# Profit and Loss Formulas

Important Points to Remember:

Cost Price:The price, at which an article is purchased, is called its

cost price, abbreviated asC.P.

Selling Price:The price, at which an article is sold, is called its

selling prices, abbreviated asS.P.

Profit or Gain:If S.P. is greater than C.P., the seller is said to have a

profitorgain.

Loss:If S.P. is less than C.P., the seller is said to have incurred a

loss.

IMPORTANT FORMULAE

1.Gain = (S.P.) – (C.P.)

2.Loss = (C.P.) – (S.P.)

3.Loss or gain is always reckoned on C.P.

4.Gain Percentage: (Gain %)

Gain % =

5.Loss Percentage: (Loss %)

Loss % =

6.Selling Price: (S.P.)

SP =

7.Selling Price: (S.P.)

SP =

8.Cost Price: (C.P.)

C.P. =

9.Cost Price: (C.P.)

C.P. =

10.If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.

11.If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.

12.When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:

13.If a trader professes to sell his goods at cost price, but uses false weights, then