Loss Percentage Formula with Solved Examples (2024)

Loss percentage formula

Everything you need to know about the Loss percentage formula is provided below. Please proceed to read the whole document carefully to understand the topic completely.

In mathematics, the method for calculating the proportion of the loss that occurred in any firm is referred to as the “loss percentage formula.” We also provide it in the form of a percentage loss. Loss is the difference between something’s purchase and sale price.

And the amount of money lost as a percentage is the amount of money lost as a percentage of the actual cost price. In the world of business, the phrases profit and loss are among the most often encountered. The term “profit” refers to the money the proprietors of a company make after deducting their expenses.

Loss = CP -SP

Where CP>SP

Whereas the cost price, or CP, refers to the real price of the product or commodity, and the selling price, or SP, refers to the price at which the product was sold to the client.

The formula for Loss Percentage

It is considered a loss for a company’s business if the cost price of a product is more than the selling price, but a profit may be made if the cost price of the product is lower than the price at which it is being sold.

Loss percentage= Loss/CP x 100.

Solved Examples

Q. Determine the loss as well as the loss percentage is given that the cost price is 50 rupees and the selling price is 45 rupees.

Given,

CP= 50 Rs.

SP= 45Rs.

Loss = CP-SP

=50-45

=Rs. 5

Therefore there is a loss of 5rs while selling.

To find percentage-

Loss% = Loss/CP x 100

=5/50 x 100

=10%

Therefore there is a loss percentage of 10%.

Q. If a guy spent Rupees 50 Lakh to buy a property and then sold it for Rupees 45 Lakh. What is the proportion of profit that this business produces?

Since CP= 50lakh

And, SP= 45 Lakh

Loss= 5Lakh

Therefore there is a loss of 5 lakh rs in the given transaction.

So to calculate the loss percentage-

Loss %= Loss/CP x 100

=500000/5000000 x 100

=10%

Therefore, there is a loss percentage of 10% in the said transaction.

Loss Percentage Formula with Solved Examples (2024)

FAQs

Loss Percentage Formula with Solved Examples? ›

The formula for Loss Percentage

It is considered a loss for a company's business if the cost price of a product is more than the selling price, but a profit may be made if the cost price of the product is lower than the price at which it is being sold. Loss percentage= Loss/CP x 100.

What is the formula for loss percentage with examples? ›

The formula for Loss Percentage

It is considered a loss for a company's business if the cost price of a product is more than the selling price, but a profit may be made if the cost price of the product is lower than the price at which it is being sold. Loss percentage= Loss/CP x 100.

What is the formula for losing percentage? ›

Loss percentage is calculated as, Loss percentage(L%) = (Loss / Cost price) × 100.

What is an example of how do you calculate loss? ›

Loss: When the cost price is higher than the selling price, and the difference between them is the loss suffered. Formula: Loss = C.P. – S.P. Remember: Loss or Profit is always computed on the cost price. Marked Price/List Price: price at which the selling price on an article is marked.

How do you calculate mean percentage loss? ›

(original value−new value )original value×100=Percentage decrease.

How do I calculate my loss? ›

To calculate your profit or loss, subtract the current price from the original price, also called the "cost basis." The percentage change takes the result from above, divides it by the original purchase price, and multiplies that by 100.

How do you solve for percentage formula? ›

To calculate the percentage of a number out of the total number, just use the formula number / total number × 100. An increase or decrease in any quantity can be expressed as a percentage.

How do you calculate reduced percentage? ›

Step 1: Find out the difference between the numbers, i.e., Decrease = Old value - New value. Step 2: Divide the decrease by the old value and multiply it by 100. This makes the percent decrease formula, Percent Decrease = [(Old Value - New Value) / Old Value] × 100]

How to calculate percentage increase or decrease? ›

To find the percent change, you first subtract the earlier index value from the later one, then divide that difference by the earlier index value, and finally multiply the result by 100.

How do you calculate the loss rate? ›

Loss Ratio = (Incurred Losses / Earned Premiums) * 100

Once you have the incurred losses and earned premiums values, simply divide the incurred losses by the earned premiums and multiply the result by 100 to get the loss ratio as a percentage.

What is loss with example? ›

Loss (L): If a product is sold at a price less than its cost price then the seller makes a loss. For example, a phone is bought at Rs 20,000 and a year later it was sold for Rs 12,000 then the seller made a loss of Rs 8000.

How to calculate weight loss percentage? ›

The following formula determines percentage of weight loss: (Starting weight minus current weight) / (starting weight) x 100 equals % of body weight loss. If current weight is less than 5% of usual body weight, the weight change is considered not significant.

How do you calculate total percentage loss? ›

Determining Percentage Gain or Loss
  1. Take the selling price and subtract the initial purchase price. ...
  2. Take the gain or loss from the investment and divide it by the original amount or purchase price of the investment.
  3. Finally, multiply the result by 100 to arrive at the percentage change in the investment.

What is the formula for the loss percentage? ›

What is the Profit and Loss Percentage Formula? The formula to calculate the profit percentage is: Profit % = Profit/Cost Price × 100. The formula to calculate the loss percentage is: Loss % = Loss/Cost Price × 100.

How do you calculate win or loss percentage? ›

The win-loss ratio is calculated as the percentage of won opportunities over lost opportunities. For example, if your team had 3 won opportunities and 7 lost opportunities, the Win-Loss Ratio is 42.8% (3 / 7 = 42.8%).

How do you find the percentage decrease example? ›

Examples of how to calculate percentage decrease
  1. Subtract the new test score from the old test score. 87 - 82 = 5.
  2. Divide the difference between the two scores by the original test score. 5 / 87 = . 057.
  3. Multiply this number by 100 to determine the percentage decrease. . 057 x 100 = 5.7%
Apr 9, 2024

How do you calculate percentage loss from selling price? ›

Formula
  1. Cost price + profit = selling price of the product.
  2. Selling price = market price – discount over the product.
  3. Selling price = 100 + profit percent/100×cost price.
  4. Selling price =100 – loss percent/100× cost price.

What is an example of loss and profit percentage? ›

Profit and Loss Examples

If a salesperson has bought a textile material for Rs.300 and has to sell it for Rs.250/-, he has gone through a loss of Rs.50/-. Suppose Ram brings a football for Rs. 500/- and sells it to his friend for Rs. 600/-, then Ram has made a profit of Rs.100 with a gain percentage of 20%.

How do you calculate percentage growth or loss? ›

To calculate the percentage growth rate, use the basic growth rate formula: subtract the original from the new value and divide the results by the original value. To turn that into a percent increase, multiply the results by 100.

References

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