How to Calculate Profit and Loss: Formulas for Business & Retail
Last updated: 2026-09-11 • Editorial Staff
Profit and loss calculations form the core accounting foundation of commercial trading and business finance.
Profit and Loss Formulas
Profit = Selling Price - Cost Price (when Selling Price > Cost Price)
Loss = Cost Price - Selling Price (when Cost Price > Selling Price)
Profit % = (Profit ÷ Cost Price) × 100
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