Master Profit & Loss from Zero

When a shopkeeper buys something and sells it, the difference is either profit or loss. If you buy a phone for ₹10,000 and sell it for ₹12,000 — you made a ₹2,000 profit. If you sell it for ₹8,000 — you made a ₹2,000 loss. Always remember: Profit and Loss are always calculated on COST PRICE.

Key Formulas

Profit %

Profit% = (Profit / CP) × 100

Always on CP, never on SP!

Loss %

Loss% = (Loss / CP) × 100

Same — always on CP.

SP when Profit% known

SP = CP × (100 + Profit%) / 100

Example: CP=100, Profit=20% → SP=120

SP when Loss% known

SP = CP × (100 - Loss%) / 100

Example: CP=100, Loss=20% → SP=80

CP from SP

CP = SP × 100 / (100 + Profit%)

Use when SP and Profit% are given.

Two items same SP trick

Loss% = (Common Gain/Loss %)² / 100

When selling two items at same SP one at x% profit and other at x% loss — ALWAYS a loss!

⚡ Shortcut Tricks

Profit/Loss % is ALWAYS calculated on Cost Price — never on Selling Price!

Net change when two successive profits/losses: Net% = a + b + (a×b)/100. Use - for loss.

Multiple changes: SP = CP × (1+a/100) × (1+b/100) × (1+c/100). Substitute - for loss.

Steady profit/loss: SP = CP × (1 ± a/100)ⁿ. Example: depreciate 20% for 2 years → SP = CP × (0.8)².

Two items same SP, one at x% profit, other at x% loss → ALWAYS a loss of x²/100 %.

Discount: D% = [(MP - SP) / MP] × 100. SP = MP × (1 - D/100).

Multiplying factor: 20% profit → multiply by 1.2. 15% loss → multiply by 0.85. Quick calculation!

✏️ Solved Examples

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