Formula of profit and loss
Here are the important formulas of Profit and Loss for Class 6–12 students and competitive exams:
🔹 Basic Terms
Cost Price (CP): The price at which an article is purchased.
Selling Price (SP): The price at which an article is sold.
Profit (Gain): If SP > CP → Profit = SP – CP
Loss: If CP > SP → Loss = CP – SP
🔹 Profit and Loss Formulas
1. Profit = SP – CP
2. Loss = CP – SP
3. Profit % = (Profit / CP) × 100
4. Loss % = (Loss / CP) × 100
5. SP = CP × (100 + Profit%) / 100
6. SP = CP × (100 – Loss%) / 100
7. CP = SP × 100 / (100 + Profit%)
8. CP = SP × 100 / (100 – Loss%)
🔹 Discount Formulas
1. Marked Price (MP): The labeled price before any discount.
2. Discount = MP – SP
3. Discount % = (Discount / MP) × 100
4. SP = MP × (100 – Discount%) / 100
🔹 Successive Discounts Formula
If two successive discounts are x% and y%, then net discount is:
Net Discount % = x + y – (xy / 100)
🔹 When Profit or Loss is on SP (rare)
Profit % on SP = (Profit / SP) × 100
Loss % on SP = (Loss / SP) × 100
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