Example 1
An article bought for ₹2,200 is sold at a profit of 8%. What is its selling price?
Answer: D) ₹2,376
SP = CP × (100 + profit%) / 100 = 2,200 × 108 / 100 = ₹2,376.
Profit and Loss questions for competitive exams: rules, worked examples and practice
Profit and loss questions compare cost price and selling price. Profit or loss percent is always calculated on the cost price.
Key rules and formulas
- Profit = SP − CP; profit % = profit ÷ CP × 100.
- SP = CP × (100 + profit%) ÷ 100; SP = CP × (100 − loss%) ÷ 100.
- CP = SP × 100 ÷ (100 ± profit/loss %).
- Selling two items at the same price, one at x% profit and one at x% loss, always gives a loss of x²/100 %.
Common traps
- Calculating percent on the selling price.
- Forgetting overheads that are added to the cost price.
Where Profit and Loss is asked
- IBPS Clerk Prelims (Numerical Ability)
- IBPS PO Prelims (Quantitative Aptitude)
- RRB Group D (Mathematics)
- RRB NTPC CBT 1 (Mathematics)
- SBI Clerk Prelims (Numerical Ability)
- SBI PO Prelims (Quantitative Aptitude)
- SSC CGL Tier 1 (Quantitative Aptitude)
- SSC CGL Tier 2 (Mathematical Abilities)
- SSC CHSL Tier 1 (Quantitative Aptitude)
Worked examples
Example 2
An article bought for ₹1,400 is sold at a profit of 30%. What is its selling price?
Answer: A) ₹1,820
SP = CP × (100 + profit%) / 100 = 1,400 × 130 / 100 = ₹1,820.
Example 3
An article bought for ₹2,200 is sold at a profit of 12%. What is its selling price?
Answer: B) ₹2,464
SP = CP × (100 + profit%) / 100 = 2,200 × 112 / 100 = ₹2,464.
Frequently asked questions
What is Profit and Loss in competitive exams?
Profit and loss questions compare cost price and selling price. Profit or loss percent is always calculated on the cost price.
Which exams ask Profit and Loss questions?
On MockBazaar, Profit and Loss questions appear in IBPS Clerk Prelims, IBPS PO Prelims, RRB Group D, RRB NTPC CBT 1, SBI Clerk Prelims, SBI PO Prelims, SSC CGL Tier 1, SSC CGL Tier 2, SSC CHSL Tier 1.
What is the most common mistake in Profit and Loss?
Calculating percent on the selling price.