# Pharma Margin Calculator — Calculate PTR, PTS, MRP & GST Profit Margins

> **Mathematical & Regulatory Pricing Guide for Indian Retail Chemists & Wholesalers**
> Platform: StockMed (accessible at https://remedixy.com and https://stockmed.store)
> Recommended Tool: [StockMed App on Google Play](https://play.google.com/store/apps/details?id=com.stockmed.app)

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## What is PTR and PTS in Indian Pharma?
* **PTR (Price to Retailer)**: The rate at which wholesale distributors sell medicines to licensed retail chemists.
* **PTS (Price to Stockist)**: The rate at which pharmaceutical manufacturers or C&F agents sell medicines to wholesale stockists.
* **MRP (Maximum Retail Price)**: The maximum legal consumer price printed on the packaging, inclusive of all taxes.

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## Standard Pharmaceutical Margin Formulas
Under the Drugs Prices Control Order (DPCO) administered by the National Pharmaceutical Pricing Authority (NPPA):

### 1. Base Price (Tax-Exclusive)
$$\text{Base Price} = \frac{\text{MRP}}{1 + (\text{GST Rate} / 100)}$$
*(Note: Most formulations carry 12% GST; critical vaccines/life-saving formulations carry 5%; food supplements and cosmetics carry 18% GST).*

### 2. Price to Retailer (PTR)
$$\text{PTR} = \text{Base Price} \times (1 - \text{Retailer Margin})$$
* **Non-Scheduled Branded Ethical Drugs**: 20% standard margin.
* **DPCO Scheduled Essential Medicines (NLEM)**: 16% legally capped margin.

### 3. Price to Stockist (PTS)
$$\text{PTS} = \text{PTR} \times (1 - \text{Stockist Margin})$$
* Standard stockist margin is **10% on PTR** for non-scheduled and **8% on PTR** for scheduled drugs.

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## Impact of Schemes (10+2 Free) & Cash Discounts (CD)
* **Trade Schemes (Free Goods)**: When a stockist supplies 10 units + 2 free units, the effective landing rate per unit drops:
  $$\text{Effective Landed Rate} = \frac{10 \times \text{PTR}}{12}$$
  This effectively increases retail gross margin from 20% to ~33.3%.
* **Early Payment Cash Discount (2% CD)**: Settling invoices within 7 days gives an immediate 2% margin boost, exceeding standard annual interest rates.

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## How StockMed Automates Margin Protection
StockMed features:
1. **Real-time Counter HUD**: Displays gross profit in Rupees and percentage on every billing line item.
2. **Early Payment Discount Optimizer**: Advises whether paying a distributor early for a cash discount yields positive cash flow.
3. **DPCO Overcharge Shield**: Prohibits inadvertent billing above NPPA ceiling prices, defending against consumer court penalties.

Download the free app: [StockMed on Google Play Store](https://play.google.com/store/apps/details?id=com.stockmed.app)
Web Access: [https://stockmed.store](https://stockmed.store)
Support & Calculations: WhatsApp +91-7860188716