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Profit and Loss Calculator

Enter the cost price (CP) and selling price (SP) to get profit or loss and its percentage — or work backwards to find the selling price or cost price from a given profit or loss percentage. Each answer shows the formula used.

₹
₹
Profit
₹200
Profit %
25%
Step-by-step solution
  1. SP > CP, so it is a profit.
  2. Profit = SP − CP = ₹1,000 − ₹800 = ₹200
  3. Profit % = (Profit ÷ CP) × 100 = (200 ÷ 800) × 100
  4. = 25%

How to use the profit and loss calculator

  1. Pick a mode: "From CP and SP", "Find selling price" or "Find cost price".
  2. Enter the amounts in rupees and, if needed, the profit or loss percentage.
  3. See the profit/loss amount, the percentage and every calculation step.

Formulas

ProfitSP − CP
When SP > CP
LossCP − SP
When CP > SP
Profit %(Profit ÷ CP) × 100
Loss %(Loss ÷ CP) × 100
SP from profit %CP × (100 + Profit%) ÷ 100
CP from SP and profit %SP × 100 ÷ (100 + Profit%)

Solved examples

Example 1: A shopkeeper buys a bag for ₹800 and sells it for ₹1,000. Find the profit %.

  • Profit = 1,000 − 800 = ₹200
  • Profit % = (200 ÷ 800) × 100

Answer: 25% profit

Example 2: A bike bought for ₹60,000 is sold at a 15% loss. What is the selling price?

  • SP = 60,000 × (100 − 15) ÷ 100
  • = 60,000 × 0.85

Answer: ₹51,000

Example 3: By selling a watch for ₹1,380 a trader gains 15%. What was the cost price?

  • CP = 1,380 × 100 ÷ 115

Answer: ₹1,200

Why profit % is always calculated on cost price

In school textbooks and in competitive exams, profit and loss percentages are measured against the cost price, because the cost price is the money you actually invested. So a ₹200 profit on an item that cost ₹800 is 25%, not 20%.

In business, "margin" is often calculated on the selling price instead (200 ÷ 1,000 = 20%). Markup is measured on cost; margin on selling price. Always check which one a question asks for.

Tricks that save time in exams

If an item is sold at x% profit and another identical item at x% loss, there is always an overall loss of (x²/100)%. For example, two items sold at 20% profit and 20% loss give a 4% net loss.

Convert percentages to fractions: a 25% profit means SP = 5/4 × CP, and a 20% loss means SP = 4/5 × CP. Thinking in fractions turns most profit and loss questions into one-line calculations.

📘 Learn it in your NCERT syllabus

Free chapter notes, flashcards and quizzes on TalentJR CBSE.

🎯 Asked in competitive exams

This topic regularly appears in the quantitative aptitude section of:

  • SSC CGL & CHSL
  • IBPS & SBI PO / Clerk
  • RRB NTPC & Group D
  • Campus placement aptitude tests
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Frequently asked questions

How do I calculate profit percentage?

Subtract the cost price from the selling price to get the profit, divide it by the cost price, and multiply by 100. Profit % = (SP − CP) ÷ CP × 100.

Is profit percentage calculated on cost price or selling price?

In school maths and in exams, profit and loss percentages are always calculated on the cost price unless the question clearly says otherwise.

How do I find the cost price if the selling price and profit % are given?

Use CP = SP × 100 ÷ (100 + Profit%). For a loss, use CP = SP × 100 ÷ (100 − Loss%).

What are overhead expenses?

Extra costs such as transport, repairs or labour that are added to the purchase price. They become part of the cost price before you calculate profit or loss.

What is the difference between markup and margin?

Markup is profit as a percentage of cost price; margin is profit as a percentage of selling price. A ₹200 profit on a ₹800 item is a 25% markup but a 20% margin.

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