Profit and Loss Some basic formulas to calculate Profit and Loss
Definitions Cost Price(C.P): The price at which an article is purchased,
is called its cost price.
Selling Price (S.P):The price at which an article is sold, is
called its Selling price.
Profit/Gain: If S.P is greater than C.P., seller is said to have a
profit or gain.
Loss: If S.P is less than C.P., the seller is said to have loss.
Formulas Gain=(S.P)-(C.P) Loss= (C.P)-(S.P) Gain ×100 Gain% = C.P
S .P =
Loss ×100 Loss % = C .P
(100 + Gain% )
S .P =
100
×C.P
(100 − Loss % ) 100
×C.P
100 C .P = ×S .P (100 +Gain% )
100 C .P = ×S .P (100 −Gain% ) When a person sells two similar items, one at a gain of x%, and the other at a loss of x%, then the seller always incurs a loss given by 2
CommonLossandGain% x Loss % = = 10 10
Clear understanding of profit and loss can help you to solve college algebra problems easily.
2
If a trader professes to sell his goods at cost price, but uses false weights, then
Error Gain% = × 100 % ( TrueValue ) − ( Error )
Simple formulas of Profit and Loss are helpful to solve math homework problems easily.