Free pharma tool

Pharma Profit Margin Calculator

Find your profit, margin and markup on any medicine — including free-quantity schemes like 10+1. Or enter your cost and the margin you want, and get the selling price you should quote. Made for PCD franchise distributors, stockists and chemists.

What do you want to find?

All prices excluding GST, per unit (strip / bottle / vial).

₹
e.g. your PTS from the company
₹
e.g. PTR you sell to chemists at
₹
freight, promotion, etc.

Your numbers

Margin—
Markup—
Profit per unit—
Selling price—
Effective cost per unit—
Scheme benefit—
Total revenue—
Total cost—
Total profit—

Margin = profit ÷ selling price. Markup = profit ÷ cost. A 20% margin equals a 25% markup.

Margin vs markup — the difference that confuses everyone

Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. Pharma companies usually quote trade margins on the selling price, while DPCO rules for scheduled drugs work as a markup on cost — so always ask which one a rate list uses.

Margin on selling priceEquivalent markup on costCost ₹100 → Selling price
10%11.1%₹111.11
16%19.0%₹119.05
20%25.0%₹125.00
25%33.3%₹133.33
30%42.9%₹142.86

Formulas

  • Profit = Selling price − Cost
  • Margin % = Profit ÷ Selling price × 100
  • Markup % = Profit ÷ Cost × 100
  • Selling price for a target margin = Cost ÷ (1 − Margin %)
  • Effective cost with a scheme (buy X get Y free) = Cost × X ÷ (X + Y)

How free-quantity schemes change your margin

A “10+1” scheme means you pay for 10 units and receive 11. Your effective cost per unit drops by about 9.1%, which lifts your margin even though the invoice price is unchanged. Enter the scheme above to see the real margin.

FAQ

Profit margin — FAQs

In the PCD franchise model, stockists typically work on around 10% of PTR and retailers around 20% of MRP excluding GST. Franchise partners who buy at PTS and sell at PTR with schemes can earn considerably more.
Divide cost by (1 − margin). For a cost of ₹60 and a 20% margin: 60 ÷ 0.80 = ₹75.
No. Margin is based on the selling price; markup is based on the cost. A 20% margin is a 25% markup.
No. Use prices excluding GST. GST is collected and passed on to the government, so it is not part of your profit.
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