Profit percentage formula explained with examples

Learn and know the profit percentage formula in math. In commercial maths, this is one of the important formulas we have to learn and remember.

Profit percentage formula explained with examples

As we are learning about the formula for profit percentage, so first we have to know what is the meaning of profit. Suppose, if you want to know about what is profit? Then you should have known what is cost price and what is mean by selling price. Hope that you know these two definitions, so we will know about the meaning of profit and later profit percentage formula.

What is mean by profit in math?

In math, profit is also called as gain, both gives the same meaning. If we are selling an item for more than the cost price of the item then we say that we will get profit or gain. In simple words, if selling price > cost price, we get profit which is also called as gain.

What is the Profit percentage formula in math?

We know what is profit, so now we will know what is profit percentage? Then we will know the formula for profit percentage. Whatever the profit we got, that profit representing in terms of percentage is called as profit or gain percentage. To determine this gain percentage, we have a simple formula.

The formula for Gain or profit percentage = \frac { gain\quad or\quad profit }{ cost\quad price } × 100

To find out the gain or profit use this formula.

The Gain or profit = selling price (S.P) – cost price (C.P)

Examples:

It is given that the cost price (C.P) of notepad is equal to Rs.60 and the selling price (S.P) of notepad is equal to Rs. 80. Find out what is profit percentage.

Solution:

Given that,

Cost price (C.P) of notepad = Rs. 60

Selling price (S.P) of notepad = Rs. 80

Therefore, gain or profit = S.P – C.P = 80 – 60 = 20

We know that the formula for profit percentage = \frac { gain\quad or\quad profit }{ cost\quad price } × 100 = \frac { 20 }{ 60 } × 100 = \frac { 1 }{ 3 } × 100 = 33.33%.

If cost price is Rs.40 and selling price is Rs.80 then find gain percentage.

Solution:

Given

Cost price (C.P) = Rs.40

Selling price (S.P)= Rs.80

Gain or profit = selling price (S.P) – Cost price (C.P)

                       = 80 – 40

                       = 40

Therefore, we know that the formula for gain percentage = \frac { gain\quad or\quad profit }{ cost\quad price } × 100 = \frac { 40 }{ 40 } × 100 = 100%

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