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).
Your numbers
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 price | Equivalent markup on cost | Cost ₹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.
More Pharma Business Calculators
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