Profit and loss Formulas and Tricks

Profit and loss problems involve various terms like cost price, selling price, marked price etc. Basically, it is a difference between selling price and cost price.

Cost price is the price paid to purchase an article or a product or we can say it is a cost incurred in manufacturing an article.

Selling price is the price at which a product is sold.

Profit and loss formulas used in profit and loss:

1) Generally, profit is calculated as:
Profit or gain = Selling price(S.P) - Cost price(C.P)

SP Formula

⇒ Selling Price = Cost Price + Profit

2) Similarly, Loss = Cost price - Selling price

3) Gain percentage(%)
profit percentage formula

4) Loss percentage(%)

5) There is a direct relationship between selling price and cost price:

For Example: If an article is sold at a gain of 27%, then by using the first formula, you can find that S.P. is 127% of C.P.
Similarly, If an article is sold at loss of 18%, then by using the second formula, you can find that S.P. is 82% of C.P.

6) If a person sells two commodities at same prices. On one he gains x% and loses x% on another, then as a whole he will be in loss and the loss percentage will be equal to:
common gain percentage

Note: Here is an example to find gain in case of dishonesty.
Problem 1: A dishonest dealer professes to sell his goods at cost price but he uses a weigh 960 grammes for 1 kg. How to calculate the gain percentage?
Solution:
error true value