Use the coupon TOP10 on all products

Join here

Profit and loss Formulas

Published on Tuesday, November 07, 2017
Profit and loss problems involve various terms like Cost price, Selling price, Marked price and Discount etc. Basically, it is a difference between selling price and cost price.

Cost price is the price paid to purchase an article or a product or we can say it is a cost incurred in manufacturing an article. 

Selling price is the price at which a product is sold.

6 Commonly used Profit and loss Formulas :

1) Calculation of Profit:

Profit or gain = Selling price(S.P) - Cost price(C.P)
in other ,
⇒ Selling Price = Cost Price + Profit

2) Calculation of Loss

Loss = Cost price - Selling price

3) Calculation of Gain percentage(%)

profit percentage formula

4) Calculation of Loss percentage(%)

loss percentage

5) Finding relationship between selling price and cost price:

relationship between selling price and cost price
direct relationship between selling price and cost price
For Example: If an article is sold at a gain of 27%, then by using the first formula, you can find that S.P. is 127% of C.P.
Similarly, If an article is sold at loss of 18%, then by using the second formula, you can find that S.P. is 82% of C.P.

6) Finding Combined Profit/Loss on sale of Two products 

If a person sells two commodities at same prices. On one he gains x% and loses x% on another, then as a whole he will be in loss and the loss percentage will be equal to:
common gain percentage

Note: Here is an example to find gain in case of dishonesty.
Problem 1: A dishonest dealer professes to sell his goods at cost price but he uses a weigh 960 grammes for 1 kg. How to calculate the gain percentage?
Solution: 
error true value



Can I help you?

ramandeep singh

Hey I am Ramandeep Singh. I am determined to help students preparing for RBI, SEBI, NABARD and IBPS exams. Do you want me to help you ?

Join my class here
    Follow me:
Close Menu
Close Menu