the Troy Ounce Trap

Gold spot is typically quoted per troy ounce, and a troy ounce equals 31.1034768 grams. Many household scales and general references use the regular ounce, which is 28.349523125 grams. Those two “ounces” are not the same. Mixing them up can noticeably change results, especially for higher-value lots. That is why the calculator lets you input weight in grams, pennyweight, troy ounces, regular ounces, or tola, and it converts everything into grams for a consistent melt calculation.

Pennyweight (dwt) is used in some scrap and jewelry contexts, and there are 20 pennyweight in one troy ounce. Tola is a traditional unit used widely in South Asia and familiar in parts of the Middle East. Converting properly is not optional; it is the foundation. When your buyer quotes “price per gram” but the spot market is “price per ozt,” conversion is the bridge that keeps your estimate aligned.

Non-Gold Deductions: Stones, Clasps, and Mixed Materials

Scrap gold lots often include parts that are not gold. Rings can include gemstones, watch bands can include steel parts, and some jewelry contains springs or clasps made of different metals. Buyers handle this differently. Some weigh the item, then visually estimate the non-gold portion. Some remove stones before weighing. Some apply a conservative deduction to protect against overpaying. If your item includes stones or significant non-gold components, using a non-gold deduction percentage in the calculator can make your estimate closer to reality.

This is also where preparation matters. If you can provide metal-only weight or a clear description of what is included, you often reduce uncertainty. Lower uncertainty can mean a better payout rate or a smaller discount because the buyer is taking less risk. The calculator cannot remove stones, but it can model the typical effect: lower fine gold grams than the total weight suggests.

Assay Loss and Variability Allowance

Even when an item is stamped, real purity can vary due to wear, solder, plating, or mixed alloys. For lots with many small items, the stamp might be missing on some pieces. Some buyers therefore apply a small allowance or “loss” factor to account for uncertainty and refining losses. This is not always a sign of bad behavior. It can reflect how that business manages risk, especially when buying mixed lots from the public.

In the calculator, assay/loss allowance reduces the fine gold grams before melt value is computed. This can help you model conservative offers. If you receive an offer that seems lower than your melt calculation, you can test whether the difference is explained by an allowance plus fees, or whether the buyer’s payout rate is simply lower than expected.

Buyer Spread and Payout Rate Are Different Levers

Some buyers talk in terms of payout rate: “We pay 90% of melt.” Others effectively apply a spread or discount to the spot price and then pay close to the adjusted melt. Both approaches can lead to similar outcomes. What matters is net payout. If a buyer uses a small spread but a lower payout rate, the net might end up the same as a buyer with no spread and a slightly higher payout rate. That is why it is useful to model both in a transparent way.

The calculator gives you both levers. You can add a buyer spread/discount to reflect “below spot” pricing and add a payout rate to reflect “percent of melt.” This makes it easier to mirror how different buyers phrase their offers without losing track of what it does to your final net.

Fixed Fees Can Change the Winner on Small Lots

Many sellers focus only on payout percentage. That works best when your lot is large enough that fixed fees are negligible. On small lots, fixed fees can dominate. A buyer who pays 92% of melt but charges a minimum testing fee might produce a lower net than a buyer who pays 88% of melt with no fee. This is why the calculator shows the effective payout of melt after fees. It lets you compare offers apples-to-apples.

If you are selling a single light item, try modeling your quote with a fee included. You may discover that even a small fee changes the effective payout by several percentage points. That is not necessarily unfair; it is the cost structure of the transaction. But it is important for decision-making.

How to Use the Scrap Payout Tab Step by Step

Start with your best inputs. Enter a spot price in your preferred currency. Choose the spot basis that matches your quote (per troy ounce is most common). Then enter the total weight and select the unit that matches your scale. Choose karat, or enter custom purity or fineness if you have it. If the item includes stones or non-gold parts, add a non-gold deduction. If your lot is mixed or you want to model conservative assumptions, add an assay/loss allowance. Then enter payout rate, buyer spread/discount, and any fixed fees.

The results show total weight in grams, fine gold grams, melt value, an estimated offer range, net payout, and effective payout of melt. The offer range is useful because real offers vary between buyers and by negotiation. A small range helps you avoid treating one quote as the only possible outcome.

Melt and Spot Conversions for Better Negotiation

The Melt & Spot Conversions tab is designed to give you quick reference numbers. It converts pure gold spot into price per gram, per troy ounce, per tola, and per pennyweight. It also shows the karat-adjusted price per gram for a selected purity. This is practical when a buyer quotes per gram pricing for 22K or 18K while you are reading spot in per ozt terms. Seeing both helps you spot whether a quoted price is consistent with your expected melt value.

If you are negotiating, the important point is not to argue about a single headline number. Instead, clarify the assumptions: which spot basis, what purity, what weight is being used (metal-only or total), and what payout rate or discount applies. Once you align those, disagreements become smaller and easier to resolve.

Target Net and Required Spot: A Reality Check Tool

Sometimes you are not trying to guess today’s payout; you are trying to decide whether an offer meets your goal. The Target Net / Required Spot tab works backward. You enter the net you want to receive, your weight and purity, and the buyer’s payout terms. The calculator estimates the spot price level implied by those terms. If that implied spot is far above the real market, the offer is likely too low for your goal. If it is close to market, the offer is more reasonable.

This is also useful if you are deciding whether to sell now or wait. If you believe spot could rise, you can see how much it would need to rise to achieve your target net given the same payout terms. That turns “should I wait?” into a measurable question instead of a guess.

Lot Totals for Multiple Items and Bulk Selling

Bulk selling changes economics. Some buyers pay more for larger lots because testing and refining become more efficient. Some buyers reduce or waive minimum fees for bulk. The Lot / Batch Totals tab models multiple items with an average weight, then applies the same melt and payout logic to a combined total. It shows total melt value, total net payout, net per item, and net per gram. This can help you decide whether to sell individually or in bulk, and whether one buyer’s terms are better for your specific lot size.

If your lot contains mixed karats, the most accurate method is to split items by karat and run separate calculations. That gives you a better estimate than averaging purity across everything, especially if your weights differ by item type.

Practical Tips to Improve Your Scrap Gold Outcome

• Use accurate weight: a digital scale and gram units reduce conversion risk.
• Sort by karat: separate 10K, 14K, 18K, 22K, and 24K if possible.
• Ask how weight is handled: confirm whether stones and non-gold parts are deducted.
• Compare net, not just payout rate: fees can change the winner.
• Understand the benchmark: confirm spot basis (ozt vs gram) and timing of the quote.
• Get multiple quotes: small differences in terms can materially change net payout.

A good scrap gold sale is usually about reducing uncertainty and comparing like-for-like offers. When you can explain your weight, karat, and expectations clearly, you are less likely to accept a low offer simply because the pricing feels complicated.