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In the world of maths as well as business, Profit and Loss comes as a part and parcel of it. Furthermore, the Profit and Loss you make is calculated via various Formulas of Profit and Loss. Moreover, these Formulas make calculations simpler and give you the answers to the Profit and Loss questions. In this blog, you will learn All the Formulas of Profit and Loss such as the Profit and Loss Percentage Formulas and Selling and Cost Price Formulas along with each of their Examples.
Also Read: Profit and Loss Formula Questions
Formula of Profit
The Formula of Profit is:
Profit = Selling Price (SP) – Cost Price (CP) (when SP is greater than CP)
Example: Let us say that you buy a book for ₹10 (CP) and sell it for ₹15 (SP).
Thus, your Profit = ₹15 – ₹10 = ₹5.
Formula of Loss
In addition, the Formula of Loss is:
Loss = Cost Price (CP) – Selling Price (SP) (when CP is greater than SP)
Example: If you buy a blue shirt for ₹20 (CP) but only sell it for ₹18 (SP), you are in a loss.
Hence, Loss = ₹20 – ₹18 = ₹2.
Also Read: 11+ Profit and Loss CAT Previous Year Questions
Profit Percentage Formula
Moreover, the Profit Percentage Formula is:
Profit Percentage (%) = (Profit / Cost Price) x 100
Example: If we continue with the book example the Profit = ₹5 and the Cost Price = ₹10
Therefore, the Profit Percentage = (₹5 / ₹10) x 100 = 50%.
Loss Percentage Formula
Furthermore, the Loss Percentage Formula is:
Loss Percentage (%) = (Loss / Cost Price) x 100
Example: Since the blue shirt was at a Loss = ₹2 as the Cost Price = ₹20
Thus, the Loss Percentage = (₹2 / ₹20) x 100 = 10%
Also Read: 20 + Profit and Loss Questions and Answers
Selling Price (SP) if Profit is Made Formula
The Selling Price if Profit is Made Formula is:
SP = Cost Price (CP) + Profit
Example: If a phone costs ₹100 (CP) and you want to make a ₹20 profit then the Selling price should be SP = ₹100 + ₹20 = ₹120.
Selling Price (SP) if Loss is Made Formula
Moreover, the Selling Price if Loss is Made Formula is:
SP = Cost Price (CP) – Loss
Example: If a brown jacket costs ₹300 (CP) but you can only sell it for a ₹50 loss hence the Selling price would be SP = ₹300 – ₹50 = ₹250.
Also Read: Average Cost Questions: Formulas and Solved Examples
Cost Price (CP) if Profit is Made
In addition, the Cost Price if Profit is Made Formula is:
CP = Selling Price (SP) – Profit
Example: You sell a toy for ₹40 (SP) with a ₹10 profit.
Thus, the Cost price must have been CP = ₹40 – ₹10 = ₹30.
Cost Price (CP) if Loss is Made
Furthermore, the Cost Price if Loss is Made Formula is:
CP = Selling Price (SP) + Loss
Example: When you buy a pair of shoes for a ₹20 loss (Loss) and Sell them for ₹80 (SP) means the Cost price was CP = ₹80 + ₹20 = ₹100.
Thus, these were all the Formulas of Profit and Loss with an Example for each Formula.
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I hope this helps! Did you like learning about the Formula of Profit and Loss? Keep reading our blogs to learn more about the Basic Concepts of Maths!