Profit and Loss

Important terms related to profit and loss: Cost Price, Sales Price, Profit, Loss.

Cost Price (CP)

The Price at which an article is purchased, is called its cost price.

Selling Price (SP)

The Price at which an article is sold, is called its selling price.

Profit (Gain)

When SP > CP, then there is profit.

Profit = SP - CP

Loss

When CP > SP, then there is loss.

Loss = CP - SP

Formulas

Gain % or loss % is always calculated on the CP.

$$ \text{Profit %} = \frac{Profit}{CP} \times 100 $$

$$ \text{Loss %} = \frac{Loss}{CP} \times 100 $$