Loss Percentage Formula, Steps with Solved Examples

What is Loss Percentage?

Loss percentage tells us how much loss happens when something is sold for less than its cost price. When the selling price (S.P.) of an item is lower than its cost price (C.P.), we say there is a loss. The difference between the cost price and the selling price is called the loss amount. So, what is loss percentage? It is the loss expressed in the form of a percentage based on the cost price.

Moreover, to calculate the loss, we use a simple formula: Loss = Cost Price (C.P.) − Selling Price (S.P.). After finding the loss, we can use the loss percentage formula to calculate the loss as a percentage. This makes calculating loss percentage easy in maths as well as real-life situations. Keep reading to learn more about the loss percentage formula with solved examples.

Also read: Profit and Loss Formula: Concepts, Tricks, and Examples

Loss Percentage Formula

Loss percentage formula is used to show loss in the form of a percentage. It helps us compare losses easily in maths. First, we find the loss using this simple formula:

Loss = Cost Price (C.P.) − Selling Price (S.P.) (used when C.P. > S.P.). Once the loss is known, we can calculate the loss percentage using the formula:

Loss Percentage Formula: L% = (Loss / Cost price) × 100.

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Calculate Loss Percentage

Calculating loss percentage is important because it helps us understand how much money is lost when selling an item for less than its cost price. Here are the steps for calculating loss percentage:

• Step 1: Know the Cost Price and Selling Price: First, check the cost price (C.P.) and selling price (S.P.) of the item.

• Step 2: Find the Loss: Subtract the selling price from the cost price: Loss = C.P. − S.P.

• Step 3: Use the loss percentage formula: Put the loss and cost price in the formula: Loss Percentage = (Loss ÷ C.P.) × 100

• Step 4: Write the Answer: Add the % sign to show the percentage of loss.

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What is Profit Percentage Formula?

Profit percentage formula is used to show how much profit is made on a product as a percentage. When the selling price (S.P.) of an item is more than its cost price (C.P.), there is a profit. The profit percentage tells us what percentage of the cost price is gained as profit.

The profit percentage formula is: Profit Percentage (P%) = (Profit ÷ Cost Price) × 100. Here, Profit = Selling Price − Cost Price.

Also read: Know Easy Ways to Calculate Profit with Examples

Loss Percentage Examples With Solutions

Loss percentage examples given below with solutions help us understand how to calculate the loss and its percentage in real-life situations. These examples also help students to understand how to apply the loss percentage formula while solving related questions in exams.

Loss Percantage Example 1: Ankit bought a box of chocolates for Rs. 200 and sold it to his friend for Rs. 180. Find the loss and the loss percentage.

Solution:

C.P. = Rs. 200
S.P. = Rs. 180

Step 1: Find the Loss:
Loss = C.P. − S.P. = 200 − 180 = Rs. 20

Step 2: Find Loss %:
Loss Percentage Formula = (Loss ÷ C.P.) × 100 = (20 ÷ 200) × 100 = 10%

Answer: Loss = Rs. 20, Loss Percentage = 10%

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Loss Percentage Example 2: Priya sold her old bicycle for Rs. 940 and lost 6%. Using the loss percentage formula, find the original price of the bicycle.

Solution:

Given: S.P. = Rs. 940, Loss % = 6%, C.P. = Not given

If loss is 6%, then S.P. = 94% of C.P.
So, 94% of C.P. = 940
C.P. = 940 × 100 ÷ 94 = Rs. 1000

Answer: The cost price of the bicycle is Rs. 1000.

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Loss Percentage Example 3: Ramesh bought a jacket for Rs. 1500 and had to spend Rs. 100 for dry cleaning before selling it. He sold the jacket for Rs. 1400. Find his loss percentage.

Solution:

Total C.P. = 1500 + 100 = Rs. 1600
S.P. = Rs. 1400

Loss = 1600 − 1400 = Rs. 200

Loss Percentage Formula = (200 ÷ 1600) × 100 = 12.5%

Answer: Loss = Rs. 200, Loss Percentage = 12.5%

Example 4: A shopkeeper bought a dining table for Rs. 5000. After some scratches, he sold it for Rs. 4700. Calculate the loss and loss percentage.

Solution:

C.P. = Rs. 5000
S.P. = Rs. 4700

Loss = 5000 − 4700 = Rs. 300

Loss Percentage Formula = (300 ÷ 5000) × 100 = 6%

Answer: Loss = Rs. 300, Loss Percentage = 6%

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