Profit and Loss

Whenever we buy or sell a product, we get either profit or loss. Whenever the cost price is more than the selling price we get a loss. And whenever the selling price is more than the cost price of an article we get profit. In order to understand the profit and loss percentage, we need to know about some important aspects of profit and loss.

 Cost Price: Cost price means the price at which the article is purchased. The short form of cost price is CP. formulas to find cost price are as follows

CP=  SP - Profit 

CP = SP + Loss

Selling price:  Selling price means the price at which the article is sold. The short form of selling price SP. The formula to find SP is as follows: 

SP= CP + Profit

SP = CP - loss

Profit: whenever the selling price is more than the cost price there will be profit or gain.

SP > CP there will be profit. Formulas to find profit is as follows:

Profit = SP - CP

Loss: whenever the cost price is more than the selling price there will be a loss.  

SP < CP there will be a loss. Formulas to find loss are as follows: 

Loss = CP - SP

Profit Percentage: The formula to find the profit percentage is as follows: 

Profit percentages = Profit * 100 / CP 

For example: the cost price of a box of mangoes is Rs.2000. The selling price is Rs.3000. Find the percentage of profit or loss?

CP = ₹ 2000

SP = ₹ 3000 

SP > CP So there will be profit

Profit = SP - CP 

         = 3000 - 2000

Profit = 1000 

Profit Percentage = profit * 100 / CP 

                             = 1000 * 100 / 2000

                             = 50 % 

Loss percentage: The formula to find lost percentage is as follows: 

Loss  percentage = loss  * 100 / CP 

For example: the cost price of the box of pencils is Rs.500. The selling price is Rs.400. Find the percentage of profit or loss? 

CP= 500

SP= 400

SP< CP  so there will be loss

Loss= CP - SP

       = 500 - 400 

Loss= 100

Loss percentage = loss * 100 / CP 

                            = 100 * 100 / 500

                            = 20% 

Example: 

Mr. Shah purchased an old scooter for ₹55,000. He patopicId ₹ 5000 for repairing and painting it. Then he sold the scooter for ₹ 70200. Find profit or loss percentage? 

The cost price of the old scooter is Rs.55,000

The cost of repairing and painting is Rs.5000

So the net price =Rs.55,000 + Rs.5000

                          =₹ 60000

SP= ₹ 70200 

SP > CP so it will be profit 

Profit = SP - CP 

         = 70200 - 60000

         = 10200 

Profit Percentage = profit * 100 / CP

                             = 10200* 100 / 60000

                             = 17% 

Profit percentage of old scooter is 17%

Example: 

John purchased a bike for ₹ 78000. He then sold it for ₹ 59803. Find profit or loss percentage?

CP of bike = ₹ 78000

SP of bike = ₹ 59803

SP < CP so there will be loss

Loss= CP - SP 

       = 78000 - 59803

       = 18197

Loss percentage = loss* 100/ CP 

                           = 18197 * 100 / 78000

                           = 23.3294 % 

                           = 23.33% 

So the loss percentage of selling the bike is 23.33 %