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## Profit and Loss

Profit Loss Profit Percentage Loss Percentage Discount
**Before you study how to calculate Profit / Loss, you must study the following terms:-**

** Definition ----- Cost Price :- **

When a seller buys a thing with the purpose of re-selling and the amount paid by him is called **Cost Price** of the seller.
**In other words,** buying price of seller is known as Cost Price of the product

Cost Price is also denoted as C.P.

** Definition ----- Selling Price :- **

When a thing is sold and the consumer/customer buys it by paying a particular amount, this particular amount is termed as **Selling Price** of the seller.
**In other words,** the price at which seller sells the product is known as Selling Price of the product

Selling Price is also denoted as S.P.

** Definition ----- Marked Price :- **

Whenever we buy any item from the market whether its food, clothing etc; all have a price printed on it. This price tag or M.R.P is known as **Marked Price**

** Definition ----- Overhead Expenses/Charges :- **

Sometimes, seller has to bear some extra/additional expenses when he buys a product, all such expenses are refered as **Overhead Expenses/Charges**

**Now, you can learn how to calculate Profit and Loss**

** Definition ----- Profit :- **

When a seller sells a product at a price which is more that his C.P.(cost price), then the seller earns profit/gain.

In other words, when the selling price of a thing is more than its cost price, then profit occurs.

Mathematical formula for Profit is :-

Profit = S.P. - C.P.

** Definition ----- Loss :- **

When a seller sells a product at a price which is less that his C.P.(cost price), then the seller makes losses.

In other words, when the selling price of a thing is less than its cost price, then loss occurs.

Mathematical formula for Loss is :-

Loss = C.P. - S.P.