Profit Margin Calculator
Expenses (If any)
Adjusted Purchase Value (₹): –
Adjusted Sale Value (₹): –
Net Profit (₹): –
Profit Margin (%): –
How to Use the Calculator
- Enter the Sale Value (₹) of the product.
- Enter the Purchase Value (₹) paid to acquire the product.
- Add any MR Expenses, Travel Expenses, Marketing Expenses, or Other Expenses (₹) if applicable.
- Enter the Scheme (%) offered.
- Enter the Cash Discount (%) applicable.
What is Profit Margin in Pharma Franchise?
In the pharma franchise business, profit margin is the actual amount a distributor or stockist earns after deducting all costs, discounts, and expenses from the sale value.
Accurately calculating profit margin helps businesses understand true earnings on each product, adjust pricing strategies based on real profits, and avoid hidden losses due to unaccounted expenses. This calculator makes it easier for pharma business owners to make better and more informed financial decisions.
Formulas Used
Net Profit = Sale Value − Purchase Value − (MR Expenses + Travel Expenses + Marketing Expenses + Other Expenses)
Scheme Adjusted Purchase Value = Purchase Value − (Purchase Value × (Scheme % ÷ 100))
Cash Discount Adjusted Sale Value = Sale Value − (Sale Value × (Cash Discount % ÷ 100))
Example Calculation
| Item | Value |
|---|---|
| Sale Value (₹) | ₹1,00,000 |
| Purchase Value (₹) | ₹80,000 |
| Scheme (%) | 10% |
| Cash Discount (%) | 2% |
| MR Expenses (₹) | ₹2,000 |
| Travel Expenses (₹) | ₹1,000 |
| Marketing Expenses (₹) | ₹1,500 |
| Other Expenses (₹) | ₹500 |
| Net Profit (₹) | ₹14,000 |