Profit Percentage
Profit expressed as a percentage of the cost price.
\text{Profit \%} = \dfrac{\text{Profit}}{\text{Cost Price}} \times 100
1What it means
Profit = Selling Price − Cost Price. Profit % is always taken on the cost price unless stated otherwise.
2Variables
| Symbol | Meaning |
|---|---|
| \text{Profit} | Selling Price − Cost Price |
| \text{Cost Price} | What it cost you (CP) |
3Worked examples
Example 1 Worked solution
Q. An item bought for ₹400 is sold for ₹500. Find the profit %.
- Profit = 500 − 400 = 100.
- Profit % = (100 / 400) × 100.
- = 25.
✓ 25%
4Where it's used
- ✦Pricing, retail margins and trading problems.
5Tips & common mistakes
- !Profit % is on CP; discount % is on marked price — keep the base straight.
- !If SP < CP it is a loss; use the same formula with Loss.