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Everyone should always be in touch with these basic Profit and Loss formulas.

We must have read during our schooling but only few who remember these formulas. These formulas are very much necessary for the competitive papers. You will find their importance in reasoning and aptitude type questions.

### Basic Definitions

Marked Price (MP) – Price marked on an article.

Cost Price (CP) – Purchasing cost of the article.

Selling Price (SP) – Selling price of an article.

Loss (L) = Cost Price – Selling Price

Gain (G) = Selling Price – Cost Price

Discount- A consideration or reduction on the MP

### Important Formulas

• Loss% = {(loss * 100)/CP}
• Gain% = {(Gain * 100)/CP}
• Discount% = {(Gain * 100)/CP}
• SP = {(100-L%)×CP}/100
• SP = {(100+G%)×CP}/100
• SP = {(100-D%)×MP}/100
• False weight Formula

%Gain = (error/true value- Error)×100

Error = True weight – False weight

• If G1 and G2 are successive profits then Resultant Profit is given by-
[G1 + G2 + {(G1 G2) / 100}]
• When CP and SP is reduced by ‘X’ (same) amount

CP = {(initial G% + increase in G%)× X}/(increase in G%)

• If x articles CP equals y articles SP

G% = {(x-y)×100}/y

• If G1% is made on first article and L2% is made on 2nd article after selling both articles at the same price then, overall Gain% (+ve sign.) or Loss% (-ve sign.) is given by-

G% or L%= [{100(G1 – L2 ) – 2 G1L2} / {(100+G1)+(100-L2)}]