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Gold Loan Calculator
See how much cash your gold can unlock. Enter the weight, purity and market rate, set a loan to value cap and tenure, then press Calculate for your eligible amount and monthly EMI.
Written by TopicDrill Editorial Team·Updated June 2026
Outstanding balance over time
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How the gold loan calculator works
A gold loan lets you borrow against jewellery or coins without selling them. This tool mirrors how lenders size the offer. It values your gold from its weight, scales that by purity so 22 carat is worth slightly less than pure gold per gram, and multiplies by the current market rate to reach an appraised value.
It then applies your loan to value cap to find the maximum amount you can raise, and runs the standard reducing balance formula to turn that into a monthly EMI. The chart traces how the outstanding principal falls over the tenure as each instalment chips away at the balance.
A worked example
Pledge 50 grams of 22 carat gold when pure gold trades at 7,000 per gram. The purity adjusted value is about 320,000, and at a 75 percent cap you could borrow roughly 240,000. Repaid over 24 months at 12 percent a year, that works out to an EMI near 11,300 with total interest of about 31,000 across the term.
Things to keep in mind
Gold prices and lender LTV caps move, so the eligible amount is an estimate rather than a firm sanction, and missing repayments can put the pledged gold at risk. For background on how these loans are regulated, see the Reserve Bank of India. To compare the cost against a regular instalment loan, try our loan calculator.
Frequently asked questions
How is the gold loan amount calculated?
First the lender values your gold from its weight and purity at the current market rate, so 22 carat gold is valued at 22 divided by 24 of the pure rate. Then a loan to value cap is applied, often around 75 percent, and the loan you can raise is the gold value times that cap.
What is loan to value or LTV in a gold loan?
Loan to value is the share of your gold's appraised worth that a lender is willing to advance. A 75 percent LTV on gold worth 100,000 means a maximum loan of 75,000. The cap protects the lender if gold prices fall, and regulators often set an upper limit on it.
How is the EMI on a gold loan worked out?
When you repay in equal monthly instalments, the EMI uses the standard reducing balance formula. It is the loan times the monthly rate times one plus the monthly rate raised to the number of months, divided by one plus the monthly rate raised to the number of months minus one.
Does purity affect how much I can borrow?
Yes. Lower purity gold contains less pure metal, so it is valued less per gram and supports a smaller loan. Most lenders accept gold of 18 carat and above and discount the value in proportion to purity, which is exactly how this calculator adjusts the figure.
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