Profit and Loss

Formula / Rule

Profit and Loss

Topic

Percentage & Profit/Loss

Formula

$\text{Profit} = \text{SP} - \text{CP}$ (when $\text{SP} > \text{CP}$) $\text{Loss} = \text{CP} - \text{SP}$ (when $\text{CP} > \text{SP}$)

$\text{Profit}% = \frac{\text{Profit}}{\text{CP}} \times 100$ $\text{Loss}% = \frac{\text{Loss}}{\text{CP}} \times 100$

$\text{SP} = \text{CP} \times (1 + \frac{\text{Profit}%}{100})$ $\text{SP} = \text{CP} \times (1 - \frac{\text{Loss}%}{100})$

$\text{CP} = \text{SP} \times \frac{100}{(100 + \text{Profit}%)}$ $\text{CP} = \text{SP} \times \frac{100}{(100 - \text{Loss}%)} $

Note: Percentage is always calculated on CP.

When to Use

Any problem involving cost price (CP), selling price (SP), profit, or loss calculations.

Worked Example

Q: $\text{CP} = \text{NPR } 500$, $\text{Profit}% = 20%$. Find $\text{SP}$.

$\text{SP} = 500 \times (1 + \frac{20}{100}) = 500 \times 1.2 = \text{NPR } 600$

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