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

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

**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

**Read More- Profit and Loss Objective Questions**

**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-**

_{1}+ G

_{2}+ {(G

_{1}G

_{2}) / 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 G**_{1}% is made on first article and L_{2}% 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(G_{1} – L_{2} ) – 2 G_{1}L_{2}} **/** {(100+G_{1})+(100-L_{2})}]

**Read More- Profit and Loss Objective Questions**