Profit and loss are one we see in our daily life when we go shopping. It is to determine the price of goods or products in the market and understand how profitable or lost a business is. As we discussed in the previous topics, a product has cost price and selling price. There are some important terms for finding profit or loss they are cost price, selling price, list price, fixed price, margin, etc.

We can find the profit or loss of a product with the help of the formula using cost price and selling price. Build your self-confidence by solving the questions given in the below section. If you solve those questions you can be sure about solving any type of question on finding loss or profit.

**Do Refer:**

### Basic Concepts of Profit or Loss

**Profit:** The price gained by selling a good or profit with more than its cost price is known as profit.

**Loss:** The price the seller obtained after selling the goods with less than the cost price is known as loss.

**Selling Price:** The amount for the product which is sold by the seller is known as the selling price. It is denoted by S.P.

**Cost Price:** The amount paid for the raw material and product to purchase is known as the cost price. It is denoted by C.P.

## Profit and Loss Formula

- When the selling price is greater than the cost price then

Profit = selling price – cost price - When the selling price is less than the cost price

Loss = cost price – selling price - Percentage Profit(%) = Profit/Cost Price Ã— 100
- Percentage Loss(%) = Loss/Cost Price Ã— 100

### Profit and Loss Questions with Solutions

The students of 5th grade can make their preparation easy by practicing the question and answers on finding profit or loss. This will help you to score good marks in the exams.

**Example 1. **

If Riya buys paddy at Rs. 287 per kg and she sells it at Rs. 300 per kg she makes a profit or loss?

Solution:

Riya buys a paddy ( cost price ) = Rs. 287

She sells at ( selling price ) = Rs. 300

Here selling price is greater than cost price

So, profit = selling price – cost price

300 – 287 = 13

Profit = Rs. 13

Thus the profit is Rs. 13

**Example 2. **

Rao buys carrots from the former for Rs. 180 and for cleaning purposes he spent Rs. 20 and for packing he sent Rs. 20 and he sold it for Rs. 200. Find that he have a profit or loss?

**Solution:**

Given,

Rao buys carrots from the former = Rs. 180

Rao used for cleaning purposes = Rs. 20

He spent for packing purposes = Rs. 20

Total money he spent to buy a carrots = 180 + 20 + 20 = 220

He sold for = 200

Here selling price is less than the cost price

Loss = cp – sp

220 – 200 = 20

Loss = 20

Therefore Rao has a loss of Rs. 20

**Example 3. **

If Sita buys a bar of gold at $840 per gram and she sells it at $984 per gram she makes a profit or loss?

**Solution:**

Given,

Sita buy a gold = $840

She sells it = $984

Here selling price is greater than the cost price.

Profit = sp – cp

$984 – $840 = $144

Profit = $144

Therefore Sita has a profit of $144.

**Example 4. **

If Milky buys a cycle for $28000 and she sold at $25000 she makes a profit or loss?

**Solution:**

Given,

Milky buy a cycle = $28000

She sold = $25000

Here selling price is less than the cost price

Loss = cp – sp

28000 – 25000 = 3000

Loss = $3000

Thus Milky makes a loss of $3000 on cycle.

**Example 5. **

Roman buy a ticket at a cost of $68 and he sold it for $72 that he makes a profit or loss?

**Solution:**

Given,

Roman buy a ticket at a cost = $68

Roman sold a ticket at a cost = $72

Here selling price is greater than the cost price

So, profit = sp – cp

72 – 68 = 4

Profit = 4

Thus Roman makes a profit of $4.

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**Points to Remember:**

- For Loss, the C.P should be more than the S.P.
- For Profit, the C.P should be less than the S.P.
- The percentage value for profit and loss is calculated in terms of C.P.

### FAQs on Profit Loss Formula

**1. What is the profit and loss percentage formula?**

The formula for profit percentage is P% = profit/C.P Ã— 100

The formula for loss percentage is L% = loss/C.P Ã— 100

**2. What is the Selling Price Formula?**

Selling Price = Cost Price + Profit

**3. What is Profit Loss Formula?**

The formula which is used to find the profit loss is

Profit = Selling Price – Cost price

Loss = Cost Price – Selling Price