Loss and Percentage Profit Calculation Formulas

In this post, students explore how the percentage profit calculation as well as percentage loss calculation. Formulas will also be displayed on this post with examples in order explain the students mathematics topics i.e profit and loss percentage.

Formula for Percentage Profit & Loss Calculation

In some circumstances, after calculating the profit or loss, it is transformed to a percentage. It is a percentage that is used to describe the amount of profit or loss incurred.

This is useful for comparing two quantities. The profit and loss percentage formulas are as follows:

percentage profit Formulas

Profit percentage(P%) = (Profit /Cost Price) × 100

Loss percentage(L%) = (Loss / Cost price) × 100

Selling Price = {(100 + P%)/100} × CP(if SP > CP)

Selling Price = {(100 – L%)/100} × CP(if SP < CP)

Cost Price = {100/(100 + P%)} × SP(if SP > CP)

Cost Price = {100/(100 – L%)} × SP(if SP < CP)

(CP means cost price and SP means Selling price)

Problems on profit and loss

Example 1:

A shopkeeper Sting Cold drink cans in bulk for $50 each. He sells them for $30 each. Using the profit loss formula, calculate the loss and the loss percentage.

Solution:

In order to find Loss and Loss Percentage we have given:

Selling price = $30 & Cost price = $50

Using the profit and loss formula,

Loss = CP – SP

Loss = $50 – $30 = $20

Now using Loss Percentage Formula,

Loss% = (loss/CP) × 100

Loss Percentage = (20 /50) × 100 = 40%

Answer: Loss = $20 and loss percentage = 40%.

Example 2:

On selling a table for $980, Alysa loses 6%. Using the profit loss formula, find out how much did she purchase it for?

Solution:

In order to find Cost price of the table, we have been Given:

Loss Percentage = 6%;

Selling Price = $980

If the loss is 6%, it means that if the cost price is $100, the loss incurred is $6.

When Cost Price  is $100,

S.P= C.P – Loss = 100 – 6 = $94

When S.P is $94, C.P. = $100.  So,

When S.P  is $980,

C.P  = 100/94 × 980 = $1042

Answer: Cost price of the table = $1043