Profit and Loss Introduction
When goods are bought and sold, money is either gained or lost. Profit is the extra money earned when the selling price is higher than the cost price. Loss is the money lost when the selling price is lower than the cost price.
In Class 5, you learn the basic concepts of profit and loss, including the terms Cost Price (CP), Selling Price (SP), and how to calculate the amount of profit or loss.
These concepts are used in everyday life — shopkeepers, vegetable vendors, and businesses all work with profit and loss.
What is Profit and Loss Introduction - Class 5 Maths (Money)?
Key Terms:
- Cost Price (CP): The price at which an item is bought.
- Selling Price (SP): The price at which an item is sold.
- Profit: When SP > CP. The seller earns extra money.
- Loss: When CP > SP. The seller loses money.
- No Profit, No Loss: When SP = CP.
Profit and Loss Introduction Formula
Profit = Selling Price − Cost Price (when SP > CP)
Loss = Cost Price − Selling Price (when CP > SP)
Other useful formulas:
- SP = CP + Profit
- SP = CP − Loss
- CP = SP − Profit
- CP = SP + Loss
Solved Examples
Example 1: Example 1: Finding Profit
Problem: Aman buys a cricket bat for ₹800 and sells it for ₹950. Find the profit.
Solution:
Step 1: CP = ₹800, SP = ₹950
Step 2: Since SP > CP, there is a profit.
Step 3: Profit = SP − CP = 950 − 800 = ₹150
Answer: Profit = ₹150
Example 2: Example 2: Finding Loss
Problem: Ria buys a mobile phone for ₹12,000 and sells it for ₹10,500. Find the loss.
Solution:
Step 1: CP = ₹12,000, SP = ₹10,500
Step 2: Since CP > SP, there is a loss.
Step 3: Loss = CP − SP = 12,000 − 10,500 = ₹1,500
Answer: Loss = ₹1,500
Example 3: Example 3: Finding Selling Price (Profit Given)
Problem: Priya buys a bag for ₹450 and wants to make a profit of ₹75. At what price should she sell it?
Solution:
Step 1: SP = CP + Profit
Step 2: SP = 450 + 75 = ₹525
Answer: She should sell it for ₹525.
Example 4: Example 4: Finding Cost Price
Problem: Kavi sells a watch for ₹1,200 and makes a profit of ₹200. What was the cost price?
Solution:
Step 1: CP = SP − Profit
Step 2: CP = 1,200 − 200 = ₹1,000
Answer: Cost price = ₹1,000
Example 5: Example 5: Loss on Selling a Cycle
Problem: Dev buys a cycle for ₹3,500 and sells it for ₹3,200. Find the loss.
Solution:
Step 1: CP = ₹3,500, SP = ₹3,200
Step 2: Loss = 3,500 − 3,200 = ₹300
Answer: Loss = ₹300
Example 6: Example 6: Selling Price with Loss
Problem: Aditi buys a dress for ₹600. She sells it at a loss of ₹80. Find the selling price.
Solution:
Step 1: SP = CP − Loss
Step 2: SP = 600 − 80 = ₹520
Answer: Selling price = ₹520
Example 7: Example 7: Profit on Multiple Items
Problem: Meera buys 10 pens for ₹150 and sells them for ₹200. Find the profit per pen.
Solution:
Step 1: Total profit = 200 − 150 = ₹50
Step 2: Profit per pen = 50 ÷ 10 = ₹5
Answer: Profit per pen = ₹5
Example 8: Example 8: No Profit, No Loss
Problem: Rahul buys a book for ₹250 and sells it for ₹250. What is the result?
Solution:
SP = CP = ₹250
Since SP = CP, there is no profit and no loss.
Answer: No profit, no loss.
Example 9: Example 9: Fruit Seller Problem
Problem: A fruit seller buys oranges for ₹40 per kg and sells them for ₹55 per kg. If he sells 8 kg, find his total profit.
Solution:
Step 1: Profit per kg = 55 − 40 = ₹15
Step 2: Total profit = 15 × 8 = ₹120
Answer: Total profit = ₹120
Example 10: Example 10: Finding CP from Loss
Problem: Neha sells a calculator for ₹350, incurring a loss of ₹50. What was the cost price?
Solution:
Step 1: CP = SP + Loss
Step 2: CP = 350 + 50 = ₹400
Answer: Cost price = ₹400
Key Points to Remember
- Cost Price (CP) is what you pay to buy an item.
- Selling Price (SP) is what you receive when you sell it.
- If SP > CP → Profit = SP − CP.
- If CP > SP → Loss = CP − SP.
- If SP = CP → No profit, no loss.
- SP = CP + Profit (or) SP = CP − Loss.
- Always identify whether there is profit or loss before calculating.
Practice Problems
- A shopkeeper buys a toy for ₹320 and sells it for ₹400. Find the profit.
- Arjun buys a phone for ₹15,000 and sells it for ₹13,500. Find the loss.
- Ria buys a saree for ₹1,200 and wants a profit of ₹300. At what price should she sell it?
- A book is sold for ₹180 at a loss of ₹20. What was the cost price?
- Dev buys 5 kg of apples at ₹120 per kg and sells them at ₹150 per kg. Find his total profit.
- Priya buys a chair for ₹2,000 and sells it for ₹2,000. Is there profit or loss?
- A shopkeeper buys 20 erasers for ₹100 and sells each for ₹8. Find the total profit or loss.
- Kavi buys a bicycle for ₹4,500 and sells it at a profit of ₹600. Find the selling price.
Frequently Asked Questions
Q1. What is profit?
Profit is the extra money earned when the selling price is more than the cost price. Profit = SP − CP.
Q2. What is loss?
Loss is the money lost when the cost price is more than the selling price. Loss = CP − SP.
Q3. What is cost price?
Cost price (CP) is the amount paid to buy an item. It includes the purchase price and any additional expenses like transport.
Q4. What is selling price?
Selling price (SP) is the amount received when the item is sold to a buyer.
Q5. What happens when CP equals SP?
When the cost price equals the selling price, there is no profit and no loss. The seller breaks even.
Q6. How do you find the selling price if profit is given?
SP = CP + Profit. Add the profit to the cost price to get the selling price.
Q7. How do you find the cost price if loss and SP are given?
CP = SP + Loss. Add the loss to the selling price to find the original cost price.
Q8. Where is profit and loss used in daily life?
Shopkeepers, vegetable vendors, online sellers, and businesses all use profit and loss calculations. Even when you sell old toys or books, you experience profit or loss.
