Free Pharma Scheme & Profit Calculator
Calculate effective selling rate, gross profit and free-goods schemes in seconds.
Enter Rates & Scheme
Enter your actual commercial rates. Calculations update instantly.
Trade Rate Reference (PTR, PTS & GST Details)
Commercial trade rates are calculated from MRP using applicable GST and margins:
- MRP: ₹320.00 (inclusive of GST).
- PTR: ₹243.81 (Price to Retailer, calculated via
Base PTR = MRP / (1 + GST%/100) × (1 - Retailer Margin%)). - PTS: ₹219.43 (Price to Stockist, calculated via
PTR × (1 - Stockist Margin%)).
Your Scheme Results
10 + 1 SchemeHow Much Free Scheme Can I Offer?
Margin SafeguardExplain My Calculation / पूरा हिसाब समझें Click to view step-by-step
Here is how your ₹1,726.80 gross profit was calculated:
View Technical Formulas & Logic
Total Delivered = Billed Quantity + Free Units
Total Cost = Total Delivered × My Cost
Gross Profit = Revenue − Total Cost
Gross Margin % = (Gross Profit / Revenue) × 100
Effective Selling Rate = Revenue / Total Delivered
Break-even Rate = Total Cost / Billed Quantity
Max Allowable Cost = Revenue × (1 − Target Margin / 100)
Max Affordable Total Units = floor(Max Allowable Cost / My Cost)
Max Free Units = Max Affordable Total Units − Billed Quantity
Advanced: Compare Two Alternative Schemes (A vs B)
Compare profitability and effective realization between 10+1 and 10+5 at your current rates:
Eff. Selling: ₹ 199.48 | Break-even: ₹ 46.75
Eff. Selling: ₹ 146.29 | Break-even: ₹ 63.75
Commercial Safeguard Notice
Gross profit is before operating expenses, interest, expiry losses, freight and other business costs. This calculation engine is provided by Aerochem Neutron for commercial estimation only. Rates are evaluated on a GST-exclusive trade basis. Formal supply terms and credit agreements are subject to direct written commercial contracts.
Distributor Guide to Scheme Profitability
Essential practical principles for Indian pharmaceutical stockists and PCD franchise partners.
1. Free Goods are Funded from Your Margin
When you offer a 10+1 or 10+5 scheme to a chemist, you pay for the bonus stock out of your own inventory. Revenue comes only from billed units, which directly reduces your gross trading spread.
2. The Steep Cost of Excessive Schemes
At an ₹80 cost and ₹100 selling price, moving from 10+1 to 10+2 cuts your gross profit from ₹120 to ₹40 — a 66.7% profit drop for supplying just one additional complimentary strip.
3. Effective Selling vs. Billed Price
A ₹219.43 billed price under a 10+1 scheme delivers 11 strips for ₹2,194.30 revenue. Your true effective realization is ₹199.48 per strip delivered. With 10+5, it drops to ₹146.29.
4. Guard Your Break-Even Selling Rate
Your break-even price is Total Cost divided by Billed Quantity. If delivering 11 strips costs ₹467.50 on a 10-pack bill, billing below ₹46.75 creates an active commercial loss.
5. Scheme vs. Cash Discount (CD)
A 5% prompt-payment Cash Discount leaves predictable cash flow and protects inventory. Free-goods schemes tie up valuable stock and can encourage retail dumping.
6. Setting Volume Commitments
Never offer schemes on small split orders. Restrict schemes to minimum order quantities (MOQs) of 20 or 50 packs to ensure the absolute rupee profit covers your delivery and handling expenses.
Frequently Asked Questions
What is the difference between MRP, PTR, PTS, Selling Rate and My Cost?
MRP is the Maximum Retail Price inclusive of GST. PTR (Price to Retailer) is the benchmark trade price to chemists before scheme discounts. PTS (Price to Stockist) is the manufacturer billing rate to distributors. Selling Rate is the actual GST-exclusive price per billed unit you charge the customer. My Cost is your actual landed cost per delivered unit from the company. Scheme profitability must always be calculated using actual Selling Rate and My Cost.
How does a 10+1 or 10+5 scheme affect my effective selling rate and profit?
Under a scheme, free bonus strips come out of your paid inventory. For example, on MYOSIN-XT billed at ₹219.43 with landed cost ₹42.50: A 10+1 scheme delivers 11 strips for ₹2,194.30 revenue (effective realization ₹199.48/strip), costing ₹467.50 and leaving ₹1,726.80 gross profit (78.69% margin). A 10+5 scheme delivers 15 strips (effective realization ₹146.29/strip), costing ₹637.50 and leaving ₹1,556.80 gross profit (70.95% margin).
How does the calculator determine the maximum scheme I can offer?
It calculates your maximum allowable inventory cost based on your desired minimum gross margin: Max Allowable Cost = Revenue × (1 - Minimum Margin %). It then computes the maximum delivered units you can afford: floor(Max Allowable Cost / My Cost), and subtracts your billed quantity to find your maximum free bonus strips while protecting your profit target.
What is the Break-even Selling Rate?
The Break-even Selling Rate is the minimum rate per billed pack you must charge to cover the purchase cost of all delivered packs (including free bonus packs): Break-even Rate = Total Cost / Billed Quantity. Selling below this rate causes an immediate commercial loss.
Is Gross Profit my final net earnings?
No. Gross profit is calculated before operating expenses, sales allowances, warehouse storage, interest, credit financing costs, freight and expiry losses. Operating overheads must be funded from this gross margin.
Can I share scheme details with chemists without showing my confidential margins?
Yes. This calculator provides two distinct WhatsApp copy buttons: Copy Offer for Retailer (public, shows billing rate, scheme, and chemist savings without revealing your cost or margins) and Copy Private Business Summary (internal distributor records).
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