Profit and loss depends on the cost price and selling price of an article.
Suppose, if a person buys an article for $70 and sells it for $100.
The costprice (C.P.) of an article is the price at which the article is bought = $70
The sellingprice (S.P.) of an article is the price at which the article is sold = $100
Since, the selling price of the article is more than its cost price; it is sold at a profit.
and, profit (gain) = $100  $70 = $30
Thus, profit (gain) = selling price  cost price
i.e. profit (gain) = S.P.  C.P.
Similarly, if a person buys an article for $100 and sells it for $90;
The costprice of the article = $100
and its selling price = $90
Since, the selling price of the article is less than the cost price; it is sold at a loss.
and, loss = $100  $90 = $10
Thus, loss = cost price  selling price
i.e. loss = C.P.  S.P.
Note: S.P. is the short form for selling price and C.P. is the short form for cost price.
Corollary:
1. When selling price is more than cost price, there is a profit.
(i) profit = selling price  cost price i.e. profit = S.P.  C.P.
(ii) selling price = cost price + profit i.e. S.P. = C.P. + profit
(iii) cost price = selling price  profit i.e. C.P. = S.P.  profit
2. When selling price is less than cost price, there is a loss.
(i) loss = cost price  selling price i.e. loss = C.P.  S.P.
(ii) selling price = cost price  loss i.e. S.P. = C.P.  loss
(iii) cost price = selling price + loss i.e. C.P. = S.P. + loss
Solved examples on profit and loss:
1. A man bought an article for $10.50 and sold it for $12.
Here the cost price (C.P.) of the article is $10.50 and the selling price (S.P.) of the article is $12.00. Since the selling price of an article is more than its cost price; it is sold at a profit (gain).
Profit = selling price (S.P.)  cost price (C.P.)
= $12.00  $10.50
= $1.50
2. A boy bought a second hand bicycle for $570. After one year he sold it for $350.
Here the cost price (C.P.) of the bicycle is $570 and the selling price (S.P.) of the bicycle is $350. Since the selling price of an article is less than its cost price; it is sold at a loss.
Loss = cost price (C.P.)  selling price (S.P.)
= $570  $350
= $220
To find Profit or Loss when Cost Price and Selling Price are Given
To find Selling Price when Cost Price and Profit or Loss are Given
To find Cost Price when Selling Price and Profit or Loss are Given
Calculate Profit or Loss Percent
Calculate Profit and Selling Price
Calculate Loss and Selling Price
6th Grade Math Practice
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● Profit And Loss  Worksheets
Worksheet on Calculating Profit or Loss
Worksheet on Calculating Cost Price
Worksheet on Calculating Selling Price
Worksheet on Cost Price and Selling Price
Worksheet on Calculating Profit or Loss Percent
Worksheet on Profit or Loss Percent
Worksheet on Calculating Overhead Charges