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Updated 22 October 2026 · Source: All-Pakistan Sarafa Association
What Is Kat in Gold? The Resale Deduction Explained
Kat is the weight a jeweller deducts when you sell or exchange gold jewellery, to cover solder, alloy, polish and wear. The common rule is 1 ratti per masha, which is 12.5%. On 1 tola of 22K jewellery that is about Rs49,791 at today’s rate.
What Does Kat Mean?
Kat (کاٹ, literally “cut”) is the part of your jewellery’s weight that a Pakistani jeweller does not pay for when buying it back. It is applied to 22K, 21K and lower-karat jewellery, not usually to 24K bars or coins from a recognised dealer.
Kat is often confused with karat, but they are different things. Karat (22K, 21K) describes how pure the gold is. Kat is a weight deduction made at the time of sale. A 22K bangle is valued at the 22K rate and has kat taken off its weight.
How Kat Is Calculated
Traditional jewellers work in tola, masha and ratti. The common deduction is 1 ratti for every masha of jewellery weight.
| Unit | Equals | Grams |
|---|---|---|
| 1 tola | 12 masha = 96 ratti | 11.6638 g |
| 1 masha | 8 ratti | 0.972 g |
| 1 ratti | – | 0.1215 g |
So on 1 tola (12 masha) of jewellery the jeweller deducts 12 ratti, or 1.5 masha, and pays for 10.5 masha. At today’s 22K rate of Rs398,325 per tola, that means you receive about Rs348,534 instead of Rs398,325.
Some shops apply less, such as 1 ratti per 1.5 masha (about 8.3%), especially for exchanges or plain machine-made pieces. Others add extra deductions for polish, pearls, enamel or heavy solder, which can push the total towards 20% or more.
Kat Table at Today’s Rate
How much kat costs you on common jewellery weights, at the standard 12.5% deduction:
| Jewellery weight | 22K value | 22K kat (12.5%) | You receive (22K) | 21K kat (12.5%) | You receive (21K) |
|---|---|---|---|---|---|
| Half tola | Rs199,162 | − Rs24,895 | Rs174,267 | − Rs23,764 | Rs166,346 |
| 1 tola | Rs398,325 | − Rs49,791 | Rs348,534 | − Rs47,527 | Rs332,692 |
| 2 tola | Rs796,649 | − Rs99,581 | Rs697,068 | − Rs95,055 | Rs665,383 |
| 3 tola | Rs1,194,974 | − Rs149,372 | Rs1,045,602 | − Rs142,582 | Rs998,075 |
| 5 tola | Rs1,991,623 | − Rs248,953 | Rs1,742,670 | − Rs237,637 | Rs1,663,458 |
| 10 tola | Rs3,983,247 | − Rs497,906 | Rs3,485,341 | − Rs475,274 | Rs3,326,916 |
Rates: 22K Rs398,325 and 21K Rs380,219 per tola, based on the Sarafa rate of 21 October 2026.
Why Do Jewellers Deduct Kat?
- Solder and alloy: jewellery is assembled with solder, which contains less gold than the piece itself.
- Polish and plating: surface polish and colour treatments add weight that is not gold.
- Wear and loss in melting: some metal is lost when old jewellery is melted and refined.
- Uncertain purity: older or unbranded pieces may be below their stated karat; kat covers that risk.
- Dealer margin: part of kat is simply the jeweller’s profit on buying back.
These reasons are real, but the size of the deduction is a business practice, not a law, which is why it can be negotiated.
The True Cost of Buying and Selling Jewellery
Kat matters most when you combine it with making charges. Suppose you buy a 2-tola 22K set today with an example making charge of Rs15,000 per tola, and sell it back at the same gold rate:
| Amount | |
|---|---|
| You pay (gold + making) | Rs826,649 |
| You receive on resale (gold − 12.5% kat) | Rs697,068 |
| Your loss even if the gold price does not move | Rs129,581 (16%) |
This is why jewellery is a poor short-term investment. The gold price would need to rise about 19% just to break even. If your goal is saving, 24K bars avoid both making charges and kat.
Kat When Exchanging Old Gold
Exchanging old jewellery for new pieces at the same shop is common in Pakistan, especially before weddings. Many jewellers deduct less kat on an exchange than on a cash sale because they keep you as a customer. Always ask:
- What kat do you deduct for exchange, and what for cash?
- Is the old gold valued at today’s rate for its karat?
- Are stones, pearls and enamel weighed separately?
- Can you write the old weight, karat, rate, deduction and credit on the bill?
See a full example on our Gujranwala page.
Estimate Your Kat
Use the selling estimator on our calculator page: enter the weight in grams, choose the karat and set the kat percentage your jeweller quotes. Or use this quick tool, which shows the full value before kat:
How to Reduce the Kat You Pay
- Sell to the shop that sold it: many jewellers honour lower deductions for their own pieces, especially with the original bill.
- Get three quotes: kat varies between shops; ask each for the deduction before they weigh the piece.
- Have it tested first: a karat test from an independent shop stops a buyer from claiming lower purity.
- Remove stones yourself if possible: or insist they are weighed separately.
- Choose exchange over cash if you are buying new jewellery anyway.
- Buy bars for saving: 24K bars from recognised dealers are usually bought back close to the 24K rate without kat.
Kat in Gold: Frequently Asked Questions
What is kat in gold?
Kat is the weight a jeweller deducts when buying back gold jewellery, to cover solder, alloy, polish and wear. It is usually 1 ratti per masha, or 12.5%.
How much kat is deducted per tola?
At 1 ratti per masha, 12 ratti (1.5 masha) is deducted per tola. On 22K that is about Rs49,791 per tola today.
Is kat the same as karat?
No. Karat measures purity (22K, 21K). Kat is a weight deduction made when you sell or exchange jewellery.
Is kat deducted on 24K gold?
Usually not on 24K bars or coins from a recognised dealer, which are bought back close to the 24K rate.
Can I negotiate kat?
Yes. Kat is a business practice, not a fixed rule. Ask several jewellers and use your original bill.
Is kat lower on exchange?
Often yes. Many shops deduct less when you exchange old gold for new jewellery than when you sell for cash.
How much will I get for 1 tola of 22K jewellery?
About Rs348,534 today, after a 12.5% kat deduction.
Why is kat so high on some jewellery?
Pieces with polish, pearls, enamel or heavy soldering can attract extra deductions above the standard 12.5%.
Related Gold Rates and Tools
Rates are for information only and exclude making charges, kat and dealer premiums. Not investment advice. See our disclaimer and methodology. Official daily rate source: All-Pakistan Sarafa Gems and Jewellers Association rates (Business Recorder).
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