Most Important Formulas

Profit, Loss and Discount

1. If Gain = (S.P.) - (C.P.)
Loss = (C.P.) - (S.P.)
𝑮𝒂𝒊𝒏×𝟏𝟎𝟎
Gain Percentage: (Gain %)= ( )
𝑪𝑷
𝑳𝒐𝒔𝒔×𝟏𝟎𝟎
Loss percentage: (Loss%)= ( )
𝑪𝑷
Example:
A person buys a toy for RS. 50 and sells it for RS. 75. What will be his gain
percent?
a) 20%
b) 30%
c) 50%
d) 40%
Solution:
𝐺𝑎𝑖𝑛×100 (75−50)×100
(Gain %)= (
𝐶𝑃
)= 50
= 50%

𝟏𝟎𝟎−𝑳𝒐𝒔𝒔%
2. Selling Price: (S.P.) = ( ) × 𝑪𝑷
𝟏𝟎𝟎
𝟏𝟎𝟎+𝑮𝒂𝒊𝒏%
Selling Price: (S.P.) = ( ) × 𝑪𝑷
𝟏𝟎𝟎
𝟏𝟎𝟎
Cost Price: (C.P.) = ( ) × 𝑺𝑷
𝟏𝟎𝟎+𝑮𝒂𝒊𝒏%
𝟏𝟎𝟎
Cost Price: (C.P.) = ( ) × 𝑺𝑷
𝟏𝟎𝟎−𝑳𝒐𝒔𝒔%
Example:
By selling a watch for RS. 1440, a man loses 10%. At what price should he sell
it to gain 10%
a) RS. 1760
b) RS. 1660
c) RS. 1560
 d) None of these

Solution:
100 100 144000
(C.P.) = ( ) × 𝑆𝑃 = 100−10 × 1440 = = 1600
100−𝑙𝑜𝑠𝑠% 90
Required Selling Price: (S.P.)
100 + 𝐺𝑎𝑖𝑛% 100 + 10
=( ) × 𝐶𝑃 = × 1600 = 110 × 16 = 1760
100 100

3. When there are two successive profits of x% and y% then the resultant profit
𝒙𝒚
per cent is given by (𝒙 + 𝒚 + )
𝟏𝟎𝟎
Example:
A sells a cycle to B at 20% profit. Then B sells it to C at 25% profit. If C pays
RS. 225, then what is the cost price of cycle for A?
a) RS. 100
b) RS. 125
c) RS. 150
d) RS. 175
Solution:
𝑥𝑦 500
𝑅𝑒𝑠𝑢𝑙𝑡𝑎𝑛𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 = (𝑥 + 𝑦 + ) = 20 + 25 + = 50%
100 100
100 100
Cost Price: (C.P.) = ( ) × 𝑆𝑃 = × 225 = 150
100+𝐺𝑎𝑖𝑛% 100+50

4. If a dishonest trader professes to sell his items at CP but uses false

measurement, then
𝑻𝒓𝒖𝒆 𝒎𝒆𝒂𝒔𝒖𝒓𝒆𝒎𝒆𝒏𝒕 − 𝑭𝒂𝒍𝒔𝒆 𝒎𝒆𝒂𝒔𝒖𝒓𝒆𝒎𝒆𝒏𝒕
%𝒈𝒂𝒊𝒏 = × 𝟏𝟎𝟎
𝑭𝒂𝒍𝒔𝒆 𝒎𝒆𝒂𝒔𝒖𝒓𝒆𝒎𝒆𝒏𝒕
Example:
A retailer professes to sell his goods at cost price. If using a false weight, he
still gains 25%, find the weight he uses in place of 1 kg.
a) 200 g
b) 600 g
c) 700 g
 d) 800 g
Solution:
𝑇𝑟𝑢𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡 − 𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
%𝑔𝑎𝑖𝑛 = × 100
𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
1000 − 𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
25 = × 100
𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
25 1000 − 𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
=
100 𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
1 1000 − 𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
=
4 𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡 = 4000 − 4 × 𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
𝐹𝑎𝑙𝑠𝑒 𝑚𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡 = 800𝑔

5. If a shopkeeper sells his goods at x% profit and uses a measurement which is

y% less, then
% 𝒑𝒓𝒐𝒇𝒊𝒕 + %𝒍𝒆𝒔𝒔 𝒊𝒏 𝒘𝒕
𝑻𝒐𝒕𝒂𝒍 % 𝒑𝒓𝒐𝒇𝒊𝒕 = × 𝟏𝟎𝟎
𝟏𝟎𝟎 − %𝒍𝒆𝒔𝒔 𝒊𝒏𝒘𝒕
Example:
A trader sells wheat at 20% profit and uses weight 20% less than the actual
measure. His gain percent is
a) 50%
b) 25%
c) 10%
d) 15%
Solution:
% 𝑝𝑟𝑜𝑓𝑖𝑡 + %𝑙𝑒𝑠𝑠 𝑖𝑛 𝑤𝑡
𝑇𝑜𝑡𝑎𝑙 % 𝑝𝑟𝑜𝑓𝑖𝑡 = × 100
100 − %𝑙𝑒𝑠𝑠 𝑖𝑛𝑤𝑡

20 + 20 40
𝑇𝑜𝑡𝑎𝑙 % 𝑝𝑟𝑜𝑓𝑖𝑡 = × 100 = × 100 = 50%
100 − 20 80

6. If a person sells two similar articles, one at gain of a% and another at loss of
a%, then the seller always incurs a loss which is given by
 𝒂 𝟐
𝑳𝒐𝒔𝒔% = ( ) %
𝟏𝟎
Example:
A man sold two radios for RS. 2000 each. On one he gains 16% and on the
other he losses 16%. Find his gain or loss percent in the whole transaction.
a) 2%
b) 3%
c) 2.56%
d) 3.46%
Solution:
𝑎 2
𝐿𝑜𝑠𝑠% = ( ) %
10
16 2
𝐿𝑜𝑠𝑠% = ( ) % = 1.62 = 2.56%
10

7. If ath part of some items is sold at x% loss, then required gain percent in
selling rest of the items in order that there is neither gain nor loss in whole
𝒂𝒙
transaction, is %
𝟏−𝒂
Example:
A medical store owner purchased medicines worth RS. 6000 from a
company. He sold 1/3 part of the medicine at 30% loss. On which gain he
should sell his rest of the medicines, so that he has neither gain nor loss?
a) 20%
b) 25%
c) 15%
d) 35%
Solution:
1
𝑎𝑥 × 30 10
𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑔𝑎𝑖𝑛 % = =3 = = 15%
1−𝑎 1 2
1−
3 3
8. A businessman sells his items at a profit/ loss of a%. If he had sold it for RS. R
more, he would have gained/loss b%, then
𝑹
𝑪𝑷 𝒐𝒇 𝒊𝒕𝒆𝒎𝒔 = × 𝟏𝟎𝟎
𝒃±𝒂
‘-’ when both are either profit or loss
‘+’ when one is profit and other is loss
Example:
𝟏
A person sold a table at a profit of 𝟔 %. If he had sold it for RS. 1250 more,
𝟐
he would have gained 19%. Find the CP of the table.
a) RS. 10000
b) RS. 12500
c) RS. 15000
d) RS. 17000
Solution:
𝑅 1250 1250
𝐶𝑃 𝑜𝑓 𝑖𝑡𝑒𝑚𝑠 = × 100 = × 100 = × 100 = 10000
𝑏−𝑎 19 − 6.5 12.5

9. If cost price of ‘a’ articles is equal to the selling price of ’b’ articles, then
𝒂−𝒃
𝒑𝒓𝒐𝒇𝒊𝒕 % = × 𝟏𝟎𝟎%
𝒃
Example:
If the cost price of 20 articles is equal to the selling price of 16 articles, then
find the profit per cent.
a) 20%
b) 25%
c) 30%
d) 40%
Solution:
𝑎−𝑏 20 − 16
𝑝𝑟𝑜𝑓𝑖𝑡 % = × 100% = × 100 = 25%
𝑏 16
10. If a man purchases m items for RS. X and sells n items for RS. Y, then profit
𝒎𝒚−𝒏𝒙
or loss percent is given by × 𝟏𝟎𝟎%
𝒏𝒙
Example:
If Meghna purchases 10 oranges for RS. 25 and sells 9 oranges for RS. 25,
then find the gain percentage.
a) 11 1/9 %
b) 12 1/9%
c) 12%
d) 11%
Solution:
𝑚𝑦 − 𝑛𝑥 10(25) − 9(25) 1
𝑃𝑟𝑜𝑓𝑖𝑡 % = × 100% = × 100 = 11 %
𝑛𝑥 9(25) 9

11. If A sold an article to B at a profit (loss) of 𝑟1 % and B sold this article to C at

a profit (loss) of 𝑟2 %, then cost price of article for C is given by cost price for
𝒓𝟏 𝒓𝟐
𝑨 × (𝟏 ± ) (𝟏 ± )
𝟏𝟎𝟎 𝟏𝟎𝟎
Positive for profit and negative for loss is used.
Example:
Nilam sold a machine to Mohan at a profit of 30%. Mohan sold this machine
to Karan at a loss of 20%. If Nilam paid RS. 5000 for this machine, then find
the cost price of machine for Karan.
a) RS. 5000
b) RS. 5200
c) RS. 4800
d) None of these
Solution:
𝑟1 𝑟2
𝐶. 𝑃. 𝑜𝑓 𝑀𝑎𝑐ℎ𝑖𝑛𝑒 𝑓𝑜𝑟 𝐾𝑎𝑟𝑎𝑛 = 𝐴 × (1 + ) (1 − )
100 100
30 20 13 4
= 5000 × (1 + ) (1 − ) = 5000 × × = 5200
100 100 10 5
12. If the shopkeeper sells his goods at x% loss on cost price but uses y gm
𝒛
instead of z gm, then his % profit or loss is [𝟏𝟎𝟎 − 𝒙] − 𝟏𝟎𝟎 according as
𝒚
the sign is +ve or –ve.
Example:
A merchant professes to sell goods at the loss of 5% but uses weight of 900
grams in place of one kilogram, what is his profit percent?
a) 5%
b) 6%
c) 5 5/9 %
d) 6 6/9 %
Solution:
𝒛 𝟏𝟎𝟎𝟎 𝟓
𝑷𝒓𝒐𝒇𝒊𝒕 % = [𝟏𝟎𝟎 − 𝒙] − 𝟏𝟎𝟎 = (𝟏𝟎𝟎 − 𝟓) − 𝟏𝟎𝟎 = 𝟓 %
𝒚 𝟗𝟎𝟎 𝟗

13. If a dealer sells his goods at a% profit or loss on cost price and uses b% less
(𝒃±𝒂)
weight, then his percentage profit or loss will be × 𝟏𝟎𝟎%. According as
𝟏𝟎𝟎−𝒃
+ve for profit and -ve for loss
Example:
A dealer sells his goods at 20% loss on cost price but uses 40% less weight.
What is his percentage profit or loss?
a) 33%
b) 33 1/3 %
c) 22 ½ %
d) 22%
Solution:
(𝑏 − 𝑎) 40 − 20 1
𝑃𝑟𝑜𝑓𝑖𝑡 𝑜𝑟 𝑙𝑜𝑠𝑠% = × 100% = × 100 = 33 %
100 − 𝑏 100 − 40 3

14. If a part of an article is sold at x% profit/loss, ‘b’ part at y% profit/loss and c

part at z% profit/loss and finally there is a profit/loss of RS. R, then cost price
of entire article is given by;
 𝑹 × 𝟏𝟎𝟎
𝑪𝑷 =
𝒂𝒙 + 𝒃𝒚 + 𝒄𝒛
Example:
If 2/3-part of an article is sold at 30% profit, ¼ part at 16% profit and
remaining part at 12% profit and finally, there is profit of RS 75, then find
the cost price of the article.
a) Rs. 400
b) RS. 300
c) RS. 500
d) RS. 600
Solution:
𝑅 × 100 75 × 100 7500
𝐶𝑃 = = = = 300
𝑎𝑥 + 𝑏𝑦 + 𝑐𝑧 2 (30) + 1 (16) + 1 (12) 10 + 4 + 1
3 4 12

15. 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 = 𝑀𝑎𝑟𝑘𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 − 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒

𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 % = × 100
𝑀𝑎𝑟𝑘𝑒𝑑 𝑝𝑟𝑖𝑐𝑒
𝑟
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑀𝑃 × (1 − ) where r% is the rate of discount allowed.
100
Example:
An item is sold for RS. 680 by allowing a discount of 15% on its marked price.
The marked price of an item is
a) RS. 700
b) RS. 800
c) RS. 900
d) RS. 1000
Solution:
𝑟
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑀𝑃 × (1 − )
100
15
680 = 𝑀𝑃 (1 − )
100
680 × 20
𝑀𝑃 = = 800
17
16. When a series of discounts (one after the other) are allowed on marked
price of an article, then these discounts are called successive discounts.
Let 𝑟1 %, 𝑟2 %, 𝑟3 %, … be the series of discounts on an article with marked
price of RS. P, then the selling price of the article after all the discounts is
given as
𝒓𝟏 𝒓𝟐 𝒓𝟑
𝑷 × (𝟏 − ) × (𝟏 − ) × (𝟏 − ) ….
𝟏𝟎𝟎 𝟏𝟎𝟎 𝟏𝟎𝟎
Example:
A shopkeeper on the eve of Diwali allowed a series of discount on television
sets. Find the selling price of a television set, if the marked price of
television is RS. 1000 and successive discounts are 𝟏𝟎% 𝒂𝒏𝒅 𝟓%
a) Rs. 755
b) RS. 855
c) RS. 865
d) RS.965
Solution:
𝑟1 𝑟2 10 5
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = 𝑃 × (1 − ) × (1 − ) = 1000 (1 − ) (1 − )
100 100 100 100
= 855

17. Single discount equivalent to two successive discounts 𝑟1 % and 𝑟2 %

𝒓𝟏 𝒓𝟐
= (𝒓𝟏 + 𝒓𝟐 − )%
𝟏𝟎𝟎
Single discount equivalent to three successive discounts 𝑟1 %, 𝑟2 % and 𝑟3 %
𝒓𝟏 𝒓 𝒓
= [𝟏 − (𝟏 − ) × (𝟏 − 𝟐 ) × (𝟏 − 𝟑 )] × 𝟏𝟎𝟎%
𝟏𝟎𝟎 𝟏𝟎𝟎 𝟏𝟎𝟎

Example:
What will be a single equivalent discount for successive discounts of 10%
and 20% on marked price of an article?
a) 14%
b) 20%
c) 28%
d) 18%
 Solution:
𝑟1 𝑟2 200
𝑆𝑖𝑛𝑔𝑙𝑒 𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡 = (𝑟1 + 𝑟2 − ) % = (10 + 20 − )
100 100
= 30 − 2 = 28%

18. If a shopkeeper wants a profit of R% after allowing a discount of r%, then

𝟏𝟎𝟎+𝑹
marked price (MP) of the item = 𝑪𝑷 ( )
𝟏𝟎𝟎−𝒓
OR
𝟏𝟎𝟎−𝒓
Cost Price (CP) of the item = 𝑴𝑷 ( )
𝟏𝟎𝟎+𝑹
Example:
The marked price of a bicycle is RS. 1100. A shopkeeper allows a discount of
10% and get a profit of 10%. Find the cost price of the bicycle.
a) Rs. 800
b) Rs. 900
c) RS. 990
d) Rs. 880
Solution:
100−𝑟 100−10
Cost Price (CP) of the item = 𝑀𝑃 ( ) = 1100 (100+10) = 900
100+𝑅

19. If a shopkeeper allows a discount of 𝑟1 % on an article and marked price of

the article is r% more than the cost price, then profit or loss per cent in this
transaction
𝒓 × (𝟏𝟎𝟎 − 𝒓𝟏 )
= − 𝒓𝟏
𝟏𝟎𝟎
Positive value allows a profit, while negative value shows loss.
Example:
A shopkeeper marked the price 10% more than its cost price. If he allows a
discount of 20%, then find his loss per cent
a) 14%
b) 13%
c) 12%
d) 11%
Solution:
𝑟 × (100 − 𝑟1 ) 10(100 − 20)
𝐿𝑜𝑠𝑠% = − 𝑟1 = − 20 = −12%
100 100
As negative value shows loss, so required loss % is 12%