PTR and PTS Calculator and It’s Explanation

If you are from the pharma industry and need to calculate PTR PTS after GST, you might be facing some mathematical challenges. Just to clarify, PTR (Price to Retailer) is what the retailer pays to the stockist, while PTS (Price to Stockist) is what the stockist pays to the pharma company. And we at India Pharma Franchise provide you with a free PTS  PTR calculator tool, which is quite simple to use, allowing you to calculate prices quickly and accurately.

What are PTR and PTS? And How to Calculate Them Manually

Let’s start with the basics.

The PTR stands for the price to the retailer. This is the amount that a retailer pays a stockist to buy a particular medicine or pharma product. This is important because it directly affects how much the retailer will earn when selling products to customers. Therefore, every time someone stocks pharmacy drugs, they are doing it at the PTR rate.

On the other hand, PTS stands for price to the stockist. This is the amount that pays a stockist or distributor to the pharma company to get those products. This helps the stockist to know how much margin they make when they sell it to retailers below the chain.

In simple words:
PTR: What the retailer pays the stockist.
PTS: What the stockist pays the pharma company.

Now, How do you calculate PTR PTS Manually?

PTR = Net Margin / GST Factor
Net Margin = (MRP – (MRP × Retailer Margin %))
GST Factor = (100 + GST%) / 100

So final Formula are:

PTR = (MRP – (MRP × Retailer Margin %)) / (100 + GST%) / 100
PTS = PTR – (PTR × Stockist Margin %)

Let’s break it down with an example:

• MRP = ₹1000
• Retailer Margin = 20%
• Stockist Margin = 10%
• GST = 12%

Step 1: Calculate Net Margin
Net Margin = ₹1000 – (₹1000 × 20%) = ₹800

Step 2: GST Factor
GST Factor = (100 + 12) / 100 = 1.12

Step 3: PTR
PTR = ₹800 / 1.12 = ₹714.29

Step 4: PTS
PTS = ₹714.29 – (₹714.29 × 10%) = ₹642.86

Benefits of Using Our PTR PTS Calculator

If you calculate PTR and PTS by yourself, it can be tedious for you, and the chances of making mistakes also increase. That’s why our free online PTR PTS calculator exists to make things extremely simple and fast for you. Whether you are doing it for some product or for a lot of products, it can be very useful.

Here’s why you’ll love using it:

• Simple and Smooth to use
• Saves time and effort
• Reduces errors in calculations
• Supports smart pricing decisions
• Ideal for any product range

Common Mistakes to Avoid While Calculating PTR PTS

Let’s be honest, calculating PTR and PTS manually isn’t always easy. A lot of people end up using MRP that includes GST, apply the wrong retailer or stockist margins, or get confused between inclusive and exclusive pricing. These small mistakes can affect your entire pricing strategy and affect your profit margins.

The Common Mistakes people make while calculating PTR PTS

• Using MRP with GST directly
• Applying incorrect Retailer/Stockist margins
• Mixing up inclusive vs. exclusive pricing
• Not rounding off final values for practicality
  

To save yourself from the confusion and time, just use our PTS PTR calculator tool. It gives you the correct PTR and PTS Value in just one click. And also, it takes away from this headache.

Why PTR PTS Matter So Much in the Pharma Business

If you’re working in pharma and especially in the PCD Pharma Franchise model, knowing your PTR and PTS isn’t just a formality—it’s crucial. These two values play a big role in how you set your pricing, plan your profit margins, and manage your distribution.

When you calculate the PTR (price to retailer) and PTS (price to stockist) correctly, you can easily predict the profits and then make better deals or plans for your partners. This helps you to always stay ahead in the competitive market and also helps your business to run very easily and smoothly.

But if your calculations are even slightly wrong, you could either increase the price of your product or cut into your margins without even realizing it. This means potential losses, unhappy partners, and messed-up distribution plans.

In the real-world pharma setup, every single penny counts, and transparency is also very important. Properly calculating the letters also helps you to build strong trust and better relationships with the retailers and stockists, and hence it is a smart business.

How GST Changed the Game for Pharma Pricing

When GST came into effect, it completely changed the pricing structure in the pharma industry. Earlier, the margin was calculated directly on MRP, and things were very simple. But now, since MRP includes GST, you cannot apply the margin in the old way.

You need to remove GST first to get an exact PTR and PTS value. If you leave this step, your pricing may be incorrect, and the profit margin can reduce the margin without paying attention to you. This is why, post-GST, calculation has become a little more technical-but if done correctly, it has also become more accurate. It is all about obtaining the actual value first.

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Want to start your own pharma business with low investment, no targets, and monopoly rights? ELV Life Sciences, through India Pharma Franchise, offers one of India’s most trusted PCD pharma opportunities.

We bring you 1200+ quality WHO-GMP certified products, 15+ years of franchise experience, and 30+ years in manufacturing.

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Location: SCF 330, First Floor, Motor Market, Manimajra, Chandigarh – 311001
Website: India Pharma Franchise
Call/WhatsApp: 8890309463 / 8949424172
Email: contact@indiapharmafranchise.com

We serve all across India. Let’s build your pharma business together.

FAQ

What is the difference between PTR and PTS?
PTR (price of retailer) is the price that a retailer buys from a wholesaler. PTS (price of stockist) is the value that the stockist pays to the pharma company. PTR is usually higher than PTS.

Is PTR inclusive of GST?
No, PTR should be calculated except GST. Including GST can lead to incorrect profit margins and pricing errors. Always remove GST from MRP before calculating PTR or PTS for accurate results.

Can I calculate bulk products using this calculator?
Yes! You can easily calculate many products one by one using our tool. Just enter the details of each product, and it will quickly give you the exact PTR and PTS value, which will make the wholesale pricing simple and trouble-free.

Is this tool suitable for PCD franchise models?
Absolutely. This calculator is ideal for PCD Pharma franchise businesses. This simplifies pricing decisions, improves margin clarity, and supports better plans for both stockists and franchise partners.

How often should I revise PTR/PTS?
Review PTR and PTS every 3-6 months or whenever MRP, GST rates or margin changes. Regular updates ensure accurate pricing, better profit and strong distribution planning.

What is full form of PTS?
The full form of PTS is price to the stockist. This is the amount that pays a stockist or distributor to the pharma company to get those products. This helps the stockist to know how much margin they make when they sell it to retailers below the chain.

Conclusion

The correct calculation of PTR and PTS is important for anyone in the pharma business, especially in the PCD franchise model. With GST and changing margins, manual calculations can be confusing and time-consuming. This is why our free PTR and PTS calculator makes things easier-it helps you get quick, error-free results for any product.

Whether you are a beginner or experienced, this tool saves time, avoids mistakes, and supports smart pricing decisions. In addition, if you plan to start your own pharma franchise, India Pharma Franchise by ELV Life Sciences provides a reliable and profitable opportunity with full support. Try our calculator today and simplify your pharma business trip.