The profit formula is used to calculate the amount of gain that has been made in a transaction. When the Selling price of a product is greater than its Cost price, a profit is earned. This makes up the basic profit formula which further helps in generating the percentage of profit that has been earned in a business or while making a financial deal. Let us learn more about the profit formula in this article. Show
What is Profit Formula?The profit formula helps in calculating the profit earned by selling a particular product, usually in a business, or, to calculate the gain in any financial transaction. Profit can be calculated when the selling price is greater than the cost price. Hence, the formula to find the profit is: Profit = Selling Price (S.P.) - Cost Price (C.P.) Where,
It should be noted that when the selling price is less than the cost price, there is a loss in the transaction. Different Profit FormulasSince profit is a generic term, it is used for small and big transactions. For small-scale transactions, the basic profit formula given above is used. When bigger transactions take place in businesses, then terms like gross profit and net profit are used. These include terms like total sales, revenue, the overall profit percentage of a firm over a period of time, and so on. Some important formulas related to profit are given below:
Profit Percentage FormulaProfit percentage (%) is the amount of profit expressed in terms of percentage. This profit is based on the cost price, hence, the formula to find the profit percentage is: (Profit/Cost Price) × 100.
Want to find complex math solutions within seconds? Use our free online calculator to solve challenging questions. With Cuemath, find solutions in simple and easy steps. Book a Free Trial Class Examples Using Profit FormulaExample 1: A shopkeeper bought a pack of pencils for $25 and sold it for $30. Calculate the profit and the profit percentage. Solution: Cost price of the pack of pencils = $25; Selling price = $30 Using the Profit Formula, Profit = Selling Price - Cost Price Profit = $30 - $25 = $5 Using the Profit Percentage Formula, Profit Percentage = (Profit/Cost Price) × 100 Profit Percentage = (5/25) × 100 = 20% Therefore, the profit earned in the deal is of $5 and the profit percentage is 20%. Example 2: On selling a table for $840, a trader makes a profit of $130. Calculate the cost price of the table. Solution: The selling price of the table = $840; Profit = $130 Using the Profit Formula, Profit = Selling Price - Cost Price 130 = 840 - Cost Price Cost price = $710 Hence, the cost price of the table is $710. Example 3: Mr. Ben bought a bag for $85 and sold it for $100. Do you think he made a profit in this transaction? If yes, then how much profit did he make? Solution: Cost price of the bag = $85; Selling price of the bag = $100. Since the selling price is more than the cost price, there is profit in the transaction. Using the Profit Formula, Profit = $100 - $85 = $15 Therefore, Mr. Ben made a profit of $15.
When the Selling price of a product is greater than its Cost price, a profit is earned. This profit is calculated using the profit formula. In other words, the profit formula is used to calculate the profit earned by selling a particular product, usually in a business, or, to find the gain made in any financial transaction. The basic profit formula is expressed as, Profit = Selling Price - Cost Price What is the Gross Profit Formula?Gross profit is the profit that a business makes after the manufacturing and selling costs are subtracted from the total sales. The formula to calculate the gross profit is, Gross Profit = Total Sales (revenue) - Cost of goods sold. What is the Net Profit Formula?Net profit is the amount of money earned by a business after all the operating expenses, interest and tax expenses are deducted from the Gross profit. This means in order to find the net profit we need to know the gross profit. Therefore, the formula that is used to find the Net profit is, Net Profit = Gross profit - Expenses. What is the Formula to Calculate the Profit?The basic formula that is used to calculate the profit in a business or a financial transaction, is: Profit = Selling Price - Cost Price. Here,
What is the Profit Percentage Formula using Selling Price?The basic formula to find the profit percentage remains the same. However, the method varies according to the given values.
What is the Profit Percentage Formula?Profit is always based on the Cost price. To calculate the percentage of profit earned from a particular sale, the formula that is used is: Profit Percentage Formula = (Profit/C.P.) × 100 Where, C.P. = Cost Price of the article, i.e., the cost at which the article was originally bought. What is the Profit Earned by Buying Chocolates at $20 each and selling them at $30 each?Cost price = $20; Selling price = $30; Using the Profit Formula, Profit = Selling Price - Cost Price Profit = $30 - $20 = $10 Therefore, the profit earned is $10
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How to calculate selling price using cost and profit percent? We know, Selling Price = Cost Price + Profit Selling Price = Cost Price + \(\frac{Profit Percentage}{100}\) × Cost Price Selling Price = \(\frac{100 × Cost Price + Profit Percentage × Cost Price}{100}\) Selling Price = Cost Price [\(\frac{100 + Profit Percentage}{100}\)]; [Here, cost price and profit% are known.] 1. Ryan bought a book for $100 and sold it at a profit of 10%. Find the selling price of the book. Solution: Given cost price of the book = $100 Profit% = 10% We know, Selling Price = Cost Price [\(\frac{100 + Profit Percentage}{100}\)] = 100 (\(\frac{100 + 10}{100}\)) = 100 (\(\frac{110}{100}\)) = \(\frac{100 × 110}{100}\) = $110 Therefore, the selling price of the book is $110. 2. John bought a music system for $260. For how much should he sell the music system to gain 10%? Solution: Given cost price of the music system = $260 Gain% = 10% We know, Selling Price = Cost Price [\(\frac{100 + Gain Percentage}{100}\)] = 260 (\(\frac{100 + 10}{100}\)) = 260 (\(\frac{110}{100}\)) = \(\frac{260 × 110}{100}\) = $286 Therefore, he should sell the music system for $286. 3. Robert bought a machine for $1200 and sold it at a profit of 15%. Find the selling price of the machine. Solution: Given cost price of the machine = $1200 Profit% = 15% We know, Selling Price = Cost Price [\(\frac{100 + Profit Percentage}{100}\)] = 1200 (\(\frac{100 + 15}{100}\)) = 1200 (\(\frac{115}{100}\)) = \(\frac{1200 × 115}{100}\) = $1380 Therefore, the selling price of the machine is $1380. 7th Grade Math Problems From Calculate Selling Price using Cost and Profit Percent to HOME PAGE
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