Some basic formulas to calculate Profit and Loss

1. Some basic formulas to calculate Profit and Loss

2. Definitions
Cost Price(C.P): The price at which an article is
purchased, is called its cost price.
Selling Price (S.P):The price at which an article is
sold, is called its Selling price.
Profit/Gain: If S.P is greater than C.P., seller is said to
have a profit or gain.
Loss: If S.P is less than C.P., the seller is said to have
loss.

3. Formulas
Gain=(S.P)-(C.P)
Loss= (C.P)-(S.P)





 

PC
Gain
Gain
.
100
% 




 

PC
Loss
Loss
.
100
%
 
PC
Gain
PS .
100
%100
. 


 
PC
Loss
PS .
100
%100
. 



4. When a person sells two similar items, one at a gain of
x%, and the other at a loss of x%, then the seller always
incurs a loss given by
 
PS
Gain
PC .
%100
100
. 


 
PS
Gain
PC .
%100
100
. 


22
1010
%
% 












xandGainCommonLoss
Loss

5. If a trader professes to sell his goods at cost price, but
uses false weights, then
Basic understanding of Profit and Loss is helpful to solve
math homework problems easily.
   
%100% 








ErrorTrueValue
Error
Gain