Profit Loss Formula
The profit and loss formula is based on when we buy or sell any product. Profit is when the selling price is more than the cost price, and in loss, the selling price is less than the cost price.
To know the profit loss formula concept, let us clarify the selling price and cost price. Selling price is the price at which the goods are sold, and cost price is the price at which the goods are bought.
- If the CP of the object is equal to the SP, then there is no loss or profit
- If the SP is more than the CP, the seller has a profit
- If the CP is more than the SP, the seller has a loss
- In case when SP and Profit% are given to calculate CP
CP= (100/(100+Profit%)) X SP
In case when CP and Profit% is given to calculate SP
SP = ((100+Profit%)/100) X CP
To calculate profit, the formula is profit = SP – CP
Here SP is the selling price, and CP is the cost price
To calculate loss, the formula is loss = CP -SP
Question: A man buys a table of Rs 1000 and sells it at a loss of 15%. What is the selling price of the table?
Cost price of table = Rs 1000
Loss percentage = 15%
Loss percentage = (Loss/cost price) X 100
15 = (loss /1000) X 100
Loss = Rs 150
Loss = CP – SP
SP = CP -Loss
= 1000 – 150
= Rs 850