Example 1. A trader buys a bag for ₹400 and sells it for ₹460. Find the profit and the profit percentage.
- Profit = .
- Profit% = .
Answer: Profit ₹60, 15%
Profit and loss
When something is sold for more than it cost, the seller makes a profit. When it is sold for less, there is a loss. Cost price (CP) is what the seller paid and selling price (SP) is what the buyer pays.
Formulas
Profit and loss
Percentages (always on the cost price)
Selling price from a percentage
Worked examples
Example 2. A radio bought for ₹750 is sold at a loss of 8%. Find the selling price.
- Loss = .
- .
Answer: ₹690
Example 3. A table is sold for ₹1,320, which gives a profit of 10%. Find its cost price.
- SP is 110% of , so .
- .
Answer: ₹1,200
Common mistakes
- Taking the percentage on the selling price. Profit and loss percentages are on the cost price unless the question says otherwise.
- Subtracting in the wrong order. Profit is SP − CP, loss is CP − SP, and neither is ever negative.
- Treating a loss of 8% as an SP of 8% of CP. SP is 92% of CP.
Practice questions with answers
1. If the selling price (SP) is greater than the cost price (CP), what does the seller make?
- AProfit
- BLoss
- CNo profit no loss
- DDiscount
Show answer
Answer: A) Profit
When SP > CP, the seller earns a profit equal to SP - CP.
2. When the selling price (SP) of an article is more than its cost price (CP), the profit equals:
- ASP − CP
- BSP ÷ CP
- CSP + CP
- DCP − SP
Show answer
Answer: A) SP − CP
Profit = selling price − cost price, when SP > CP. CP − SP is the loss, used when SP < CP.
3. A dishonest dealer claims to sell sugar at cost price but uses a weight of 900 g in place of 1 kg.
Find his profit percent.
Find his profit percent.
- A %
- B10%
- C9%
- D11%
Show answer
Answer: A) %
He gives 900 g but charges for 1000 g. Profit = % ≈ 11.11%.
4. A man sells a radio at a 10% profit. Had he bought it for 10% less and sold it for ₹4 less, he would have gained 20%. Find the cost price.
- A₹220
- B₹200
- C₹180
- D₹400
Show answer
Answer: B) ₹200
Let CP = . SP = . New CP = , new SP = . Also new SP = . So → → = ₹200.
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Practice by class
- Class 7 · Profit and Loss60 practice questions with answers
- Class 8 · Profit and Loss50 practice questions with answers
Frequently asked questions
How do you calculate profit percentage?
Divide the profit by the cost price and multiply by 100.
What is the difference between cost price and selling price?
Cost price is what the seller paid. Selling price is what the customer pays.
How do you find the cost price from the selling price and profit percentage?
Divide the selling price by . With a 10% profit, .
What is a discount?
A reduction on the marked price. Selling price = marked price − discount, and the discount percentage is on the marked price.