# Important Formulas of Profit and Loss | Profit & Loss Tricks to Remember

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.

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## 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 × 100%
4. Loss Percentage = Loss/Cost Price × 100%
5. Profit = Profit Percentage × Cost Price
6. Loss = Loss Percentage × Cost Price
7. If profit percentage and selling price are given
Cost Price = (100 × Selling Price)/100 + profit percentage
8. If loss percentage and selling price are given
Cost Price = (100 × Selling Price)/100 – loss percentage
9. If loss percentage and cost price are given
Selling Price = (100 + profit percentage)/100 × Cost price
10. If loss percentage and cost price are given
Selling Price = (100 – loss percentage)/100 × 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] × 100
4. Loss Percentage = [Loss/Cost Price] × 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 – Loss Percentage)} x Selling Price
9. Discount = Market Price – Selling Price
10. Selling Price = Market Price – Discount

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### 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 × 100 35/75 × 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 × 100 100/250 × 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 × 100 60/280 × 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 × 100 1000/29000 × 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 × 100
2/360 × 100 = 0.5%

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