Profit & Loss
Important Terms
Cost Price (CP): The price at which an item is bought by the seller.
Selling Price (SP): The price at which an item is sold by the seller.
Profit or Gain: If the Selling Price is Greater than the Cost Price.
Loss: If the Cost Price is greater than the Selling Price
Formulae
Profit = SP – CP
Loss = CP – SP
Profit % = (Profit/CP) x 100
Loss % = (Loss/CP) x 100
If an item is sold at 20% profit, then SP = 1.2 x CP = 120% of CP
If an item is sold at 20% loss, then SP = 0.8 x CP = 80% of CP