How do overhead expenses affect Cost Price?

Overhead expenses such as transportation, repairs, and storage are always added to the purchase price to get the actual Cost Price (CP). This effective CP is used for all profit and loss calculations.

What does break-even mean in Profit and Loss?

Break-even means SP equals CP — no profit and no loss. In business, the break-even point is where total revenue equals total cost. In basic P&L, if SP = CP, profit = 0 and loss = 0.

Profit & Loss Calculator (Instant Results + 5 Step-by-Step Methods + Formula)

Q: On what value is Profit% always calculated?

Profit% and Loss% are always calculated on Cost Price (CP), never on Selling Price (SP). This is one of the most important rules in P&L. Remember: Profit% is on CP, Discount% is on MP.

Q: What happens when two items are sold at same SP with equal P% and L%?

There is always a net loss. Net Loss% = (common%)² / 100. For example, if both are sold at 10% profit and 10% loss, net loss = 1%. There is never a net profit or break-even in such cases.

Q: Can a trader offer a discount and still make a profit?

Yes. Traders mark their products above CP to account for discounts. Even after the discount on MP, if the final SP is still higher than CP, the trader makes a profit. This is standard retail practice.

Q: How is Profit% different from Markup%?

Profit% = (Profit / CP) × 100, calculated on CP. In Indian school exams, Profit% and Markup% mean the same thing. In accounting, markup is sometimes calculated on SP, so context matters.

👉 Enter Cost Price & Selling Price → Click Calculate

🧮 Profit & Loss Calculator

Cost Price (CP) Amount paid to buy

Selling Price (SP) Amount received on sale

Overhead / Extra Cost Transport, tax, repairs etc.

Discount Discount given on marked price

✅

Profit

📖 Solution — Step-by-Step Methods LEARN

Enter values above and calculate to see step-by-step solutions with your numbers.

⬆️ Enter CP & SP above and click Calculate to see live solutions here.

🧭 Quick Navigation — Jump to Any Section

📖 Solution Methods 📐 All Formulas 💡 Concepts 🧪 Solved Examples 🎯 Tricks & Shortcuts 🏷️ Discount & MP ❓ FAQ 📊 Ratio Table 🛒 Real Life Use

Profit and Loss Calculator with percentage example and formulas

What is Profit and Loss Calculator?

A profit and loss calculator is a tool used to calculate profit, loss, and percentage based on cost price and selling price. It helps in solving questions quickly without manual calculations.

Last Updated: March 2026

About This Calculator

This tool is designed for students, traders, and competitive exam preparation (SSC, IBPS, CAT, UPSC CSAT, RRB). It shows instant results with step-by-step solutions using 5 different methods — from basic formula to ratio speed method used in exams.

📐 All Profit & Loss Formulas REFERENCE

🔵 Core Formulas

Profit = SP − CP (when SP > CP)

Loss = CP − SP (when CP > SP)

📊 Percentage Formulas

Profit% = Profit CP × 100

Loss% = Loss CP × 100

💡 Find SP from CP & %

SP = CP × 100 + Profit% 100 (for profit)

SP = CP × 100 − Loss% 100 (for loss)

🔍 Find CP from SP & %

CP = SP × 100 100 + Profit%

CP = SP × 100 100 − Loss%

🏷️ Discount & Marked Price

Discount = Marked Price (MP) − SP

Discount% = Discount MP × 100

SP = MP × 100 − Discount% 100

📌 Key Rule: Profit% and Loss% are always calculated on CP. Discount% is always calculated on Marked Price (MP). These two rules alone can solve 80% of exam questions.

💡 Core Concepts Explained BASICS

🛒 What is Cost Price (CP)?

Cost Price (CP) is the price at which a trader purchases an item. It includes the purchase price plus any additional expenses like transportation, repairs, or taxes paid before selling. If these extra costs are mentioned in a problem, always add them to CP.

CP = Purchase Price + Overhead Expenses

💰 What is Selling Price (SP)?

Selling Price (SP) is the price at which an item is sold to the buyer. If SP > CP, the seller makes a profit. If SP < CP, the seller incurs a loss.

📈 What is Profit?

Profit occurs when you sell something for more than what you paid for it. The difference is your gain.

Profit = SP − CP (only when SP > CP)

📉 What is Loss?

Loss happens when you sell something for less than what you paid. Nobody wants this — but it's important to calculate when it happens!

Loss = CP − SP (only when CP > SP)

🏷️ What is Marked Price (MP)?

Marked Price is the price written on the tag of a product — also called the "list price" or "MRP". It's the price before any discount. The selling price is what you actually pay after discount.

Term	Symbol	What it means	Calculated on
Cost Price	CP	Amount paid to buy	—
Selling Price	SP	Amount received on sale	—
Marked Price	MP	Price on tag / label	—
Profit	P	SP − CP (when SP > CP)	—
Loss	L	CP − SP (when CP > SP)	—
Profit%	P%	(Profit / CP) × 100	Always on CP ✅
Loss%	L%	(Loss / CP) × 100	Always on CP ✅
Discount%	D%	(Discount / MP) × 100	Always on MP ✅

🧪 Solved Examples — Real Exam Questions PRACTICE

Click any example card to auto-fill the calculator above ↑

✅ Profit

Basic Profit Problem

CP = 400 | SP = 500

Profit = 100 (25%)

❌ Loss

Basic Loss Problem

CP = 600 | SP = 480

Loss = 120 (20%)

✅ Profit

Grocery Store Example

CP = 250 | SP = 300

Profit = 50 (20%)

❌ Loss

Electronics Sale

CP = 1000 | SP = 850

Loss = 150 (15%)

✅ Profit

Clothing Shop

CP = 750 | SP = 900

Profit = 150 (20%)

❌ Loss

Second-hand Bike

CP = 5000 | SP = 4500

Loss = 500 (10%)

📝 Fully Worked: Exam-Style Problem

Question: A trader buys a bicycle for 1,200, spends 150 on repairs, and sells it for 1,500. Find his profit and profit%.

Actual CP = Purchase Price + Repairs

Actual CP = 1200 + 150 = 1350

SP = 1500 > CP = 1350

→ SP > CP, so it's a Profit! ✅

Profit = 1500 − 1350 = 150

Profit% = 150 1350 × 100 = 11.11%

📝 Profit and Loss Questions with Answers MCQ + PRACTICE

Practice questions for SSC, IBPS, CAT, RRB, UPSC CSAT exams. Click any question to use the calculator above.

🔵 Basic Level Questions

Q1. CP = 500, SP = 650. Find Profit and Profit%.

Answer: Profit = 150, Profit% = 30%

Q2. CP = 800, SP = 680. Find Loss and Loss%.

Answer: Loss = 120, Loss% = 15%

Q3. A shopkeeper buys a pen for ₹40 and sells it for ₹52. Find Profit%.

Answer: Profit = ₹12, Profit% = 30%

Q4. CP = 1200, SP = 960. Find Loss%.

Answer: Loss = 240, Loss% = 20%

Q5. If CP = 350 and Profit% = 20%, find the Selling Price.

Answer: SP = 350 × 120/100 = 420

🟠 Intermediate Level Questions

Q6. A trader buys goods for ₹2000, spends ₹200 on transport, and sells for ₹2500. Find Profit%.

Answer: Actual CP = 2200, Profit = 300, Profit% = 13.64%

Q7. SP = 480 and Loss% = 20%. Find CP.

Answer: CP = 480 × 100/80 = 600

Q8. A book is marked at ₹500 and sold at 10% discount. What is the SP?

Answer: SP = 500 × 90/100 = 450

Q9. An article is sold at 25% profit. If CP = ₹640, find SP.

Answer: SP = 640 × 125/100 = 800

Q10. CP = 750, Overhead = 50, SP = 900. Find Profit%.

Answer: Actual CP = 800, Profit = 100, Profit% = 12.5%

🔴 Exam Tricky Questions

Q11. Two articles are sold at ₹990 each — one at 10% profit, other at 10% loss. Find net profit or loss.

Answer: Net Loss% = 10²/100 = 1%. There is always a net LOSS in such cases.

Q12. A shopkeeper marks price 40% above CP and gives 20% discount. Find Profit%.

Answer: Let CP=100, MP=140, SP=140×80/100=112. Profit% = 12%

Q13 (MCQ). CP:SP = 4:5. What is Profit%?
(a) 20% (b) 25% (c) 30% (d) 15%

Answer: (b) 25% → Profit% = (5-4)/4 × 100 = 25%

Q14 (MCQ). SP = 756, Profit% = 8%. Find CP.
(a) 660 (b) 700 (c) 720 (d) 680

Answer: (b) 700 → CP = 756 × 100/108 = 700

Q15 (MCQ). A man buys 10 items for ₹100 and sells 8 items for ₹100. Find Profit%.
(a) 20% (b) 25% (c) 15% (d) 18%

Answer: (b) 25% → CP per item = ₹10, SP per item = ₹12.5, Profit% = 25%

🎯 Exam Tricks & Shortcuts SHORTCUTS

🏆 Trick 1 — When SP and CP have simple ratio

If SP:CP = a:b → Profit% = (a−b)/b × 100

Example: SP:CP = 6:5 → Profit% = 6−5 5 × 100 = 20%

🏆 Trick 2 — Two articles at same SP (one profit, one loss)

If two articles are sold at the same SP with equal profit% and loss%, there is always a net loss.

Net Loss% = (Common %)² 100

E.g. Both sold at 20% P and 20% L → Net Loss = (20²)/100 = 4%

🏆 Trick 3 — Dishonest Merchant (false weights)

Merchant claims to sell at CP but uses false weight of x grams instead of 1000g.

Profit% = True Weight − False Weight False Weight × 100

🏆 Trick 4 — Successive Discounts

Two discounts of a% and b% → Effective discount = a + b − (ab/100)

E.g. 20% + 10% = 20 + 10 − 2 = 28% effective discount (not 30%!)

🏷️ Discount & Marked Price IMPORTANT

In a shop, you often see "20% off on MRP". This is where Marked Price and Discount come in. Let's understand with a clear example.

Example: A shirt has MP = 500. The shopkeeper gives 20% discount. He had bought the shirt for 300. Find his actual profit%.

SP = MP × 100 − 20 100 = 500 × 0.8 = 400

CP = 300, SP = 400

Profit% = 400 − 300 300 × 100 = 33.33%

👨‍🏫 Key insight: Even after giving 20% discount on MP, the shopkeeper made 33.33% profit on CP! That's because he marked the price much higher than CP. This is how most retail businesses operate.

🛒 Profit & Loss in Real Life EVERYDAY

📱 When You Buy & Sell a Phone

You buy a smartphone for 15,000. After 1 year, you sell it for 10,000. This is a Loss of 5,000. Loss% = (5000/15000) × 100 = 33.33%. Electronics always depreciate — understanding P&L helps you make smart decisions.

🏪 How Shopkeepers Price Products

A wholesale merchant sells shirts at 200. A retailer buys 50 shirts, paying 10,000. He pays 500 for delivery. His actual CP = 10,500 ÷ 50 = 210 per shirt. He marks them at 350 and gives 10% discount. SP = 315. Profit per shirt = 315 − 210 = 105. Profit% = 50%!

📈 Stock Market Basics

Shares work exactly like P&L. You buy 100 shares at 50 each (CP = 5,000). Price rises to 65, you sell (SP = 6,500). Profit = 1,500. Profit% = (1500/5000) × 100 = 30%. Understanding P&L is your first step to understanding investments.

🏘️ Real Estate

A flat bought for 30 lakhs in 2015 and sold for 48 lakhs in 2023. Profit = 18 lakhs. Profit% = 60% over 8 years. That's roughly 7.5% per year — not bad, but only if you knew how to calculate it!

📦

Wholesale

P&L on bulk

📊

Investments

Returns %

🛍️

Retail

Margin %

🏠

Real Estate

Capital gain

📊 CP : SP Ratio Table — Profit & Loss % (1 to 1/25) EXAM READY

What is the CP:SP Ratio Method?

In Profit & Loss problems, CP : SP ratio is the fastest way to find profit% or loss% without using formulas. If CP = 4 parts and SP = 5 parts, then Profit% = 1/4 × 100 = 25%. Once you memorise this table, exam problems become 5-second mental math.

📈 Profit % → CP : SP Ratio Table

Profit %	CP : SP	Fraction	Quick Trick
100%	1 : 2	1/1	SP = double CP
50%	2 : 3	1/2	SP = 1.5× CP
33⅓%	3 : 4	1/3	SP = CP + CP/3
25%	4 : 5	1/4	SP = 1.25× CP
20%	5 : 6	1/5	SP = CP + CP/5
16⅔%	6 : 7	1/6	SP = CP + CP/6
14²⁄₇%	7 : 8	1/7	SP = CP + CP/7
12½%	8 : 9	1/8	SP = 1.125× CP
11⅑%	9 : 10	1/9	SP = CP + CP/9
10%	10 : 11	1/10	SP = 1.1× CP
9¹⁄₁₁%	11 : 12	1/11	SP = CP + CP/11
8⅓%	12 : 13	1/12	SP = CP + CP/12
7⁹⁄₁₃%	13 : 14	1/13	SP = CP + CP/13
7¹⁄₇%	14 : 15	1/14	SP = CP + CP/14
6⅔%	15 : 16	1/15	SP = CP + CP/15
6¼%	16 : 17	1/16	SP = CP + CP/16
5¹⁵⁄₁₇%	17 : 18	1/17	SP = CP + CP/17
5⁵⁄₉%	18 : 19	1/18	SP = CP + CP/18
5⁵⁄₁₉%	19 : 20	1/19	SP = CP + CP/19
5%	20 : 21	1/20	SP = 1.05× CP
4¹⁶⁄₂₁%	21 : 22	1/21	SP = CP + CP/21
4⁶⁄₁₁%	22 : 23	1/22	SP = CP + CP/22
4⁴⁄₂₃%	23 : 24	1/23	SP = CP + CP/23
4¹⁄₆%	24 : 25	1/24	SP = CP + CP/24
4%	25 : 26	1/25	SP = 1.04× CP

📉 Loss % → CP : SP Ratio Table

Loss %	CP : SP	Fraction	Quick Trick
50%	2 : 1	1/2	SP = half CP
33⅓%	3 : 2	1/3	SP = CP − CP/3
25%	4 : 3	1/4	SP = 0.75× CP
20%	5 : 4	1/5	SP = CP − CP/5
16⅔%	6 : 5	1/6	SP = CP − CP/6
14²⁄₇%	7 : 6	1/7	SP = CP − CP/7
12½%	8 : 7	1/8	SP = 0.875× CP
11⅑%	9 : 8	1/9	SP = CP − CP/9
10%	10 : 9	1/10	SP = 0.9× CP
9¹⁄₁₁%	11 : 10	1/11	SP = CP − CP/11
8⅓%	12 : 11	1/12	SP = CP − CP/12
7⁹⁄₁₃%	13 : 12	1/13	SP = CP − CP/13
7¹⁄₇%	14 : 13	1/14	SP = CP − CP/14
6⅔%	15 : 14	1/15	SP = CP − CP/15
6¼%	16 : 15	1/16	SP = CP − CP/16
5¹⁵⁄₁₇%	17 : 16	1/17	SP = CP − CP/17
5⁵⁄₉%	18 : 17	1/18	SP = CP − CP/18
5⁵⁄₁₉%	19 : 18	1/19	SP = CP − CP/19
5%	20 : 19	1/20	SP = 0.95× CP
4¹⁶⁄₂₁%	21 : 20	1/21	SP = CP − CP/21
4⁶⁄₁₁%	22 : 21	1/22	SP = CP − CP/22
4⁴⁄₂₃%	23 : 22	1/23	SP = CP − CP/23
4¹⁄₆%	24 : 23	1/24	SP = CP − CP/24
4%	25 : 24	1/25	SP = 0.96× CP

🧠 How to Use This Table in Exams (3-Second Trick)

Rule: Profit% on CP = (Difference ÷ CP part) × 100
Example 1: CP:SP = 4:5 → Difference = 1, CP part = 4 → Profit% = 1/4 × 100 = 25%
Example 2: CP:SP = 5:4 → Difference = 1, CP part = 5 → Loss% = 1/5 × 100 = 20%
Example 3: CP = ₹400, SP = ₹500 → Ratio = 4:5 → Profit% = 25% (no formula needed!)

💡 The Golden Pattern Every Topper Knows

For Profit: n : (n+1) → Profit% = 1/n × 100
For Loss: n : (n−1) → Loss% = 1/n × 100
e.g. n=4 → Profit: 4:5 = 25% | Loss: 4:3 = 25% | n=5 → Profit: 5:6 = 20% | Loss: 5:4 = 20%

❓ Frequently Asked Questions FAQ

On what value is Profit% always calculated? ▾

Profit% and Loss% are ALWAYS calculated on the Cost Price (CP), never on Selling Price (SP). This is one of the most important rules in P&L. Remember: "Profit% is on CP, Discount% is on MP."

What happens when two items are sold at same SP with equal P% and L%? ▾

There is always a NET LOSS. This is a classic exam trick question! The net loss% = (common%)² / 100. For example, if both sold at 10% profit and 10% loss, the net loss = 100/100 = 1%. Never a net profit or break-even in this case!

How do overhead expenses affect CP? ▾

Overhead expenses (transportation, repairs, storage, taxes) are always ADDED to the purchase price to get the actual CP. This effective CP is then used to calculate all profit/loss figures. Don't forget to include them in exam problems — ignoring overheads is a common mistake.

What is the difference between Marked Price and Selling Price? ▾

Marked Price (MP) is the price written on the tag — also called the "listed price" or MRP. It's the price BEFORE any discount. Selling Price (SP) is what the customer actually pays AFTER discount. SP = MP × (100 − Discount%) / 100.

Can a trader offer a discount and still make a profit? ▾

Absolutely yes! Traders mark their products above CP to account for the discount they will give. So even after a discount on MP, the final SP is still higher than CP, giving them profit. This is standard retail practice. The question is always — how much higher than CP is the final SP?

How is Profit% different from Markup%? ▾

Profit% = (Profit / CP) × 100, calculated on CP. Markup% = (Profit / CP) × 100 — actually the same as profit% in Indian math. However in accounting, markup is sometimes calculated on SP, so be careful of context. In school exams, Profit% and Markup% mean the same thing.

What does "break-even" mean in Profit & Loss? ▾

Break-even means SP = CP — no profit, no loss. The break-even point is when total revenue equals total cost. In business, this tells you the minimum sales needed to cover all expenses. In basic P&L, if SP = CP, profit = 0 and loss = 0.

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