Profit Calculation

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Calculate profit, cost price, or selling price from given values.

Profit calculations involve three key values: cost price (what you paid), selling price (what you sold for), and profit (the difference). Profit = Selling Price - Cost Price. Profit margin as a percentage is calculated relative to the cost price: Profit % = (Profit / Cost) × 100.

Profit = Selling Price - Cost Price. Profit % = (Profit / Cost) × 100

• Buy at $80, sell at $100 → Profit = $20, Margin = 20/80 × 100 = 25%
• Cost $50, 40% markup → Selling = $50 × 1.40 = $70, Profit = $20
• Sold at $90 with $18 profit → Cost = $90 - $18 = $72

How to recognize it

• Problem mentions cost, selling price, or profit
• May ask for profit amount or profit percentage
• Markup problems are percentage-based profit calculations

Common mistakes

• Confusing profit margin with markup
• Calculating percentage based on selling price instead of cost
• Mixing up which value to subtract from which

Practice guidance

Numerical Reasoning