Profit, Loss, and Discount Calculations

Profit, loss, and discount questions are a natural extension of percentage calculations and appear frequently in QR data sets involving shops, businesses, or financial scenarios. This lesson covers the key terms, formulas, and the specific question types you will encounter.

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Key Terms

Term	Definition	Formula
Cost Price (CP)	The price paid to acquire or produce the item	Given in the question
Selling Price (SP)	The price at which the item is sold	Given or calculated
Profit	The gain from selling above cost price	SP − CP
Loss	The shortfall from selling below cost price	CP − SP
Mark-up	The amount added to the cost price	SP − CP (same as profit)
Discount	The amount reduced from the listed/original price	Original Price − Sale Price
VAT	Value Added Tax, added to the price	Usually 20% in the UK

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Profit and Loss Calculations

Calculating Profit

Profit = Selling Price − Cost Price