**How to Calculate Profit or Loss Percent ?**

In this section, we will see how to find profit or loss percent when cost price and selling prices are given.

**Meaning of cost price :**

The price at which an article is purchased, is called its cost price.

**Meaning of selling price :**

The price at which an article is sold, is called the selling price.

**What is profit ?**

If the selling price is greater than cost price, the seller is said to have a profit.

**What is loss ?**

If the cost price is greater than selling price, the seller is said to have a loss.

Profit (or) gain - Selling price - Cost price

Loss = Cost price - Selling price

Profit % = (Profit / Cost price) ⋅ 100

Loss % = (Loss / Cost price) ⋅ 100

**Example 1 :**

A man buys an article for $27.50 and sells it for $28.60. Find his gain percent.

**Solution :**

Cost price of an article = $27.50

Selling price of an article = 28.60

Selling price > Cost price

So, the man gets profit

Profit = Selling price - Cost price

profit = 28.60 - 27.50

Profit = 1.1

Profit % = (Profit / Cost price) ⋅ 100

Profit % = (1.1/27.50) ⋅ 100

Profit % = 4%

Hence the man get 4% profit.

**Example 2 :**

If a radio is purchased for $490 and sold for $465.50, find the loss percent.

**Solution :**

Cost price of radio = $490

Selling price = $465.50

Cost price > Selling price

Loss = Cost price - Selling price

loss = 490 - 465.50

Loss = 24.5

Loss % = (Loss / Cost price) ⋅ 100

= (24.5/490) ⋅ 100

Loss % = 5%

Hence the required loss% is 5%.

**Example 3 :**

A book was sold for $27.50 with a profit of 10%. If it were sold $25.75 then what would have been the percentage of profit or loss ?

**Solution :**

Selling price = $27.50

This selling price includes 10% profit.

110% of cost price = 27.50

Let x be the cost price

110% of x = 27.50

x = 27.50 ⋅ (100/110)

x = 25

Cost price is $25.

Selling price is greater than cost price, so there is profit.

Profit = Selling price - Cost price

Profit = 25.75 - 25

Profit = 0.75

Profit % = (Profit / Cost price) ⋅ 100

= (0.75/25) ⋅ 100

= (75/25) ⋅ 100

Profit = 3%

Hence the required profit is 3%.

After having gone through the stuff given above, we hope that the students would have learned how to calculate profit or loss percent.

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