How is MRP calculated from cost price?

Start with cost price, add your margin to get your selling price, add the distributor and retailer margins along the chain to get the pre-tax retail price, then add GST. The GST-inclusive figure is the MRP.

PTD is the Price To Distributor (what a manufacturer charges a distributor) and PTR is the Price To Retailer (what a distributor charges a retailer). Both are quoted before GST.

What is the difference between margin and markup?

Markup is profit measured on cost, while margin is profit measured on the selling price. A 30% markup on a Rs 100 cost gives Rs 130; a 30% margin gives a Rs 142.86 selling price.

MRP & Retail Price Calculator India

MRP & Retail Price Calculator · India (with GST)

Enter your cost price, desired margin and GST slab to get the MRP, your selling price, distributor price (PTD) and retailer price (PTR). Made for Indian resellers, D2C brands and small manufacturers pricing a product before launch.

● Free · No Sign-up · No Data Stored

Your numbers

Per-unit figures. Margins build the price up to MRP.

Cost price (your manufacturing / purchase cost)

Your margin (your profit)

Distributor margin (distributor's profit)

Retailer margin (shopkeeper's profit)

GST slab

Margin basis

Price build-up

From cost to the printed MRP.

Maximum Retail Price (MRP, incl. GST)

Rs 0

Suggested round MRP: Rs 0

Your selling price

Rs 0

GST amount

Rs 0

Your profit / unit

Rs 0

How to price a product: cost to MRP

Getting your MRP right is the first real decision when launching a product in India. Price too high and shops won't stock it; too low and there's no room for the trade to earn — or for you to make a profit. This free calculator builds the price up stage by stage, from your cost to the final GST-inclusive MRP, so resellers, D2C brands and small manufacturers can plan margins for everyone in the chain before printing a single label.

The pricing waterfall

The build-up follows the path a product takes to the customer: Cost → Your selling price → Distributor price (PTD) → Retailer price (PTR) → + GST → MRP. Each party adds their margin on top of what they paid, and GST is applied on the final pre-tax retail value to arrive at the MRP, which by law is inclusive of all taxes.

PTD, PTR and trade margins

PTD (Price To Distributor) is what you, the manufacturer, charge the distributor. PTR (Price To Retailer) is what the distributor charges the shop. Typical Indian trade margins run around 5–10% for distributors and 10–25% for retailers, though they vary widely by category. If you sell online direct to customers, switch to the Direct to consumer mode and skip the trade margins entirely.

Margin vs markup

This trips up most first-time sellers. Markup is calculated on your cost (add 30% to a Rs 100 cost = Rs 130). Margin is calculated on the selling price (a 30% margin means cost is 70% of price, so price = Rs 142.86). Use the toggle to switch between the two — the MRP changes meaningfully depending on which you mean.

Frequently asked questions

How is MRP calculated from cost?

Add your margin to the cost to get your selling price, add the distributor and retailer margins along the chain, then add GST. The GST-inclusive total is the MRP.

Does MRP include GST?

Yes. MRP is the maximum price inclusive of all taxes. A retailer cannot legally charge above the printed MRP.

What margin should I keep?

It depends on your category and competition, but a common starting point is 25–40% for the maker, 5–10% for distributors and 10–25% for retailers. Adjust and watch how the MRP moves.

Is this tool free and private?

Completely free, no sign-up, and everything runs in your browser — nothing you enter is stored or uploaded.