Average Gold Rate Calculator — Weighted Average Across Multiple Purchases
An average gold rate calculator computes the weighted average price paid across multiple gold purchases at different rates and weights. It is the calculation portfolio investors run after dollar-cost-averaging into bullion across months, and the one jewellers use to set sell-side margins on mixed-batch inventory.
The math is simple but error-prone done by hand: average rate = Σ (weight_i × rate_i) ÷ Σ weight_i. This calculator handles the bookkeeping — add as many tola/gram and rate pairs as you have, and get the true cost-basis rate that should drive your resale or hold decision.
How the weighted average works
Avg rate = (W1 × R1 + W2 × R2 + … + Wn × Rn) ÷ (W1 + W2 + … + Wn). Example: 2 tola at ₨300,000 + 3 tola at ₨340,000 = (2×300,000 + 3×340,000) ÷ 5 = (600,000 + 1,020,000) ÷ 5 = ₨324,000/tola weighted average.
Sample conversions
| Input | Result |
|---|---|
| 2 tola @ ₨300k + 3 tola @ ₨340k | ₨324,000/tola avg (5 tola total) |
| 50 g @ $58/g + 50 g @ $62/g | $60/g avg (100 g total) |
| 1 oz @ $1900 + 2 oz @ $2100 | $2,033/oz avg (3 oz total) |
When to use this calculator
- Dollar-cost-averaging analysis — what is your true cost basis after a year of monthly bullion purchases?
- Jeweller batch pricing — set a sell-side rate that protects the weighted-average buy cost across mixed-source inventory.
- Sell-decision threshold — compare today's spot against your weighted average to gauge break-even.
- Tax-cost reporting — many jurisdictions require weighted-average cost basis for capital-gains calculation on bullion.
Frequently asked questions
How is weighted average different from simple average for gold purchases?
Simple average ignores the quantity at each price. If you bought 1 tola at ₨300k and 9 tola at ₨340k, simple average says ₨320k — but you actually spent more on the larger lot, so the weighted average is ₨336k (much closer to ₨340k). Always use weighted average for cost-basis calculations.