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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