Calculation of Profit Percent: Profit Percentage is nothing but the amount of Profit that a trader attained and stated in terms of Percentage for a specific business. It is a process to contrast the two quantities. This article assists the students to acknowledge simply the concept of Profit Percent. You can go through the below sections regarding the Profit Percent Definition, way to calculate the Percentage of Profit with the help of formulas, solved examples.
Not just this topic you can get to learn many such topics belonging to 6th Grade Math all under one place thus making it easy for you to prepare.
Percentage of Profit – Definition
It is the amount of Profit conveyed in phrases of percentage. Before We calculate the percentage of profit, it is required to know the cost price. Cost Price is generally the charges experienced to manufacture a particular product.
Profit Percentage Formula
The formula for calculating the Profit Percentage is given by the Expression as below:
Profit % = ( Profit/Cost Price)*100, Where Profit = Selling Price – Cost Price
Selling Price: It is a price that a customer sold a particular product that is unique for generating the income that a business requires for attaining the profit margin. It is denoted by S.P
Cost Price: It is the amount of price which is used for buying a particular product. It is denoted as C.P
How to Calculate the Profit Percentage?
Let us see the detailed procedure to calculate the percentage of profit manually as below. Follow the procedure over here and make your calculations much simple and quick.
- Initially know the selling price and cost price of a product.
- Subtract the given Cost Price from the selling Price in order to obtain your profit.
- Then substitute the obtained profit and divide it with Cost price.
- Now multiply the result obtained earlier with 100.
- The Resultant after simplification is the Profit Percentage.
See More:
- Calculate Profit and Profit Percent
- Calculating Profit Percent and Loss Percent
- Calculate Selling Price using Cost and Profit Percent
Examples for Calculation of Profit Percentage
Question 1:
Kiran buys baskets where each basket with a price of Rupees. 23 and sells them for 49 rupees. What is the percentage of profit he gets?
Solution:
Given Selling Price of Baskets = 58
Cost Price of Baskets = 32
Calculate the Profit = Selling Price – Cost Price = 58-32 = 26
Now substitute the profit in above Formula i.e. Profit % = (Profit/Cost Price)*100,
= (26/32)*100 = 81.25%
Therefore, the Profit Percentage is 81.25%
Question 2:
By selling goods for Rupees 9000; a profit of Rupees 1000 is made. Calculate the profit percent.
Solution:
1. Given Selling Price = 9000
profit = 1000
2. As we know Profit = Selling price – Cost Price
1000 = 9000 + Cost Price
Cost Price = 9000 – 1000
= 8000
3. Then calculate the profit percentage using the Formula = ( Profit/Cost Price)*100%
= (1000/8000)*100%
= (1/8)*100%
= 12%
4. Then the results obtained are nothing but the profit percentage.
Question 3.
When the selling price of 41 books is similar to the cost price of 42 books. Then what is the profit percent?
Solution:
If cost price of every book = 1
Cost Price of 42 books is = 1*42 = 42
The selling price of 41 books = cost price of 42 books = 42
2. Calculate the profit = Selling Price -Cost Price
= 42-41
= 1
3. Now substitute the obtained profit in the profit percent formula
= ( Profit/Cost Price)*100%
= (1/41)*100%
= 2.43%
FAQs on Calculating Profit Percentage
1. What is profit?
It is nothing but subtracting the given selling price from the cost price. i.e. selling price- Cost Price.
2. What is meant by profit Percentage?
It is an amount of profit which is termed in percentage.
3. Why percentage profit is needed?
It can give the information that a profit is attained when a product is sold.
4. How do we find the profit percentage?
It is found by using the formula as Profit % = Profit/Cost Price × 100%
5. Do you need the Cost Price in finding the Profit Percentage?
Yes, we need the Cost price which is very Unique in the calculation of profit percentage.