# Profit and Loss

Aptitude

Important notes and formula

### What is Cost Price?

The price at which an item/article is purchased is called the cost price and it is written as CP.

### What is Selling Price?

The price at which an item/article is sold is called the selling price and it is written as SP.

### What is Profit?

If a seller is able to sell an item/article at a price more than its cost price i.e., when SP > CP it is called a profit.

### What is Loss?

If a seller is not able to sell an item/article at a price more than its cost price i.e., when SP < CP it is called a loss.

### What is At Par?

If a seller is able to sell an item/article at a price equal to cost price i.e., when SP = CP then there is no profit or loss and we say its at par.

Gain or Profit = SP - CP

Loss = CP - SP

### Gain or Profit percentage

 Profit % = Profit x 100 CP

### Loss percentage

 Loss % = Loss x 100 CP

### Cost Price CP

 CP = 100 x SP 100 + Gain%

 CP = 100 x SP 100 - Loss%

### Selling Price SP

 SP = (100 + Gain%) x CP 100

 SP = (100 - Loss%) x CP 100

### Profit of X%

If an item/article is sold at a profit/gain of 20% then SP = (100 + 20)% of CP.
= 120% of CP.

### Loss of X%

If an item/article is sold at a loss of 20% then SP = (100 - 20)% of CP.
= 80% of CP.

### Profit and Loss of X%

A seller sells two similar items, one at a profit of X% and another at a loss of X% so, the seller will always incurs a loss.

 Loss% = X2 100

### False weight

If a seller sells item at Cost Price (CP) but using false weight then he always makes a profit.

 Profit% = Error x 100 % CorrectValue - Error