{"id":826046,"date":"2024-05-10T12:28:43","date_gmt":"2024-05-10T06:58:43","guid":{"rendered":"https:\/\/leverageedu.com\/discover\/?p=826046"},"modified":"2024-05-10T12:28:43","modified_gmt":"2024-05-10T06:58:43","slug":"basic-concepts-formula-of-profit-and-loss","status":"publish","type":"post","link":"https:\/\/leverageedu.com\/discover\/school-education\/basic-concepts-formula-of-profit-and-loss\/","title":{"rendered":"Formula of Profit and Loss: Percentages, Cost and Selling Price, Examples"},"content":{"rendered":"\n

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.  <\/p>\n\n\n\n

Also Read: <\/strong>Profit and Loss Formula Questions<\/strong><\/p>\n\n\n\n\n\n

Formula of Profit<\/h2>\n\n\n\n

The Formula of Profit is:<\/p>\n\n\n\n

Profit = Selling Price (SP) – Cost Price (CP) (when SP is greater than CP)<\/strong><\/p>\n\n\n\n

Example:<\/strong> Let us say that you buy a book for \u20b910 (CP) and sell it for \u20b915 (SP). <\/p>\n\n\n\n

Thus, your Profit = \u20b915 – \u20b910 = \u20b95.<\/p>\n\n\n\n

Formula of Loss<\/h2>\n\n\n\n

In addition, the Formula of Loss is:<\/p>\n\n\n\n

Loss = Cost Price (CP) – Selling Price (SP) (when CP is greater than SP)<\/strong><\/p>\n\n\n\n

Example:<\/strong> If you buy a blue shirt for \u20b920 (CP) but only sell it for \u20b918 (SP), you are in a loss. <\/p>\n\n\n\n

Hence, Loss = \u20b920 – \u20b918 = \u20b92.<\/p>\n\n\n\n

Also Read: <\/strong>11+ Profit and Loss CAT Previous Year Questions<\/strong><\/a><\/p>\n\n\n\n

Profit Percentage Formula<\/h2>\n\n\n\n

Moreover, the Profit Percentage Formula is:<\/p>\n\n\n\n

Profit Percentage (%) = (Profit \/ Cost Price) x 100<\/p>\n\n\n\n

Example:<\/strong> If we continue with the book example the Profit = \u20b95 and the Cost Price = \u20b910<\/p>\n\n\n\n

Therefore, the Profit Percentage = (\u20b95 \/ \u20b910) x 100 = 50%.<\/p>\n\n\n\n

Loss Percentage Formula<\/h2>\n\n\n\n

Furthermore, the Loss Percentage Formula is:<\/p>\n\n\n\n

Loss Percentage (%) = (Loss \/ Cost Price) x 100<\/p>\n\n\n\n

Example:<\/strong> Since the blue shirt  was at a Loss = \u20b92 as the Cost Price = \u20b920<\/p>\n\n\n\n

Thus, the Loss Percentage = (\u20b92 \/ \u20b920) x 100 = 10%<\/p>\n\n\n\n

Also Read: <\/strong>20 + Profit and Loss Questions and Answers<\/strong><\/a><\/p>\n\n\n\n

Selling Price (SP) if Profit is Made Formula <\/h2>\n\n\n\n

The Selling Price if Profit is Made Formula is:<\/p>\n\n\n\n

SP = Cost Price (CP) + Profit<\/p>\n\n\n\n

Example:<\/strong> If a phone costs \u20b9100 (CP) and you want to make a \u20b920 profit then the Selling price should be SP = \u20b9100 + \u20b920 = \u20b9120.<\/p>\n\n\n\n

Selling Price (SP) if Loss is Made Formula<\/h2>\n\n\n\n

Moreover, the Selling Price if Loss is Made Formula is:<\/p>\n\n\n\n

SP = Cost Price (CP) – Loss<\/p>\n\n\n\n

Example:<\/strong> If a brown jacket costs \u20b9300 (CP) but you can only sell it for a \u20b950 loss hence the Selling price would be SP = \u20b9300 – \u20b950 = \u20b9250.<\/p>\n\n\n\n

Also Read: <\/strong>Average Cost Questions: Formulas and Solved Examples<\/strong><\/a><\/p>\n\n\n\n

Cost Price (CP) if Profit is Made<\/h2>\n\n\n\n

In addition, the Cost Price if Profit is Made Formula is:<\/p>\n\n\n\n

CP = Selling Price (SP) – Profit<\/p>\n\n\n\n

Example:<\/strong> You sell a toy for \u20b940 (SP) with a \u20b910 profit. <\/p>\n\n\n\n

Thus, the Cost price must have been CP = \u20b940 – \u20b910 = \u20b930.<\/p>\n\n\n\n

Cost Price (CP) if Loss is Made <\/h2>\n\n\n\n

Furthermore, the Cost Price if Loss is Made Formula is:<\/p>\n\n\n\n

CP = Selling Price (SP) + Loss<\/p>\n\n\n\n

Example:<\/strong> When you buy a pair of shoes for a \u20b920 loss (Loss) and Sell them for \u20b980 (SP) means the Cost price was CP = \u20b980 + \u20b920 = \u20b9100.<\/p>\n\n\n\n

Thus, these were all the Formulas of Profit and Loss with an Example for each Formula. <\/p>\n\n\n\n

Related Blogs <\/strong><\/p>\n\n\n\n

7 Types of Fractions with Examples<\/strong><\/a><\/td>What are Co Prime Numbers?<\/strong><\/a><\/td><\/tr>
How to Find Percentage of Marks?<\/strong><\/a><\/td>Multiplication Tables of 1 to 20<\/strong><\/a><\/td><\/tr>
Ordinal Numbers from 1 to 100!<\/strong><\/a> <\/strong><\/td>Table of 17: Multiples up to 20 & a Trick!<\/strong><\/a>  <\/td><\/tr>
Table of 12: Multiples up to 20!<\/strong><\/a><\/td>What is the HCF of Two Consecutive Odd Numbers?<\/strong><\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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<\/strong><\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"In the world of maths as well as business, Profit and Loss comes as a part and parcel…\n","protected":false},"author":106,"featured_media":826052,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"editor_notices":[],"footnotes":""},"categories":[423,476,389],"tags":[],"class_list":{"0":"post-826046","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-basic-concepts","8":"category-maths","9":"category-school-education"},"yoast_head":"\nFormula of Profit and Loss: Percentages, Cost and Selling Price, Examples - Leverage Edu Discover<\/title>\n<meta name=\"description\" content=\"Read on to learn more about the Formula of Profit and Loss, Percentages, Cost and Selling Price Formulas and Examples for each, right here!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leverageedu.com\/discover\/school-education\/basic-concepts-formula-of-profit-and-loss\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Formula of Profit and Loss: Percentages, Cost and Selling Price, Examples\" \/>\n<meta property=\"og:description\" content=\"Read on to learn more about the Formula of Profit and Loss, Percentages, Cost and Selling Price Formulas and Examples for each, right here!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leverageedu.com\/discover\/school-education\/basic-concepts-formula-of-profit-and-loss\/\" \/>\n<meta property=\"og:site_name\" content=\"Leverage Edu Discover\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-10T06:58:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blogassets.leverageedu.com\/media\/uploads\/sites\/9\/2024\/05\/14110309\/Formula-of-Profit-and-Loss-1.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Santana Daphne Antunis\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Santana Daphne Antunis\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Formula of Profit and Loss: Percentages, Cost and Selling Price, Examples - 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