MRP Calculator (from PTR & margin)
What is an MRP calculator and why use it?
When you launch a new pharma product, you usually start from the rate you want to bill the retailer (the PTR) and the margin you want the retailer to earn — then you have to decide what MRP to print on the pack. This MRP calculator does that reverse maths. Enter your PTR, the retailer margin you want to offer, and the GST rate, and it gives you the MRP to print. Setting MRP correctly keeps your retailers happy with their margin while protecting your own.
MRP formula (reverse of PTR)
- MRP = PTR × (1 + GST%) ÷ (1 − Retailer margin %)
This is simply the PTR formula turned around. Because MRP includes GST and the retailer margin is taken on the MRP, you add GST back and divide by the remaining margin fraction.
Worked example
MRP = 100 × 1.12 ÷ 0.80 = ₹140
Retailer earns = 140 − (100 × 1.12) = ₹28 per unit (20% of MRP)
How to use MRP to position a product
A higher printed MRP gives the retailer a bigger visible margin, which can make a product easier to push — but it also raises the patient’s price. A lower MRP looks more affordable but leaves a thinner retailer margin. Use this calculator to test a few scenarios and find the MRP that balances retailer interest, patient affordability and your own net rate.
Do all your pharma maths in one app
The MRP calculator is one of 11 free tools in PharmaCalc — including PTR/PTS, scheme, net rate, GST, margin, profit, ROI and MR incentive. Works offline, Hindi interface. Open the free app →
Frequently asked questions
Does MRP include GST?
Yes. MRP is the maximum retail price and is inclusive of GST. PTR and PTS are exclusive of GST.
Can retailer margin be more than 100%?
No. The margin is taken as a share of MRP, so it must be below 100%. Typical pharma retailer margins are 16–20%.
Should MRP be the same in every state?
Yes, MRP is a single printed maximum price across India. GST is the same on the product nationally; only inter-state vs intra-state tax split differs on the invoice.
