# Formulas For Profit And Loss

## Formulas for Profit and Loss Questions

Important Formulas for Profit and Loss are given here on this page.

Cost Price The price at which a commodity or object is bought at known as Cost Price

Selling Price The price at which the commodity is sold at known as Selling Price

What is Profit :- Ex.If a shopkeeper brings a cloth for Rs.100 and sells it for Rs.120, then he has made a profit of Rs.20/-.

What is Loss:- If a salesperson has bought a textile material for Rs.300 and he has to sell it for Rs.250/-, then he has gone through a loss of Rs.50/-.

### Formulas for Profit and Loss

• Cost Price – It is basically the price at which a commodity or object is bought at. e.g. Shopkeeper buying Sugar from Farmer to sell in his grocery store. In its short form it is denoted as C.P.
• Selling Price – The price at which the commodity is sold at. e.g. Shopkeeper selling sugar to his customer. In its short form is denoted as S.P.
• Gain or Profit – If Cost Price is lesser than Selling Price, gain is made.
• Loss – If Cost price is greater than the Selling price, Loss is incurred.

### 1.  C.P in case of gain:

$\left (\frac{100}{100 + Gain} \right )\times S.P$

### 2.  C.P in case of Loss:

$\left (\frac{100}{100 – Loss} \right )\times S.P$

### 3. S.P in case of Gain:

$\left (\frac{100 + Gain}{100} \right )\times C.P$

### 4. S.P in case of Loss:

$\left (\frac{100 – Loss}{100} \right )\times C.P$

### Other Important Formulas

1. If you sell two items at same selling price “s” first at x% profit and 2nd one at x% loss. Then a loss is incurred always, which is given by

$( \frac{x}{10})^2$

2. Discount Percentage :

$\left ( \frac{Discount}{Marked \: Price} \right )\times 100$

3. Successive discounts:

If d1% , d2% d3%are successive discounts on marked price,
Selling price=marked price $\left ( \frac{100-d_{1}}{100}\right )\times \left ( \frac{100-d_{2}}{100}\right )\times \left ( \frac{100-d_{3}}{100}\right )$

Note:
(a) If there is no discount, the marked price is equal to the selling price
(b) Discount is always calculated on marked price unless otherwise stated.

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