How to Calculate Profit and Loss?
Profit and Loss concepts are fundamental to business and trade. Our calculator helps you determine whether you have made a financial gain or loss based on the cost price and selling price of an item.
Understanding the Terms
- Cost Price (CP): The price at which goods are purchased.
- Selling Price (SP): The price at which goods are sold.
- Profit: When SP is greater than CP (SP > CP).
- Loss: When CP is greater than SP (CP > SP).
Formulas Used
Profit = Selling Price - Cost Price
Loss = Cost Price - Selling Price
Profit % = (Profit / Cost Price) × 100
Loss % = (Loss / Cost Price) × 100