Medicine MRP & Margin Calculator (India)

About the Medicine MRP & Margin Calculator (India)

Works out the prices of a medicine along India’s supply chain — from the MRP printed on the pack to the price to retailer (PTR) and the price to stockist (PTS), or back from the PTR or the PTS to the MRP — with every step of the arithmetic shown. Enter the GST rate on your bill and the margins your trade uses, either as a margin of the selling price or as a markup on cost, and see the GST included in the MRP, each margin in rupees and in both kinds of per cent, and what the retailer pays with GST.

It also works out the real margin of a trade scheme such as 10 + 1, the prices of one tablet or millilitre, and whether an MRP or a selling price stays within a ceiling price you enter from NPPA’s notification, using the terms of the Drugs (Prices Control) Order, 2013. It holds no price list: every price is yours. Without a pass it shows a free preview: the price to retailer (or the MRP) in full with the rules and checks, the other figures hidden; the full working, its PDF and the copied text unlock with a Pro pass.

Common uses

• A retailer checking the margin a stockist’s bill really leaves on a medicine’s MRP.
• A stockist or company setting the PTR and PTS for a new product from its MRP and the usual margins.
• Comparing a 10 + 1 or 12 + 2 scheme with a plain discount.
• Checking a scheduled formulation’s MRP against the ceiling price NPPA notified.

The terms, as DPCO 2013 defines them

• Price to retailer (PTR): the price at which a drug is sold to a retailer, including duties and excluding local taxes such as GST (para 2(1)(y) of the Drugs (Prices Control) Order, 2013).
• Maximum retail price (MRP): the ceiling price or the retail price plus local taxes, at which the drug is sold to the consumer and which is printed on the pack (para 2(1)(r)); para 8 writes it as MRP = ceiling price + local taxes as applicable.
• Margin to retailer: a percentage of the price to retailer (para 2(1)(p)).
• The price to stockist (PTS) is the trade’s own term for the price at which the stockist buys; DPCO 2013 does not define it.

How each price is worked out

• MRP excluding GST = MRP ÷ (1 + GST rate).
• With a margin of the selling price: PTR = MRP excluding GST × (1 − margin), and back: MRP excluding GST = PTR ÷ (1 − margin).
• With a markup on cost: PTR = MRP excluding GST ÷ (1 + markup), and back: MRP excluding GST = PTR × (1 + markup).
• The same steps give the PTS from the PTR with the stockist’s margin.
• A scheme of b + f: each pack costs PTR × b ÷ (b + f).

The prices are worked out exactly and rounded to the paisa only when they are shown, so a 20% margin shows as exactly 20%; a figure worked out from two rounded figures may differ by a paisa.

Ceiling prices of scheduled formulations

NPPA fixes a ceiling price for each scheduled formulation (a medicine in the first schedule of DPCO 2013, from the National List of Essential Medicines) for one unit — a tablet, a capsule, a millilitre. It is the average price to retailer of the brands with at least 1% of the market, with a 16% margin to the retailer added (paras 4 and 7). The MRP of a pack may not be more than the ceiling price plus GST (paras 8 and 13), and no manufacturer may sell a scheduled formulation above it (para 14). Look up the current ceiling price of your formulation in NPPA’s own notifications on nppa.gov.in and enter it here; the calculator then shows the highest MRP it allows for your pack.

GST on medicines

Medicaments of headings 3003 and 3004 — including Ayurvedic, Unani, Siddha, homoeopathic and bio-chemic medicaments — are in Schedule I of Notification No. 9/2025-Central Tax (Rate): 2.5% CGST and 2.5% SGST within a State, or 5% IGST. The drugs in Annexure I of Notification No. 10/2025-Central Tax (Rate) are exempt. Use the rate printed on your supplier’s bill; “Another rate” takes any other.

Limitations

• It holds no prices: ceiling prices, MRPs and margins come from you, from NPPA’s notifications and from your bills.
• Trade margins are agreed in the trade, not set by law for most medicines; the 20% and 10% shown at the start are only example values.
• GST is worked out on the price you enter at the rate you pick; it does not decide which rate applies to a product.
• It works on one pack at a time; for a whole bill or the stock, use a stock register.

Privacy

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot. Only the PDF of the working downloads its engine and fonts from this site the first time; your prices never leave this browser.