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Important Formula of Profit and Loss

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MD Rafeeq Mba Cma
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30 views

Important Formula of Profit and Loss

Uploaded by

MD Rafeeq Mba Cma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Important Formulas Of

Profit and Loss


Profit and Loss Formula
Profit Formula
A gain in the transaction occurs when the selling price of an item is above its cost
price. Profit and profit percentage are calculated using the following formulas:

Profit = Selling Price - Cost Price. Profit

percentage (P%) = (Profit /Cost Price) x 100

Loss Formula
Loss occurs in the transaction if the selling price of an item is less than the cost
price. The loss and loss percentage are calculated using the following basic
formulas:

Loss = Cost Price – Selling Price Loss

percentage (L%) = (Loss / Cost price) x 100

Discount Formula
As we know earlier, a Discount is always calculated on the Marked price or MRP.
The formulas for determining the Discount and Discount Percentage of an article
are

Sarabjeet Singh
Discount = Marked Price – Selling Price Discount

Percentage = (Discount/Marked price) x 100

Profit and Loss Formula and tricks


We have learned how to determine profit, loss, and their percentages. Let's
now explore some short tricks or formulas for resolving mathematical
problems based on profit and loss.

● Profit = SP – CP
● Loss = CP – SP
●Profit (%) = {Profit/CP} × 100
●Loss (%) = {Loss/CP} × 100
●Discount = Marked Price – Selling Price
●Discount (%) = (Discount/MP) × 100
●SP= [(100+ Gain%)/ 100]x CP
●SP= [(100- Loss%)/ 100]x CP
●CP= [100/ (100+ Gain%)]x SP
●CP= [100/ (100- Loss%)]x SP
● The real price cost price of a product will be [100 x 100 x
P/(100+m)(100+n)] if it is first sold at m% profit and then again at n%
profit. CP = [100 x 100 x L/(100-m)(100-n)] in the event of a loss.
●If P% and L% are equal,then P = L and %loss = P²/100

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