Calculation of Profit or Loss percent: Both profit or Loss indicates the amount of Loss or Profit earned in the phrases of Percentage. Whenever we do business in a specific product, there exists either profit or Loss. Hence this article allows us to learn about profit, loss percent definitions, how to solve the problems using the formulas. But Firstly, to calculate them we need to know the terms such as Selling Price, Cost Price.
Percentage of Profit, Loss – Definition
Expressing the Profit generated as a percentage is known as Profit Percentage and Loss generated as a percentage is known as a Loss percentage. Whether it is profit or Loss Percentage Cost Price is more Unique.
Profit Percentage and Loss Percentage Formula
The formulas for calculating the Profit Percentage and Loss percentage is stated below
Profit % = ( Profit/Cost Price)*100, Where Profit = Selling Price – Cost Price
Selling Price: The price which exists to sell the article is called a Selling Price. It is important to obtain the revenue in business to obtain the Profit margin. Abbreviated with S.P
Cost Price: The price which exists for purchasing the article is called a Cost Price. Abbreviated with the Letters C.P.
Loss % = ( Loss/Cost Price)*100, Where Loss = Cost Price – Selling Price
Students of 6th Grade Math can find plenty of concepts all arranged under one roof with proper explanations. Make use of the Activity Sheets, Worksheets, Practice Tests, and resolve all your doubts.
How to Calculate the Profit and Loss Percentage?
Initially proceed with the steps to know the way to calculate the percentage of Profit and Loss which makes it easier even when there is difficulty in solving the problems.
- First, note the selling price and cost price of a product.
- Calculate the Profit = S.P – C.P and Loss = C.P – S.P
- Submit the obtained Profit and Loss in the percentage Profit and percentage Formulas. i.e. Profit % = ( Profit/Cost Price)*100 and Loss % = ( Loss/Cost Price)*100,
- The resultant value is nothing but the percentage of profit and percentage of Loss.
Examples Calculating Profit or Loss Percent
Question 1: A motorbike was purchased for Rupees 80,000 and sold for Rupees 70,000. Then calculate the loss and loss percentage of motorbike.
1. Given Cost Price of motorbike= 80,000
Selling Price of motorbike = 70,000
Here selling price is less than the Cost Price, there exists a Loss.
2. we know the Formula: Loss = Cost Price – Selling Price
= 80,000 – 70,000
3. Submit the obtained loss in loss percentage Formula as below
Loss % = ( Loss/Cost Price)*100
= (10,000 / 80,000) *100
4. Hence 12.5 % loss is generated.
When a pavan purchases the Rose apples for Rupees 45 and he gets a profit of Rupees 15. Find out the profit percentage?
1. Given Selling Price of Rose apples = Rupees 45 and profit = Rupees 15
2. According to the Formula: Profit = Selling Price – Cost Price
15 = 45 – Cost Price
Cost Price = 45-15
Cost Price = 30
3. Submit the obtained Profit in loss percentage Formula as below
Profit % = ( Profit/Cost Price)*100
= (15 / 30)*100
= 50 %
4. Hence 50 % loss is generated for pavan
When a pencil is bought at 10 Rupees and sold at 7 Rupees, then calculate the loss percentage?
1. Given Cost Price of pencil= 15 and Selling Price of pencil = 7
2. Formula: Loss = Given Cost Price – Selling Price
3. Rupees 8 is the resultant Loss
FAQs on Calculating Profit and Loss Percentage
1. What is the profit percentage?
Profit Percentage is Calculating the amount of profit gained which is specified in terms of percentage for a product.
2. What is Loss percentage?
It is nothing but Calculating the amount of Loss faced which is specified in terms of percentage for a product.
3. What is the Formula for calculating the profit percentage?
The formula for calculating the profit percent is Profit % = ( Profit/Cost Price)*100
4. What is the Formula for calculating the Loss percentage?
The formula to calculate Loss Percent is Loss % = ( Loss/Cost Price)*100