Loss percentage formula
Everything you need to know about the Loss percentage formula is provided below. Please proceed to read the whole document carefully to understand the topic completely.
In mathematics, the method for calculating the proportion of the loss that occurred in any firm is referred to as the “loss percentage formula.” We also provide it in the form of a percentage loss. Loss is the difference between something’s purchase and sale price.
And the amount of money lost as a percentage is the amount of money lost as a percentage of the actual cost price. In the world of business, the phrases profit and loss are among the most often encountered. The term “profit” refers to the money the proprietors of a company make after deducting their expenses.
Loss = CP -SP
Whereas the cost price, or CP, refers to the real price of the product or commodity, and the selling price, or SP, refers to the price at which the product was sold to the client.
The formula for Loss Percentage
It is considered a loss for a company’s business if the cost price of a product is more than the selling price, but a profit may be made if the cost price of the product is lower than the price at which it is being sold.
Loss percentage= Loss/CP x 100.
Q. Determine the loss as well as the loss percentage is given that the cost price is 50 rupees and the selling price is 45 rupees.
CP= 50 Rs.
Loss = CP-SP
Therefore there is a loss of 5rs while selling.
To find percentage-
Loss% = Loss/CP x 100
=5/50 x 100
Therefore there is a loss percentage of 10%.
Q. If a guy spent Rupees 50 Lakh to buy a property and then sold it for Rupees 45 Lakh. What is the proportion of profit that this business produces?
Since CP= 50lakh
And, SP= 45 Lakh
Therefore there is a loss of 5 lakh rs in the given transaction.
So to calculate the loss percentage-
Loss %= Loss/CP x 100
=500000/5000000 x 100
Therefore, there is a loss percentage of 10% in the said transaction.