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PTR PTS Calculator for Pharma Pricing

This free PTR PTS calculator works out the price to retailer and price to stockist from an MRP, after GST, and shows your margin as a franchise partner.

Start from

Retailer margin is worked out on
Your margin as a franchise partner (optional)

Per unit

PTR (before GST)

with GST

PTS (before GST)

with GST

MRP (incl. GST)
MRP without GST
Retailer earns
Stockist earns

Margins differ from company to company and are set in your agreement. For scheduled formulations the MRP cannot go above the ceiling price notified by NPPA plus GST. Use the figures here as a starting point, not as a price list.

This PTR PTS calculator works out the price to retailer and the price to stockist from the MRP of a product, after taking GST out. You can also go the other way and find the MRP from a PTR. Add the rate a company quotes you and it shows your own margin as a franchise partner, per unit and for the quantity you plan to buy.

What MRP, PTR and PTS mean

  • MRP (maximum retail price) is the highest price at which the product can be sold to a patient. It is printed on the pack and includes GST.
  • PTR (price to retailer) is the rate at which a chemist buys from the stockist or distributor. The gap between MRP and PTR is the retailer's margin.
  • PTS (price to stockist) is the rate at which the stockist buys from the company or its distributor. The gap between PTR and PTS is the stockist's margin.

PTR and PTS are normally quoted before GST. GST is added on the invoice and the buyer claims it back as input credit, so it does not count as margin for anyone in the chain.

How the calculator works it out

The usual method in the trade, and the default in the calculator, goes in three steps:

  • MRP without GST = MRP ÷ (1 + GST rate)
  • PTR = MRP without GST × (1 − retailer margin)
  • PTS = PTR × (1 − stockist margin)

Take a tablet strip with an MRP of ₹100 and GST at 5%. The MRP without GST is ₹95.24. With a 20% retailer margin the PTR is ₹76.19. With a 10% stockist margin the PTS is ₹68.57. On the invoice the chemist pays ₹80.00 for that strip and the stockist pays ₹72.00, both including GST.

Some companies work the retailer margin out on the MRP including GST instead. That gives a slightly lower PTR. If your price list does not match the calculator, switch the margin basis and check again before you assume the list is wrong.

Finding the MRP from a PTR

Brand owners and new franchise partners often know the PTR they want to offer chemists and need the MRP to print. Choose PTR → MRP, enter the PTR, and the calculator reverses the steps: MRP = PTR ÷ (1 − retailer margin) × (1 + GST rate). Round the result to a price that looks natural on the pack, then check that the margins still work.

What margins are normal

A 20% margin for retailers and 10% for stockists are the figures most people start from, and that is why the calculator opens with them. They are not fixed rules. Generic and PCD ranges often give the chemist more, and some speciality ranges give less. Read the margins in your agreement rather than relying on a figure you heard in the market.

Your margin as a PCD franchise partner

In a typical PCD franchise, the company bills you below PTS and you supply chemists, stockists or hospitals in your monopoly area. Enter the company's rate in the optional box and the calculator shows two numbers. One is your margin if you sell to stockists at PTS. The other is your margin if you supply chemists directly at PTR. Most partners do a mix of both, so the real figure falls between them.

Remember the costs that sit outside the price: freight, the samples and visual aids you hand to doctors, breakage, near-expiry stock and the credit you give to chemists. A range that looks rich on paper can earn little once these are paid. Ask the company how it handles expiry returns and what promotional material is free before you sign.

Price rules to keep in mind

For scheduled formulations covered by the Drugs (Prices Control) Order, the MRP cannot go above the ceiling price notified by the NPPA plus GST. For other medicines, the yearly increase in MRP is capped by the same order. A company that quotes an MRP should be able to show it is within these limits. When GST rates change, as they did for most medicines in September 2025, the price before tax and the PTR and PTS change with it. Use our GST calculator for the tax side of an invoice.

Common mistakes

  • Working the margin out on the MRP with GST still inside it, when the company uses the price before tax.
  • Adding a scheme of free strips without spreading its value across the billed units.
  • Comparing two companies' rates when one quotes with GST and the other without.

Comparing franchise offers for a particular composition? Find the companies that list it in the molecules A to Z list.

Frequently asked questions

How is PTR calculated from MRP?
Take GST out of the MRP by dividing it by one plus the GST rate, then reduce the result by the retailer margin. At 5% GST and a 20% margin, an MRP of ₹100 gives a PTR of ₹76.19 before GST.
How is PTS calculated?
PTS is the PTR reduced by the stockist margin. With a PTR of ₹76.19 and a 10% stockist margin, the PTS is ₹68.57 before GST. GST is added on top when the stockist is billed.
What retailer and stockist margins are normal?
Many people start from 20% for retailers and 10% for stockists, which is why the calculator uses them by default. Real margins vary by company and range, so always go by the figures in your franchise agreement.
Are PTR and PTS quoted with or without GST?
They are usually quoted before GST. The tax is added on the invoice and the buyer claims it as input credit. Check which way a price list is written before comparing two companies.
Can the MRP be set at any level?
No. For scheduled formulations under the Drugs (Prices Control) Order, the MRP cannot exceed the ceiling price notified by the NPPA plus GST. Yearly increases for other medicines are also capped under the same order.
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