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Margin and MRP calculator

, founder of Mira · 2 September 2026

Type your MRP, the GST rate, the margins the trade asks for and your landed cost. It shows what one unit leaves you. The second half runs it backwards: the MRP you would have to print to keep a margin.

Your numbers

MRP, GST, the margins the trade expects, and what one packed unit costs you.

Since 22 September 2025 packaged snacks, biscuits, chocolate and instant coffee are 5 per cent, and skincare is 18. Check tea, matcha and flavoured preparations against your own product.
Taken on the price before GST. A store that says 20 on MRP means a little more than 20 here. 15 to 30 for packaged food in general trade, up to 45 for skincare.
3 to 8 for packaged goods, 8 to 15 for confectionery, 15 to 20 for branded cosmetics.
Everything it costs you to have one finished, packed unit in your store.
A temporary cut off the price to the retailer. Leave it at 0 for the standing price.

What happens to the money

One unit, from the printed price down to your bank.

Price before GST
₹238.10
GST sitting inside the MRP
₹11.90
Retailer's margin
₹47.62
Price to retailer
₹190.48
Distributor's margin
₹13.33
Price to distributor, which is your selling price
₹177.14
Your gross margin per unit
₹82.14
As a share of your selling price
46.4 per cent
As markup on landed cost
86.5 per cent

You keep ₹82.14 of every ₹250.00 unit.

Working backwards

You know what you need to keep per unit. This gives the MRP that leaves it.

The MRP that carries it

Rounded up to the nearest ₹5, because a printed price is a round number.

Print ₹220.00 to keep ₹60.00 a unit. The exact figure is ₹218.75.

Your selling price has to be
₹155.00
Price to retailer
₹166.67
Price before GST
₹208.33

How the money splits

GST sits inside the MRP by law, so it comes out first: MRP divided by one plus the rate. The store takes its margin on that ex-GST price, a scheme comes off next, and the DB (the distributor who bills the store) takes its cut on what it sells. What is left is your price, and your landed cost comes off that.

I quote a store its margin in rupees on MRP, because that is the number the owner counts at the till. A store asking for 20 on MRP is asking for a little more than 20 here, since it is taken on the price before tax.

base = MRP ÷ (1 + GST)
PTR = base − retailer margin
schemed = PTR × (1 − scheme)
PTD = schemed − distributor margin
your margin = PTD − landed cost

What it does not know

  • A café that uses your product as an ingredient buys at one flat price and prices the cup itself. Tick the no-distributor box and ignore the retailer line.
  • Freight per drop. Twelve units three kilometres away and twelve forty kilometres away are two different costs.
  • Expiry returns and dead stock: a carton that comes back has cost you twice.
  • Credit. Every day between delivery and payment is money you lent the store, and I give none on a first order.

Words the trade uses

MRP
The printed price, all taxes inside. A ceiling by law under the Legal Metrology rules, never a floor: a store may sell under it. Rule 2(m) of the Legal Metrology (Packaged Commodities) Rules, 2011 is the line that says so.
PTR, PTD
Price to retailer, price to distributor. PTD is your selling price when a DB is in the chain.
Landed cost
Everything it costs to have one finished, packed unit sitting in your own store.
Scheme
A temporary cut to the trade, off the PTR. One clean 10+1 beats three clever slabs.
Margin against markup
Same rupees, two denominators. Markup always reads bigger, so say which one you mean.

Whether a DB belongs in your chain at all is argued out in distributor or direct to retail.