Whenever the selling price is greater than the cost price then it is a profit.
Example: If the selling price of a bag is $235 and the cost price of the same bag is Rs. 200 then there is a profit of Rs. $35.
Profit= Selling Price(S.P) – Cost Price(C.P)
Whenever the selling price is less than the cost price then is is a loss.
Example: A dealer bought a television for $12000 and sold it for $10,000 then there is a loss of $2000.
Loss= Cost Price(C.P)- Selling Price(S.P).
FORMULAE TO CALCULATE PROFIT% AND LOSS%:
Profit%=( Profit/C.P) * 100
Note: Profit% and Loss% is always calculated on the cost price of the item.