## Profit And Loss Important Formula

Cost Price: – The Price at which an Article/Thing is purchased is called Cost Price CP).

Selling Price: – The Price at Which an Article/Thing is sold is called Selling Price (SP).

Gain or Profit = Selling Price – Cost Price

Loss = Cost Price – Selling Price

Profit Percentage = (Profit / Cost Price)* 100

Loss Percentage = (Loss/ Cost Price)* 100

Note: – The Profit and Loss Percent is always calculated on the Cost Price.

Marked Price: – Price that is indicated or marked on the article or thing (MP).

Discount: – It means Reduction given on the marked price of article/thing.

Discount Percent = 100* discount / MP.

Selling Price = (100-Discount percentage / 100)* MP.

##### Example1. A chair is bought for Rs 1950 and Sold at Rs 2340. Find the Gain Percent.

Solution:  CP = 1950 and SP =2340

Gain = SP – CP Therefore Gain = (2340-1950) = Rs 390

Now Gain Percent = (390/1950)*100  = 20 %

##### Example2. By Selling a Cow for Rs 990, a man Loses 10%. At What price should be sell to gain 10%.

Solution: SP = 990 and Loss % = 10

Now From Formula we have SP = ((100- loss %) /100)*CP

Therefore  CP= (SP*100 / 100 –loss%)

CP = (9900 / 90) = Rs 1100

Now SP = ((100 + profit%) /100)*CP   There Fore SP = ((110)/100)* 1100 = Rs 1210