Pharma Margin Calculator
What does the margin calculator tell you?
If you already know a product’s MRP, PTR and PTS, this calculator tells you exactly what margin the retailer and the stockist are each making — and how many rupees each earns per unit. It is the quickest way to check whether a deal is fair, compare two products, or understand a competitor’s pricing.
Retailer and stockist margin formula
- Retailer margin % = (1 − PTR × (1 + GST%) ÷ MRP) × 100
- Stockist margin % = (PTR − PTS) ÷ PTR × 100
Because MRP includes GST and PTR does not, the retailer margin is calculated by adding GST back to PTR before comparing with MRP. This makes it the exact reverse of the standard PTR formula, so your numbers stay consistent across all your tools.
Worked example
Retailer margin = (1 − 714.29 × 1.12 ÷ 1000) × 100 = 20%
Stockist margin = (714.29 − 642.86) ÷ 714.29 × 100 = 10%
Why margin clarity matters in PCD pharma
Margins are what keep your retailers and stockists motivated to stock and push your products. If a retailer feels the margin is too thin compared with a competitor, they will quietly recommend the other brand. Checking your margins regularly — and keeping them in line with the segment norm — protects your distribution network and your sales.
Do all your pharma maths in one app
The margin calculator is one of 11 free tools in PharmaCalc — PTR/PTS, MRP, scheme, net rate, GST, profit, ROI and MR incentive. Works offline, Hindi interface. Open the free app →
Frequently asked questions
Is retailer margin calculated on MRP or PTR?
Retailer margin is taken as a share of MRP. Stockist margin is taken as a share of PTR. This calculator handles the GST adjustment for you.
What is a healthy margin in pharma franchise?
Retailer margins of 16–20% and stockist margins of 8–10% are common, though high-value segments like nutraceuticals or derma can run higher.
Can I compare two products with this?
Yes. Enter each product’s MRP, PTR and PTS one at a time to compare which gives better trade margins.
