Example 1
A bag is bought for ₹400 and sold for ₹500. What is the profit percent?
- Profit = 500 − 400 = ₹100
- Profit % = profit ÷ cost price × 100 = 100 ÷ 400 × 100
- = 25%
Answer: 25%
Profit and Loss Questions with Solutions
Profit and loss explained with worked examples: profit percent, loss percent and markup with discount, each solved on the cost price step by step.
How to solve profit and loss questions
Profit percent
Profit = selling price − cost price. Profit % = profit ÷ cost price × 100, always on the cost price.
Loss percent
Loss = cost price − selling price. Loss % = loss ÷ cost price × 100, always on the cost price.
Profit after a markup and a discount
Mark up the cost by m%, then take d% off the marked price. The profit percent is m − d − (m × d ÷ 100), not m − d.
Worked examples
Example 2
A chair bought for ₹500 is sold for ₹400. What is the loss percent?
- Loss = 500 − 400 = ₹100
- Loss % = loss ÷ cost price × 100 = 100 ÷ 500 × 100
- = 20%
Answer: 20%
Example 3
A shopkeeper marks a bag 50% above its cost price and then sells it at a 20% discount. What is the profit percent?
- Take the cost as ₹100: marked price = 100 + 50 = ₹150
- Selling price = 150 − 20% of 150 = 150 − 30 = ₹120
- Profit % = (120 − 100) ÷ 100 × 100 = 20%
Answer: 20%