Profit and Loss

Medium

Profit and loss calculations determine the gain or deficit from a transaction based on cost price and selling price.

Why It Matters

A staple of placement aptitude tests and banking exams. Tests both arithmetic fluency and the ability to decode word problems.

How It Works

Cost Price (CP) is what you pay; Selling Price (SP) is what you get. Profit = SP − CP (when SP > CP). Loss = CP − SP (when CP > SP). Profit% = (Profit / CP) × 100. Loss% = (Loss / CP) × 100. If a shopkeeper claims to sell at CP but uses a false weight of w grams instead of 1000g, profit% = ((1000 − w) / w) × 100. Marked Price and Discount: SP = MP × (1 − Discount%/100).

Example

An article bought for ₹200 is sold for ₹250. Profit = ₹50. Profit% = (50/200) × 100 = 25%.

Common Mistakes

Students frequently calculate profit% using the selling price as the base. Another trap: confusing Marked Price with Cost Price when discounts are involved.

Test Your Understanding

Easy Q1

A trader buys an article for ₹500 and sells it for ₹600. What is the profit percentage?

Hard Q2

If selling price is doubled, the profit triples. What is the ratio of CP to SP?

Medium Q3

A shopkeeper marks an article 40% above cost price and then offers a 20% discount. What is the net profit%?

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Related Concepts

Percentage Basics

A percentage expresses a number as a fraction of 100.

Time and Work

Time and Work problems relate the rate of work of individuals or groups to the total time taken to complete a task.

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