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Profit Percentage Formula | How To Calculate Profit Percentage? In Excel

Profit Percentage Formula

Profit comes when the selling price of any product sold is more than cost price (that is price at which product was originally bought).Profit Percentage Formula is commonly used for business and monetary transactions.

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In calculating profit percent, you will learn about the basic concepts of profit and loss. You will recall facts and formula while calculating profit percent. Now, apply the concept of percentage to calculate profit in selling and buying of goods in our day to day life.

How To Calculate Profit Percentage? Check Here!!!

Percentage Profit can be measured by working out difference between cost price and the selling price, then divide this answer by the original price (cost price) and multiply by 100. It will offer clear idea about your income & expenditure by estimating profit or loss.

Go through the below section of this page to get complete details regarding Profit Percentage Formula. Please have a look below for How to Use Profit Percentage Formula in Excel and How To Calculate Profit Percentage Formula!!!

Profit Percentage Formula

Important terms for calculating Profit or Loss:

Cost Price:

The price, at which an article is bought from market, is called its cost price. It is abbreviated as C.P.

Selling Price:

The price, at which an article is sold, is called its selling price. It is abbreviated as S.P.

Profit or Gain:

If S.P. is greater than C.P., (S.P>C.P) the seller is said to have a profit or gain.

Loss:

If S.P. is less than C.P, (S.P<C.P), the seller has sustain loss.

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Profit Percentage Formula

  1. Gain = (S.P.) – (C.P.)
  2. Loss = (C.P.) – (S.P.)
  3. Loss or gain is always considered on C.P.
  4. Gain Percentage{Gain % = Gain x 100/C.P}
  5. Loss Percentage: {(Loss %)= Loss x 100/ C.P.}
  6. Selling Price: (S.P.)= {100 + Gain %/100 x C.P}
  7. Selling Price: (S.P.)= {100 – Loss %/100 x C.P}
  8. Cost Price: (C.P.)={100/(100 + Gain %) x S.P.}
  9. Cost Price: (C.P.)={100/(100 – Loss %) x S.P.}
  10. If an article is sold at a gain of say 20%, then S.P. = 120% of C.P.
  11. If an article is sold at a loss of say, 25% then S.P. = 75% of C.P.
  12. In case person sells two related items, one at a gain of say x%, and the other at a loss of x%, then the vendor always sustain a loss listed as :

Loss % = (Common Loss and Gain %/10)2 =(X/10)2

  1. If a dealer acknowledge to sell his goods at cost price, but utilize false weights, then

Gain % = [Error {(True Value) – (Error)} x 100] %

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How To Calculate Profit Percentage In Excel?

Microsoft Excel is one of the useful bookkeeping tools for the ones running business. With the help of this tool, you can keep track of money moving in & outside of business by making spreadsheets. You may Calculate Profit Percentage in excel by following listed ways.

Step 1:

Start Excel program.

Step 2:

With help of right click of the mouse, choose four columns and a couple of rows.

Step 3:

Press on Insert tab and then on Table.

Step 4:

Put following values in the columns such as Income, Expenses, Profit, and Percentage. Candidates may fill values in Income and Expenses columns.

Step 5:

At next step, one may select the currency in which you are working with.

Step 6:

By hitting on Home tab, you may find currency settings with ease.

Step 7:

The dollar sign is visible in the Number section.

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What is the formula to calculate the profit?

For getting profit, enter the formula “=a2-b2” into the c2 Profit cell.

After calculating the profit amount, drag the corner of the cell to include the rest of your table.

After getting percentage, drag the corner of the cell to include the rest of your table.

One may view there is no percentage listed currently, but head over to the General tab up top and choose Percentage option.

Profit percentages will appear as seen in image

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Solved Problems of Profit Percentage:

Question 1: Mike bought a DVD for $ 750 and sold it for $ 875. Find Mike’s gain per cent.

Solution:

CP = $ 750 and SP = $ 875.

Since (SP) > (CP), Mike makes a gain.

Gain = $ (875 – 750)

= $ 125.

Gain% = {(gain/CP) × 100} %

= {(125/750) × 100} %

= (50/3) %

= 16 (2/3) %

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Question 2: Maddy purchased an old scooter for $ 12000 and spent $ 2850 on its overhauling. Then, he sold it to his friend Sam for $ 13860. How much per cent did he gain or lose?

Solution:

Cost price of the scooter = $ 12000, overheads = $ 2850.

Total cost price = $ (12000 + 2850) = $ 14850.

Selling price = $ 13860.

Since (SP) < (CP), Maddy makes a loss.

Loss = $ (14850 – 13860) = $ 990.

Loss = [(loss / total CP) × 100] %

        = [(990 / 14850) × 100] %

= 6

Question 3:  A vendor bought oranges at 20 for $ 56 and sold them at $ 35 per dozen. Find his gain or loss per cent.

Solution: LCM of 20 and 12 = (4 × 5 × 3) = 60.

Let the number of oranges bought be 60.

CP of 20 oranges = $ 56

CP of 1 orange = $ (56 / 20)

CP of 60 oranges = $ [(56 / 20) × 60] = $ 168

SP of 12 oranges = $ 35

SP of 1 orange = $ [(35 / 12) × 60] = $ 175

Therefore, CP = $ 168 and SP = $ 175.

Since, (SP) > (CP), the vendor gains.

Gain = $ (175 – 168) = $ 7.

Gain % = [(gain / CP) × 100] %

= [(7 / 168) × 100] %

= 25 / 6 %

= 4 ¹/₆ %

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Question 4: If the cost price of 10 pens is equal to the selling price of 8 pens, find the gain or loss per cent.

Solution:

Let the cost price of each card be $ x

Then, CP of 8 pens = $ 8x.

SP of 8 pens = CP of 10 pens = $ 10x.

Thus, CP = $ 8x and SP = $ 10x.

Since, (SP) > (CP), there is a gain.

Gain = $ (10x – 8x) = $ 2x.

Gain % = [(gain / CP) × 100] %

= [(2x / 8x) × 100] %

= 25%

Final words:

This is all about Profit Percentage Formula. Hope, you understand the concept of Profit Percentage Formula. Bookmark this page for getting more updates about Formula of Profit Percentage.

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