Table of contents  
Profit and Loss Concepts  
Profit and Loss Examples  
Profit and Loss Formula  
Profit and Loss Formula Marked Price  
Profit and Loss Formula with Example 
Let us check out some of the most important concepts of profit and loss.
Profit (P)
The amount gained by selling a product with more than its cost price.
Loss (L)
The amount that you lose after selling a product with less than its cost price.
Cost Price (CP)
The amount paid for a product or commodity to purchase it is called a cost price. It can be divided into two parts:
Selling Price(SP)
The amount for which the product is sold is called the Selling Price.
Marked Price Formula (MPF)
Let us look at some important profit and loss formulas to get a better hold of the concept:
Gain = SP CP
Loss = CP SP
Gain% = (Gain/ CP)x 100
Loss% = (Loss/ CP)x 100
SP = [(100+ Gain%)/ 100]x CP
SP = [(100 Loss%)/ 100]x CP
CP = [100/ (100+ Gain%)]x SP
CP = [100/ (100 Loss%)]x SP
Marked Price is an additional price that is put up by the shopkeepers upon the selling price to offer a certain discount.
Discount = Marked Price – Selling Price
Discount Percentage = (Discount/Marked price) x 100
Now that you are clear with profit and loss formulas, below mentioned are some solved examples that will help you understand the usage of the abovementioned and related formulas.
Example 1: Sunita bought 10 shirts for Rs.40 and sold 8 of them at Rs. 35. Calculator gain or loss %.
Sol:
Example 2: A merchant sells his goods using weights 15% less than true weights and makes a profit of 20%. Find his total gain %.
Sol:
Let us consider 1 kg of goods bag. Its actual weight is 85% of 1000gm= 850gm
Let the cost price of each gram be Re. 1. Then the CP of each good bag= Rs. 850
SP of 1 kg bag= 120% of the true CP
Therefore, SP 120/100 x 1000 = Rs. 1200
Gain = 1200 850= 350
Gain %= 350/850 x 100= 41.17 %
Example 3: Riya sold a pen at a 12% profit. On selling it for Rs 18 more she would get a profit of 18%. What is the CP of the pen?
Sol:
SP = CP [1 + (Gain % x 100)]
Firstly
SP= CP (1 + 0.12) = 1.12 CP
Secondly
SP= CP (1 + 0.18)= 1.18 CP
So the difference between first and second cases is Rs. 18 (given)
Therefore,
1.18 CP – 1.12 CP = 18
0.06 CP = 18
CP = 18/0.06
CP= 300
The cost price of pen is Rs. 300
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