Profit and Loss Formula with Examples – Easy Maths Lesson for Students

Meta Description: Learn profit and loss formulas easily with examples, shortcuts, solved sums, and practice questions. Best beginner maths guide for students.

Introduction

Profit and Loss is an important maths topic used in business and daily life. We use it when buying and selling products, calculating discounts, and understanding business income.

In this lesson, you will learn profit and loss formulas in a simple and easy way.

What is Cost Price?

Cost Price (CP) is the price at which an item is bought.

Example: A shopkeeper buys a bag for ₹500.
Then:

$CP=500$

What is Selling Price?

Selling Price (SP) is the price at which an item is sold.

Example: The bag is sold for ₹650.

$SP=650$

What is Profit?

If selling price is more than cost price, there is profit.

$Profit=SP-CP$

Example:

$650-500=150$

Profit = ₹150

What is Loss?

If cost price is more than selling price, there is loss.

$Loss=CP-SP$

Example:

$800-720=80$

Loss = ₹80

Profit Percentage Formula

$Profit\%=\frac{Profit}{CP}\times100$

Example:

$\frac{150}{500}\times100=30\%$

Loss Percentage Formula

$Loss\%=\frac{Loss}{CP}\times100$

Example:

$\frac{80}{800}\times100=10\%$

Quick Tricks

• If SP > CP = Profit
• If CP > SP = Loss
• Profit/Loss % is always calculated on CP

Real Life Examples

• Buy mobile for ₹10,000 and sell for ₹11,500 = Profit
• Buy shoes for ₹2,000 and sell for ₹1,800 = Loss
• Shop discount sales often reduce profit

Practice Questions

1. CP = ₹400, SP = ₹500. Find profit.
2. CP = ₹900, SP = ₹810. Find loss.
3. CP = ₹600, Profit = ₹120. Find profit %.
4. CP = ₹1000, Loss = ₹150. Find loss %.

Answers

1. $500-400=100$
2. $900-810=90$
3. $\frac{120}{600}\times100=20\%$
4. $\frac{150}{1000}\times100=15\%$

Conclusion

Profit and Loss is easy when you remember CP, SP, and basic formulas. Practice regularly because this topic is useful in school exams, business, and competitive tests.

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