# Calculate Cost Price using Sell Price and Profit Percent

How to calculate cost price using sell price and profit percent?

We know that   cost price = selling price - profit

cost price = selling price - profit% × cost price/100

cost price + profit% × cost price/100 = selling price

cost price(1 - profit%)/100 = selling price

cost price(100 + profit%)/100 = selling price

Also, cost price = selling price × 100/100 + profit% (on cross multiplication);

Here, selling price and loss% is known.

Solved examples will help us to find cost price when the selling price and profit% are known:

1. A bag was sold for $324 thereby gaining 8%. Find the cost price of the bag. Solution: Given selling price =$324

Gain% = 8%

We know, cost price = selling price × 100/100 + gain%

Therefore, cost price = 324 × 100/100 + 8

= 324 × 100/108

= 12 × 25

= $300 Therefore, the cost price of the bag is$300.

2. A book was sold for $575 thereby gaining 15%. Find the cost price of the book. Solution: Given selling price =$575

Gain% = 15%

We know, cost price = selling price × 100/100 + gain%

Therefore, cost price = 575 × 100/100 + 15

= 575 × 100/115

= 57500/115

= $500 Therefore, the cost price of the book is$500.