**Profit Definition:**

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)**

**Loss definition:**

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**

**Loss%= (Loss/C.P)*100**

**Note:** Profit% and Loss% is always calculated on the cost price of the item.