Profit and Loss Formulas: Many students dread mathematics more than all other subjects. However, maths is an essential science that has many applications in daily life. Many math concepts can make your everyday calculations easier and save time while shopping, trading, setting budgets, doing business, saving money, bank visits etc.
It’s always better and easier to solve problems in your mind without using a calculator. Not only can it keep you sharp, but also makes you more vigilant. You’ll be immune to petty scams and tricks swindlers pull. Percentage, profit and loss, simple and compound interest and basic math operations should be known to everyone, irrespective of their interest or talent level for maths.
Profit and Loss is one such math concept that’s paramount for students to learn in school. It can help students who wish to pursue commerce or banking careers. Learning profit and loss formulas can help you with everyday problems related to money, shopping bank or business issues.
On that note, we bring you the following Profit and Loss formulas at Jagran Josh.
Profit and Loss Formulas PDF
Fundamentals of Profit and Loss In Mathematics
Profit and Loss are terms used in mathematics to identify whether a monetary transaction is positive or negative with respect to money balance.
To understand profit and loss, first you need to know what are prices.
- Cost Price (CP): It is the amount at which a product is purchased by the seller.
- Selling Price (SP): This is the amount at which a product is sold by the seller and bought by the buyer.
- Profit (P): If the selling price of a product is more than its cost price, it’s said to yield a profit for the seller.
- Loss (L): If the selling price of a product is less than its cost price, it’s said to yield a loss for the seller.
- Profit and Loss Formula
Profit = Selling price (SP) - Cost price (CP)
Loss = Cost price (CP) - Selling price (SP)
Profit and Loss Percentage Formula
Profit percentage (P%) = (Profit /Cost Price) x 100
Loss percentage (L%) = (Loss / Cost price) x 100
Related: All Trigonometry Formulas and Identities
Examples and Solved Problems
Question 1: By selling 33 meters of cloth, one gains the selling price of 11 meters. Find the profit percent.
Solution:
Profit = (SP of 33m) - (CP of 33m) = SP of 11m
=> SP of 22m = CP of 33m
Let CP of each meter be ₹ 1. Then, CP of 22m = ₹ 22.
Hence SP of 22m of cloth = ₹ 33.
%Profit = (11/22) x 100
= 50%
Question 2: A man buys a fan for ₹ 1000 and sells it at a loss of 15%. What is the selling price of the fan?
Solution: CP of fan is ₹1000
Loss percentage is 15%
As we know, Loss percentage = (Loss/Cost Price) x 100
15 = (Loss/1000) x 100
Therefore, Loss = ₹150
As we know,
Loss = Cost Price – Selling Price
So, Selling Price = Cost Price – Loss
= 1000 – 150
Selling Price = ₹850/-
Question 3: Suppose a shopkeeper has bought 5 kg of apples for ₹250. And sold it for ₹450 per kg. Find the profit gained by him?
Solution:
Cost Price for apples is ₹250
Selling Price for apples is ₹450
Thus profit gained by shopkeeper is; P = SP – CP
P = 450 – 250 = ₹200
Question 4: A man sold 2 bicycles at the same selling price. One at 20% loss and the other at 20% profit. Find the overall profit and loss percentage of the transaction.
Solution: Let the selling price be 300x
Then, after applying the formula for Cost Price we get
CP for 1st bicycle = 375x
CP of 2nd bicycle = 250x
Hence, Net CP = 625x and net SP = 600x
∴ Net loss % = (25x/625x) × 100 = 4%
Download Mathematics Profit and Loss Formula Sheet PDF |
Also Read:
Formula of Compound Interest: How to Calculate, Example with Solution