How to use the Pharma Margin Calculator (PTR/PTS)
- Enter the MRP (inclusive of GST) and the GST rate.
- Enter the retailer and stockist margin percentages.
- Optionally add a scheme such as 10 + 1 free.
- See PTR, PTS, margins per unit and the effective net rates.
How PTR and PTS are calculated
MRP excl. GST = MRP ÷ (1 + GST%)
PTR = MRP excl. GST × (1 − Retailer margin%)
PTS = PTR × (1 − Stockist margin%)
Example: MRP ₹105 with 5% GST → ₹100 before tax. With a 20% retailer margin, PTR = ₹80. With a 10% stockist margin, PTS = ₹72. GST is then charged on PTR or PTS on the invoice.
Typical margins in India
For most branded medicines, retailers commonly get around 20% and stockists around 10%. For price-controlled (scheduled/NLEM) medicines, margins are usually lower — commonly 16% for retailers and 8% for stockists. Companies, trade associations and regulations set the actual terms, and GST rates on medicines change from time to time, so always use the figures that apply to your product.
Schemes (free goods)
A scheme like “10 + 1” means you pay for 10 units and receive 11. The effective cost per unit = rate × 10 ÷ 11, which increases your real margin. The calculator shows the net rate and effective margin after the scheme.
Frequently asked questions
Is PTR calculated on MRP including GST?
The common trade practice is to remove GST from MRP first, then apply the retailer margin. Some companies calculate differently — check your company’s price list.
What GST rate applies to medicines?
It depends on the product and current GST notifications. Many medicines are at 5%, while some life-saving drugs are exempt. Select or type the rate that applies to your product.