For the purpose of comparison, we usually express the actual profits or loss as a percentage of cost price.

For example, a shopkeeper sold an article for Rs.60 which costs Rs.50 and another article sold for Rs.110 which cost Rs.100. In each case, shopkeeper makes a profit of Rs.10. It seems that in both cases profit is equally gained.

But in percentage profit, we have

Percentage Profit = x 100% = 20%

Percentage Profit = x 100% = 10%

Hence, in first case he made a more profit than in 2nd case, this is better and accurate method for comparison.

**Example:**

A bag costing Rs.28 sold for Rs.35. Find percentage profit.

**Solution:**

Let Cost Price = Rs.28

Selling Price = Rs.35

Profit = Selling Price – Cost Price = 35 – 28 = Rs.7

Percentage Profit = x 100% = 25%

**Example:**

A machine costing Rs.60 and sold for Rs.50. Find percentage loss.

**Solution:**

Let Cost Price = Rs.60

Sold Price = Rs.50

Loss = Cost Price – Sold Price = 60 – 50 = Rs.10

Percentage Loss = x 100% = %