PTS & PTR CALCULATOR (PHARMA)
Calculate Price to Stockist, Price to Retailer, and net trade margins
- Enter MRP & GST: Input the Maximum Retail Price printed on the product and select the applicable GST slab.
- Set Margins: Enter the Retailer Margin (typically 20% in India) and Stockist Margin (typically 10%).
- Calculate: The tool automatically strips out the GST to calculate the base price, applies the margins, and generates the exact billing prices.
Standard Indian Billing Formulas:
- Base MRP:
MRP ÷ [1 + (GST% ÷ 100)] - PTR (Excl. GST):
Base MRP × [1 - (Retail Margin% ÷ 100)] - PTS (Excl. GST):
PTR × [1 - (Stockist Margin% ÷ 100)] - Note: Trade margins in pharma are strictly calculated on the price excluding GST.
Billing & Margin Report
| Distribution Chain | Excl. GST | Incl. GST |
|---|---|---|
| Enter MRP and Margins to generate report. | ||
What is a PTS and PTR Calculator?
In the Indian Pharmaceutical, FMCG, and wholesale distribution sectors, calculating billing prices manually can be a massive headache due to the inclusion of GST (Goods and Services Tax). A PTS PTR Calculator automates the complex reverse-calculation required to determine the exact invoice prices for wholesalers and pharmacies.
- PTR (Price to Retailer): The price at which a stockist/wholesaler bills a pharmacy or retail shop.
- PTS (Price to Stockist): The price at which the manufacturing company or C&F (Carrying and Forwarding) agent bills the wholesale stockist.
Standard Pharma Margins in India
Under general trade practices and DPCO (Drug Price Control Order) guidelines in India, the trade margins for pharmaceutical products are fixed to ensure fair profitability across the supply chain.
- Retailer Margin: Typically fixed at 20%.
- Stockist / Distributor Margin: Typically fixed at 10%.
Crucial Rule: These margin percentages are always calculated on the base price excluding GST, not on the final MRP.
How to Calculate PTR and PTS from MRP
To calculate the billing prices accurately, you must first remove the GST from the Maximum Retail Price to find the Base MRP. Our pharma billing calculator uses the following sequential logic:
Suppose a medicine strip has an MRP of ₹112 and falls under the 12% GST slab. Standard margins apply (20% Retail, 10% Stockist).
Step 1: Find Base MRP (Excluding Tax)
Base MRP = 112 / (1 + 0.12) = ₹100.00Step 2: Calculate PTR (Price to Retailer)
The retailer gets a 20% margin on the base price.
PTR (Excl. Tax) = 100 - (20% of 100) = ₹80.00PTR (Billing Price Incl. 12% GST) = 80 + (12% of 80) = ₹89.60Step 3: Calculate PTS (Price to Stockist)
The stockist gets a 10% margin on the PTR base price.
PTS (Excl. Tax) = 80 - (10% of 80) = ₹72.00PTS (Billing Price Incl. 12% GST) = 72 + (12% of 72) = ₹80.64
Why Bother with the “Excluding Tax” Method?
Many new business owners make the mistake of calculating a 20% discount directly on the MRP (e.g., 112 – 20% = 89.6). While this mathematically works out to the same final PTR billing price in some scenarios, it completely ruins accounting records. When you file GST returns, the government requires you to strictly report the “Taxable Value” (Base Price) and the “Tax Amount” separately on the B2B invoice.
Using a proper Price to Retailer calculator ensures your invoices explicitly state the correct base values, preventing severe discrepancies during GST audits and Input Tax Credit (ITC) claims.
