Before calculating the problems on profit or loss we have to know what are the basic concepts of profit and loss. Every student must know the important terms like profit, loss, selling price, and cost price. Read the entire article to know the formulas of profit and loss and tricks. So, the students of 5th grade can make use of this article and enhance their skills.

**Do Refer:**

## What Does Profit or Loss Mean?

Profit is the amount the seller gets when he/she sells a product more than the cost price. Loss is the amount a seller gets when he/sells a product less than the cost price. There are numerous formulas to calculate the profit or loss.

### What Does Cost Price and Selling Price Mean?

**Selling Price:** Selling price is the amount of the product which is sold by the seller more or less than the cost price. The selling price depends on the demand for the good or product and the customer’s wish to buy the product. It is denoted by S.P.

**Cost Price:** Cost price is nothing but the amount paid for the product to purchase. It is popularly known as C.P. Again the cost price is classified into two categories.

1. Fixed cost: The fixed cost will not be varied whatever the situation may be.

2. Variable cost: The price of the product will be varies based on the number of units.

### Formulas of Profit and Loss

1. Profit = Selling Price – Cost Price

2. Loss = Cost Price – Selling Price

3. Profit Percentage = Profit/Cost Price Ã— 100%

4. Loss Percentage = Loss/Cost Price Ã— 100%

5. Profit = Profit Percentage Ã— Cost Price

6. Loss = Loss Percentage Ã— Cost Price

7. If profit percentage and selling price are given

Cost Price = (100 Ã— Selling Price)/100 + profit percentage

8. If loss percentage and selling price are given

Cost Price = (100 Ã— Selling Price)/100 – loss percentage

9. If loss percentage and cost price are given

Selling Price = (100 + profit percentage)/100 Ã— Cost price

10. If loss percentage and cost price are given

Selling Price = (100 – loss percentage)/100 Ã— Cost Price

11. Discount = Discount percentage of market price

12. Selling Price = Market Price – Discount

### Profit and Loss Formula Tricks

1. Profit = Selling Price – Cost Price; S.P > C.P

2. Loss = Cost Price – Selling Price; C.P > S.P

3. Profit Percentage = [Profit/Cost Price] Ã— 100

4. Loss Percentage = [Loss/Cost Price] Ã— 100

5. Selling Price = {(100 + Profit Percentage)/100} x Cost Price

6. Selling Price = {(100 – Loss Percentage)/100} x Cost Price

7. Cost Price = {100/(100 + Profit Percentage)} x Selling Price

8. Cost Price = {100/(100 â€“ Loss Percentage)} x Selling Price

9. Discount = Market Price â€“ Selling Price

10. Selling Price = Market Price – Discount

**Go through the articles:**

### Solved Problems on Profit and Loss

**Example 1. **

Mr. Ramesh bought a pen for $75 and sold it for $110. Find his profit or loss percent?

**Solution:**

Given,

Cost price (cp) = $75

Selling price (sp) = $110

Since sp > cp

Therefore Mr. Ramesh makes a perfect

Profit = selling price – cost price

110 – 75 = $35

Therefore profit % = profit/cost price Ã— 100

35/75 Ã— 100 = 46.6%

**Example 2. **

Tons bought a table for 250. As they were of bad quality. He had to sell them for 150 to find his loss or gain percent?

**Solution:**

Given,

Cost price (cp) = 250

Selling price (sp) = 150

Since sp < cp

Therefore Tons makes a loss

Loss = cost price – selling price

250 – 150 = 100

Therefore loss % = loss/cost price Ã— 100

100/250 Ã— 100 = 50%

**Example 3. **

Jon bought a pair of shoes for 280 and sold them for 220 find his loss or gain percent?

**Solution:**

Given,

Cost price (cp) = 280

Selling price (sp) = 220

Since sp < cp

Therefore Jon makes a loss

Loss = cost price – selling price

280 – 220 = 60

Therefore loss% = loss/cost price Ã— 100

60/280 Ã— 100 = 21.4%

**Example 4. **

Roy buys a car for 28000 and he sold it by 29000 and find his profit?

**Solution:**

Given,

Cost price (cp) = 28000

Selling price (sp) = 27000

Since sp > cp

Therefore Roy makes a perfect

Profit = selling price – cost price

28000 – 27000 = 1000

Therefore profit % = profit/cost price Ã— 100

1000/29000 Ã— 100 = 3.4%

**Example 5. **

Beem given a money to his friend of $360 and his friend returns him as $362 find his profit or loss percent ?

**Solution:**

Given,

Cost price (cp) = $360

Selling price (sp) = $362

Since sp > cp

Therefore Beem makes a perfect

Profit = selling price – cost price

$360 – $362 = $2

Therefore profit % = profit/cost price Ã— 100

2/360 Ã— 100 = 0.5%