Profit and Loss Percentage Formulas

Profit and Loss Percentage Formulas

Cost Price (CP)

Cost price is the price at which we have purchased an item. This is abbreviated as CP.

Selling Price (SP)

Selling price is the price at which we sell an item; in short, it is written as SP.

During the purchase and sales of an item, depending upon the CP or SP, it can be either profit or loss for the seller.

Profit

When the Selling Price of an item is more than the Cost Price of the same item, then this is the condition of profit for the seller.

S.P. > C.P.

The difference in the amount of the Selling Price and the Cost price is the net Profit, given as-

Net Profit = S.P. – C.P.

Loss

When the Cost Price of an item is more than the Selling Price of the same item, then this is the condition of loss for the seller.

S.P. < C.P.

The difference between the amount of Cost Price and the Selling Price is a new loss.

Net Loss = C.P. – S.P.

Now we can easily conclude whether a sale was profitable or ended in a loss. Also, we know how to evaluate the profit or loss amount. Let’s learn how to express this amount in percentage.

Also Check: Profit Formula

Using the above formulas we can always estimate what is the profit or loss amount. This can be converted in terms of percentage as well i.e. profit % or loss %. The formula for estimating profit % or loss % is as follow:

Profit Percentage

Profit%=S.P−C.PC.P×100=NetProfitC.P×100

Loss Percentage

Loss%=C.P−S.PC.P×100=NetLossC.P×100