Profit and loss Important formulas:

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Profit and loss Important formulas:

Profit and loss is the branch of basic mathematics which deals with the study of profit and loss made in a business transaction.

Profit and loss is mainly used in finance and business transactions.

Some important profit and loss formulas are :

Notations used in profit and loss:

S.P. – Selling price

C.P. – Cost price

M.P. – Marked Price

Profit and Loss Formulas:

1. Profit or Gain = S.P. – C.P. [ profit is made only when S.P. is greater then C.P.]

2. Loss = C.P – S.P. [ Loss id made only when C.P. is greater than S.P.]

3. Profit % = (Actual Profit ÷ C.P. ) × 100%

4. Loss % = (Actual loss ÷ C.P. ) × 100%

5. C.P. = (S.P. × 100 ) ÷ (100 + profit%) [If profit is made]

6. C.P. = (S.P. × 100 ) ÷ (100 – profit%) [If loss is made]

7. S.P. = (100 + profit%) × C.P ÷ 100 [If profit is made]

8. S.P. = (100 – loss%) × C.P ÷ 100 [If loss is made]

9. Actual Discount = M.P. – S.P.

10. Discount% = (Actual Discount ÷ M.P.) × 100%

11. S.P. = M.P. – Actual Discount

12. S.P. = M.P. – Discount% of M.P.

13. S.P. = (100 – Discount%) of M.P

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