# Profit and Loss Important Mathematics Formulas

Before learning**Profit and Loss formulas**you must know about some parameters like cost price, selling price, profit, and loss.

Profit and Loss Important Mathematics Formulas |

## Theory:

**Cost Price (CP):**The money paid by the shopkeeper to the manufacturer or whole – seller to buy goods is called the cost price (cp) of the goods purchased by the shopkeeper.

**Selling Price (SP):**The price at which the shopkeeper sells the goods is called selling price (sp) of the goods sold by the shopkeeper to the customer.

**Profit:**If the selling price of an article is more than its cost price, then the dealer (or shopkeeper) makes a profit (or gain).

i.e., Profit = SP – CP; SP > CP

**Loss:**If the selling price of an article is less than its cost price, the dealer suffers a loss.

i.e., Loss = CP –SP; CP > SP

[(100 – Loss%) x CP]/100

(100 x SP)/ (100 – Loss%)

**Some important formulae:**

- Profit = SP – CP
- Loss = CP – SP
- Profit percentage = (Profit/CP)x 100
- Loss percentage = (Loss/CP)x 100
- S.P = [(100 + Profit%)x CP]/100

[(100 – Loss%) x CP]/100

- C.P = (100 x SP)/ (100 + Profit%)

(100 x SP)/ (100 – Loss%)

- SP = (100 + x)% of CP; when Profit = x% of CP
- SP = (100 – x)% of CP; when Loss = x% of CP

**Some other related Formulae:**

- Marked Price = CP + markup
- Marked price = CP + (%marked x CP)/ 100
- Selling price = Marked price – Discount
- Selling price = MP - (%discount x MP)/ 100

**Things to remember:**

- If two items are sold at the same price, one with a profit of x% and another with a loss of x%, there will be an overall loss given by x
^{2}/100. - If the CP of two items is the same, and one is sold at x% gain, other at x % loss, then the net loss or net profit=0.
- On an offer to buy “a” goods and get “b” goods free, i.e., if “a+b” articles are sold at the rate of “a” articles, then the percentage discount = [(b/(a+b))×100]
- If there are successive discounts of x% and y%, the effective discount can be calculated as [x+y – (xy/100) ]%
- There are many shopkeepers who cheat by using false weights, then the gain to the shopkeeper on using the false weight can be calculated as follows (100 + Gain%)/100=(True Weight)/(False Weight).

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