Profit and Loss Definitions, Formulas, Solved Problems Basic Definitions and Formulas Cost price (C.P.): This is the price at which an article is purchased. Selling price (S.P.): This is the price at which an article is sold. Profit or Gain: If the selling price is more than the cost price, the difference between them is the profit incurred. Formula: Profit or Gain = S.P. – C.P. Loss: If the selling price is less than the cost price, the difference between them is the loss incurred. Formula: Loss = Cost price (C.P.) – Selling Price (S.P.) Profit or Loss is always calculated on the cost price. Marked price: This is the price marked as the selling price on an article, also known as the listed price. Discount or Rebate: This is the reduction in price offered on the marked or listed price. Below is the list of some basic formulas used in solving questions on profit and loss: Gain % = (Gain / CP) * 100 Loss % = (Loss / CP) * 1...