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Formulas For Profit And Loss

Formulas for Profit and Loss Questions

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

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

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/-.

Profit and Loss Formulas

• 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.

Formulas for Profit and Loss

1. Profit or Gain: SP – CP
2. Loss – CP – SP
3. Percentage Profit or Gain Percentage
Gain x 100
C.P.
4. Loss Percentage –
Loss x 100
C.P.
5. C.P in Case of Gain =
 (100) x S.P. (100 + Gain)
6. C.P in Case of Loss =
 (100) x S.P. (100 – Loss)
7. S.P in Case of Gain =
 (100 + Gain) x C.P. (100)
8. S.P in Case of Loss =
 (100 – Loss) x C.P. (100)
9. If you sell two same items, first at x% profit and 2nd one at x% loss. Then a loss is incurred always, which is given by = $( \frac{x}{10})^2$
10. Marked price and discount
• Selling price = marked price – discount
• Discount = marked price – selling price
• Marked price = selling price + discount

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.

11.Discount Percentage = (Discount/Marked price) x 100

12. Successive discounts:- If d1% , d2% d3%are successive discounts on marked price,
selling price=marked price $\left ( \frac{100-d_{1}}{100}\right )+\left ( \frac{100-d_{2}}{100}\right )+\left ( \frac{100-d_{3}}{100}\right )$

Read Also : Tips & Tricks to solve profit and loss.