## Terms related to Profit and Loss

- Cost price (C.P): Price at which an item is purchased.
- Selling price (S.P): Price at which an item is sold.
- Profit: When the selling price is greater than the cost price, it is called profit.
- Loss: When the selling price is less than the cost price, it is called as loss.
- Profit or loss per cent: Profit or Loss after selling an item of Rs. 100(C.P).
- Discount: Discount is the reduction in the market price.
- Market Price: Retailer marks the price on a label and attaches it to the articles.

## Profit & Loss Calculation

## Profit Calculation

**Profit or Gain** = selling price (S.P) – cost price (C.P)

### Example

S.P = 150, C.P = 20

Profit OR Gain = (150-120) = 30

## Loss Calculation

**Loss** = Cost price(C.P) – Selling price(S.P)

### Example

C.P = 100, S.P = 90

Loss = (100-90) = 10

Note: Profit or Loss per cent is always calculated on cost price(C.P).

## Formulas to calculate Profit & Loss

(i) % of Profit | = | Profit x 100 | ||

Cost price |

(ii) % of Loss | = | Loss x 100 | ||

Cost price |

(iii)** In case of profit:**

S.P | = | C.P | 100 + % of profit | ||

100 |

C.P | = | S.P x 100 | ||

100 + % of profit |

(iv)** In case of Loss:**

S.P | = | C.P | 100 – % of Loss | ||

100 |

C.P | = | S.P x 100 | ||

100 – % of Loss |