MRP calculator: from cost to MRP, and from MRP to PTR and PTS
This MRP calculator prices a product through the Indian trade chain. Start from your cost, add your markup, the stockist’s and retailer’s margins and GST, and it gives the MRP to print on the pack — rounded the way you choose — with the price to stockist (PTS) and price to retailer (PTR) that go with it. Or switch to MRP → PTR & PTS to work backwards from a printed MRP, as pharmacists and medical representatives do every day.
Presets cover the common medicine margins (retailer 20% of MRP before GST, stockist 10% of PTR), the DPCO ceiling-price basis (16% on PTR) and an FMCG example; every figure stays editable because margins are set by trade agreements. The table shows each stage before and after GST and who earns what. It runs in your browser and is a pricing aid, not legal or tax advice.
How to use the MRP Calculator
- Choose Cost → MRP to set a price, or MRP → PTR & PTS to break one down.
- Pick a margin preset, then check the GST rate and the retailer and stockist margins and their basis.
- For Cost → MRP, enter your cost per unit before GST, your markup and how to round the MRP.
- For MRP → PTR, enter the MRP printed on the pack (and your cost, if you want your own margin).
- Read the MRP, PTR, PTS and margins in the results and the price-chain table, and copy it if you need to share it.
MRP Calculator features
Both directions
Cost to MRP for pricing a launch; MRP to PTR and PTS for billing and claims.
GST handled correctly
MRP includes GST; PTS and PTR are quoted before GST, as on trade invoices.
Margin bases that match practice
Retailer margin as % of MRP before GST or as a markup on PTR; stockist margin as % of PTR or a markup on PTS.
Rounding that stays honest
Round the MRP up to a rupee, 50 paise or a price ending in 9 — PTR and PTS are recalculated from the printed MRP.
Every margin shown
Rupees per unit and percentages for the retailer, stockist and you.
MRP, PTR and PTS formulas
From MRP: MRP before GST = MRP ÷ (1 + GST), PTR = MRP before GST × (1 − retailer margin), PTS = PTR × (1 − stockist margin). A medicine with an MRP of ₹120 at 5% GST is ₹114.29 before GST; with a 20% retailer margin the PTR is ₹91.43, and with 10% to the stockist the PTS is ₹82.29.
From cost: PTS = cost × (1 + your markup), PTR = PTS ÷ (1 − stockist margin), MRP = PTR ÷ (1 − retailer margin) × (1 + GST). A cost of ₹60 with a 30% markup gives PTS ₹78, PTR ₹86.67 and an MRP of ₹113.75, printed as ₹114.
A margin of 20% of the selling price is the same as a markup of 25% on the purchase price — the Department of Pharmaceuticals noted exactly this when describing the usual chemist margin as “20% of MRP, which effectively works out to 25% of the PTR”. Mixing the two up is the most common pricing mistake; use the markup calculator or the profit margin calculator to convert between them.
GST and the MRP rule
Under the Legal Metrology (Packaged Commodities) Rules, 2011, the retail sale price is the maximum price at which a packaged commodity may be sold to the consumer, and the pack must say it is inclusive of all taxes. Each seller in the chain charges GST on its own price and takes credit for the GST it paid, so the total GST collected equals the GST inside the MRP — ₹5.71 on a ₹120 medicine at 5%. To add or remove GST from any single price, use the GST calculator.
Since 22 September 2025 the main GST rates are 5% and 18%, with 40% for a short list of demerit goods; most medicines moved from 12% to 5% and some life-saving drugs to nil. Check your product’s HSN rate before printing an MRP.
Typical margins (examples, not rules)
| Trade | Retailer | Stockist / distributor | Notes |
|---|---|---|---|
| Branded medicines | 20% of MRP before GST (25% on PTR) | 10% of PTR | Common trade practice |
| Scheduled medicines (ceiling price) | 16% on PTR | — | DPCO, 2013 paragraph 4 method |
| FMCG (example) | 10–20% | 5–10% | Varies by brand, category and channel |
MRP Calculator FAQ
How do I calculate MRP from cost?
Add your markup to get PTS, gross it up for the stockist and retailer margins to get PTR and MRP before GST, then add GST. The MRP calculator does this and rounds the result.
How is PTR calculated from MRP?
Remove GST from the MRP, then deduct the retailer margin. At ₹120 MRP, 5% GST and a 20% margin, PTR = 120 ÷ 1.05 × 0.8 = ₹91.43.
How is PTS calculated?
PTS is usually PTR less the stockist margin — PTR × 0.90 for a 10% margin. ₹91.43 becomes ₹82.29.
Is MRP inclusive of GST?
Yes. The Legal Metrology rules require the MRP to be the maximum retail price inclusive of all taxes. PTR and PTS on invoices are before GST.
What is the retailer margin on medicines in India?
Commonly 20% of the MRP before GST (25% on PTR); the DPCO ceiling-price method assumes 16% on PTR. Trade agreements decide the actual figure.
Does this work for FMCG products?
Yes. Pick the FMCG example or enter your own margins and GST rate.