Welleza Healthcare Team
Reviewed by the Welleza Healthcare team · WHO-GMP & ISO 9001:2017 certified, est. 2017 · 15 October 2025
If you're new to pharma franchise, PTR and PTS can feel like jargon designed to confuse you. They're not — they're just two prices in the supply chain. Once you understand them, you can work out exactly what you'll earn on every product. This guide explains both, with the formulas and a worked example. You can also skip ahead to our free PTR/PTS calculator.
What is PTR (Price to Retailer)?
PTR is the price at which a stockist sells to a retailer (the pharmacy). It's derived from the MRP after removing GST and applying the retailer's margin. The formula we use is: PTR = MRP ÷ (1 + GST/100) × (1 − retailer margin/100).
What is PTS (Price to Stockist)?
PTS is the price at which the company (or distributor) sells to the stockist. It's the PTR reduced by the stockist's margin: PTS = PTR × (1 − stockist margin/100). This is effectively your cost when you operate as the stockist in a PCD model.
A Worked Example
Say a tablet has an MRP of ₹100, GST of 12%, a retailer margin of 20% and a stockist margin of 10%. PTR = 100 ÷ 1.12 × 0.80 = ₹71.43. PTS = 71.43 × 0.90 = ₹64.29. So the retailer's profit is roughly ₹28.57 on a ₹100 strip — about a 28% margin. Real numbers like these are why understanding the maths matters.
What Counts as a Healthy Margin?
In our experience, anything above 30% is excellent, 15–30% is solid, and below 15% is worth a second look. Our calculator colour-codes this for you so it's obvious at a glance.
Use the Free Calculator
Rather than doing this by hand, use our free PTR/PTS calculator — enter the MRP, GST and margins, and it shows PTR, PTS, net rate and profit instantly. No signup. If you'd like help pricing a specific range, just call us on +91 98286 31234 or look at our PCD franchise page.
Frequently Asked Questions
PTR stands for Price to Retailer — the price at which a stockist sells products to a retail pharmacy. It's calculated from the MRP after deducting GST and applying the retailer's margin.
PTS stands for Price to Stockist — the price at which the company or distributor sells to the stockist. It is the PTR reduced by the stockist's margin, and effectively represents the stockist's cost.
Use PTR = MRP ÷ (1 + GST/100) × (1 − retailer margin/100). For an MRP of ₹100 at 12% GST and a 20% retailer margin, PTR works out to about ₹71.43.
A margin above 30% is excellent, 15–30% is healthy, and below 15% deserves a closer look. Margins vary by product category — injectables and derma often carry higher margins than basic tablets.
Yes. The PTR/PTS calculator is completely free, needs no signup, and runs instantly in your browser. It's used by pharma professionals across Karnataka.
