Profit Formula

Profit formula is majorly used for business and financial transactions. Profit arises when the selling price of any product sold is greater than the cost price ( that is the price at which the product was originally bought). 

The Profit Formula is given as,

\[\large Percentage\;Profit=\frac{Selling\;Price-Cost\;Price}{Cost\;Price}\times 100\]

Solved Examples

Question: A shopkeeper buys watch in bulk for Rs. 20 each. He sells them for Rs. 45 each. What is the profit in percentage


Selling price of the watch = Rs. 45
Cost price of the watch = Rs. 20

Profit of the watch

= $\frac{Selling Price – Cost Price}{Cost Price}$ $\times$ 100

= $\frac{45 – 20}{20}$ $\times$ 100

= $\frac{25}{20}$ $\times$ 100

= 1.25 $\times$ 100

= 125%

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