Every product in the market has a cost price and selling price. To determine the product price in the market and also to understand the profit of the business, we use the formula of cost price and selling price. Know about the cost price, selling price and rates of profit and loss formula, definition, solved examples, real-time situations, etc.

Suppose that you went to a shopping mall to buy a new shirt worth Rs. 900. Also, suppose that you find the 10% off tag on it. The tag you find on it is the discount offered on the shirt. After calculating the discount value, the final price of the shirt is the selling price of the shirt. To know the complete details of cost price, selling price, and rates of profit and loss, check the below sections. Learn all the 9th grade math concepts along with calculating Cost Price and Selling Price.

Also, Check:

- To find Cost Price or Selling Price when Profit or Loss is given
- Worksheet on Calculating Selling Price and Cost Price
- Calculate Cost Price using Sell Price and Profit Percent

## Main Concepts of Cost Price and Selling Price

Read the below definitions and note down the formula to solve all the problems on Cost Price and Selling Price.

**Cost Price**

The amount of value paid to purchase the article or the amount at which the product is made is determined as the cost price. The abbreviation of the cost price is C.P.

- Fixed Cost: The cost that doesn’t vary and is constant under any circumstances is a fixed cost.
- Variable Cost: The cost that varies depending on the number of units.

**Selling Price**

After all the discounts and margins, the final price at which the article is sold is determined as the selling price. The abbreviation of the selling price is S.P.

**Discount**

Discount is the percentage of a commodity or good that is subtracted from the actual amount of good that is to be sold.

**Profit**

The amount or price gained by selling a product or commodity is called profit.

**Loss**

The amount or price that is incurred after selling the commodity or product less than the cost price, is called a Loss.

Do Refer:

- Calculate Cost Price using Sell Price and Loss Percent
- Calculate Selling Price using Cost and Profit Percent
- Calculate Selling Price using Cost and Loss Percent

### Formulas for Cost Price, Selling Price and Rates of Profit and Loss

The formulas for cost price, selling price, and rates of profit and loss are as follows:

(i) The formula for Profit and Profit Percentage is

Profit = Selling Price – Cost Price

Profit Percentage = (Profit / C.P) * 100

(ii) The formula for Loss and Loss Percentage is

Loss = Cost Price – Selling Price

Loss Percentage = (Loss / C.P) * 100

(iii) The formula for Cost Price is

Cost Price = Selling Price – Profit

(iv) The formula for Selling Price is

Selling Price = Cost Price + Profit

### How to Calculate Cost Price?

To calculate the cost price, we have to follow a few steps:

- Determine the total amounts of all commodities purchased.
- Add the selling price with profit or loss to find the cost price of the product.
- Now, use the cost price formula and calculate the final price
- The formula for Cost Price is Profit or Loss + Selling Price

### How to Calculate Selling Price?

To calculate the selling price, we have to follow a few steps:

- Determine the total amounts of all commodities purchased.
- Divide the final total cost of products by the number of items purchased to get the final cost price.
- Now, use the selling price formula and calculate the final price
- The formula for Selling Price is Cost Price + Profit Earned

### Solved Examples on Cost Price, Selling Price and Rates of Profit and Loss

Check out the below examples to learn the in-depth concepts of cost price and selling price.

**Example 1: **The shopkeeper bought a washing machine for Rs. 18000. He sold that washing machine for 10% profit. Find the price of the washing machine at which the customer will buy it. Also, find the earned profit or loss by the shopkeeper?

**Solution:** Given that,

Cost Price = Rs. 18,000

Profit = 10%

The formula to find the selling price of the washing machine is

SP = CP * [(100 + Profit%) / 100]

Here, SP is the selling price

CP is the cost price

Selling Price = CP * [(100 + Profit%) / 100]

SP = 18000 * [(100 + 10%) / 100]

SP = 18000 * 110 / 100

SP = 19,800

The selling price of the washing machine is Rs. 19,800

As selling price is greater than cost price, the profit is earned by the shopkeeper

Profit = Selling Price – Cost Price

Profit = 19,800 – 18,000

Profit = 1800

Therefore, the profit earned is 1800. Hence, the selling price of the washing machine is 19,800, the profit earned is 1800.

**Example 2:** Shiva sold an item for the price of Rs. 760. He sold it for a loss of 5%. Find the price at which he bought that item and also find the loss amount for Shiva?

**Solution:** Given that,

Selling Price of an item = Rs. 760

Loss = 5%

Let the cost price of an item be x.

Loss = x * 5/100 = Rs. x/20

So, the selling price is x – x/20 = Rs. 19x/20

As we know that the selling price = Rs. 760

19x/20 = 760

x = 760 * 20/19

x = Rs. 800

Therefore, the cost price of the item = Rs. 800

To find the loss amount we have to find the 5% of 800

5% of 800 is 40

Hence, the loss amount is 40.

**Example 3:** Shravan bought a TV for Rs. 10,000 and sold a profit of 15%. Find the amount of money Shravan gets for it?

**Solution:** Given that,

Cost Price = Rs. 10,000

Profit = 15%

To find the selling price of the TV, we use the formula

Profit = Cost Price * Profit%

Profit = 1000 * 15/100

Profit = Rs. 1500

To find the selling price, the formula used is

Selling Price = Profit + Cost Price

Selling Price = 1500 + 10000

Selling Price = Rs. 11500

Therefore, Shravan got Rs. 1500 as profit and sold the TV for Rs. 11,500.

### FAQs on Cost Price, Selling Price, and Rates of Profit and Loss

**1. What are the selling price and cost price?**

The selling price is the price that the product or item is to be sold for a particular amount. Also, the cost price is the price that the product or item is to be purchased for a particular amount.

**2. How do you calculate profit and loss?**

We can find the profit and loss by calculating the differences between the total income to total expenses. If the total income is greater than the expenses, it is profit or if the total income is less than the expenses, then it is a loss.

**3. What is the formula of profit percentage and formula of loss percentage?**

The profit percentage formula is 100 × Profit/Cost Price. Also, the loss percentage formula is 100 × Loss/Cost Price.

**4. What are Profit and Loss Formulas?**

The Profit and Loss Formulas are

Profit = Selling Price – Cost Price

Loss = Cost Price – Selling Price.

Cost Price, Selling Price, and Rates of Profit and Loss helps in applying the formulas in solving the various problems. Follow the various problems, formulae, and definitions of profit, cost price, loss, and selling price here.