# Formula of Profit and Loss: Percentages, Cost and Selling Price, Examples

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.

## 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%

## 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.

## Cost Price (CP) if Profit is Made

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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