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Home >> Profit and Loss >>

## Profit and Loss

 Profit Loss Profit Percentage Loss Percentage Discount

Before you study how to calculate Profit / Loss, you must study the following terms:-

Definition ----- Cost Price :-
When a seller buys a thing with the purpose of re-selling and the amount paid by him is called Cost Price of the seller.
In other words, buying price of seller is known as Cost Price of the product
Cost Price is also denoted as C.P.

Definition ----- Selling Price :-
When a thing is sold and the consumer/customer buys it by paying a particular amount, this particular amount is termed as Selling Price of the seller.
In other words, the price at which seller sells the product is known as Selling Price of the product
Selling Price is also denoted as S.P.

Definition ----- Marked Price :-
Whenever we buy any item from the market whether its food, clothing etc; all have a price printed on it. This price tag or M.R.P is known as Marked Price

Sometimes, seller has to bear some extra/additional expenses when he buys a product, all such expenses are refered as Overhead Expenses/Charges

Now, you can learn how to calculate Profit and Loss

Definition ----- Profit :-
When a seller sells a product at a price which is more that his C.P.(cost price), then the seller earns profit/gain.
In other words, when the selling price of a thing is more than its cost price, then profit occurs.
Mathematical formula for Profit is :-
Profit = S.P. - C.P.

Definition ----- Loss :-
When a seller sells a product at a price which is less that his C.P.(cost price), then the seller makes losses.
In other words, when the selling price of a thing is less than its cost price, then loss occurs.
Mathematical formula for Loss is :-
Loss = C.P. - S.P.