Enter a pack's MRP and get the Price to Retailer and Price to Stockist — including the GST step that most published formulas leave out. Runs entirely in your browser; nothing you type is sent anywhere.
Three prices sit on the same pack, and they are quoted on two different conventions. That mismatch is what makes hand calculations disagree with the invoice.
| Term | Who pays it | GST convention |
|---|---|---|
| PTS — Price to Stockist | Stockist pays the company | Exclusive of GST |
| PTR — Price to Retailer | Pharmacy pays the stockist | Exclusive of GST |
| MRP — Maximum Retail Price | Patient pays the pharmacy | Inclusive of GST |
Because MRP already contains GST and PTR does not, GST has to be removed before the retail margin is taken off. Working backwards from MRP:
The formula published on most trade blogs is simply PTR = MRP ÷ 1.20. That skips GST entirely. On a ₹100 pack at 5% GST it returns ₹83.33 instead of ₹79.37 — about 5% too high — and the error compounds when you use it to work out PTS or to check a distributor's rate. The second common error is applying the margin to MRP rather than to PTR; margin in Indian pharma trade is quoted on PTR.
A pharmacy in Bangalore is offered a strip at ₹79.40 by a new stockist. The pack MRP is ₹100 and the medicine is at 5% GST. At the standard 20% retail margin the correct PTR is ₹79.37 — so the offer is at the normal trade rate, not a discount. Had the chemist used the ₹83.33 figure from a blog, the same offer would have looked like a 5% saving that does not exist.
A stockist buys at a PTS of ₹72.15 and wants the usual 10% on it. That puts PTR at ₹79.37, which on a 20% retail margin and 5% GST supports an MRP of ₹100. Running it in this direction is the quick way to check whether a proposed MRP leaves room for both margins before committing to a launch price.
A scheme of 10+1 free on the same ₹100 pack lowers the effective PTR from ₹79.37 to about ₹72.15 across the eleven units, which is roughly the stockist's own buying price. That is the real comparison to make — not the headline discount percentage, but the effective per-unit cost after free goods, against the PTR you would otherwise pay.
PTR is not only a purchasing number. It is the cost basis for gross margin per pack, it is what a GST input credit is claimed against, and it is the figure that decides whether a slow-moving line is worth restocking at all. A pack bought near MRP leaves almost nothing once expiry losses and locked working capital are counted — which is why margin and expiry are the same conversation in practice, not two separate ones.
The 20% retailer and 10% stockist figures are common trade conventions, not statutory rates — DPCO-controlled products, PCD and franchise arrangements, and individual supply agreements all differ. GST slabs on medicines were revised in September 2025; confirm the current rate for your product's HSN code. This calculator is a reference aid, not tax, pricing or legal advice. Always reconcile against your actual purchase invoice.
Price to Retailer — what a stockist charges a retail pharmacy for a pack, before GST. It is the number the chemist's purchase invoice is built on.
Price to Stockist — what the manufacturer or marketing company charges the stockist, also before GST. Company → stockist is PTS, stockist → retailer is PTR, retailer → patient is MRP.
Divide MRP by the retail margin factor, then by the GST factor. At 20% margin and 5% GST: ₹100 ÷ 1.20 ÷ 1.05 = ₹79.37.
Exclusive. GST is added on top of PTR on the purchase invoice. MRP is inclusive, because it caps what a patient can be charged.
Around 20% on PTR, with roughly 10% for the stockist. Conventions, not statute — DPCO-controlled and PCD products vary.
Most formulations are at 5%, some at 12% or 18%, and a set of life-saving drugs at nil. Rates were revised in September 2025, so older articles may quote slabs that no longer apply. You can look up a specific medicine's HSN and slab with the medicine GST calculator.
Usually one of three things: margin applied to MRP instead of PTR, GST left out of the chain, or a scheme/free-goods adjustment changing the effective rate.
No. Everything runs in your browser. Nothing is sent to a server, stored or logged, so you can use real purchase prices safely.
Nesayo stores the purchase rate on every batch, so gross margin per pack is already there when you bill — alongside FEFO expiry control and GST-correct invoices. Billing is free, with no invoice limit and no card.
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