Profit, Loss and Discount in Rupees: Class 5 Study Guide
Shopkeepers buy at one price and sell at another. The difference is profit or loss.
The cost price (CP) is what a shopkeeper pays to buy something. The selling price (SP) is what the customer pays. If SP is more than CP, there is a profit. If SP is less than CP, there is a loss.
A discount is an amount taken off the marked price. The price the customer pays is the marked price minus the discount.
Formulas
| Idea | How to find it |
|---|---|
| Profit | SP − CP (when SP is more) |
| Loss | CP − SP (when CP is more) |
| Discount | Marked price − selling price |
| Price after a discount | Marked price − discount |
Worked example
A shopkeeper buys a bag for ₹400 and sells it for ₹460. Profit = 460 − 400 = ₹60. Another shopkeeper buys a toy for ₹250 and sells it for ₹210. Loss = 250 − 210 = ₹40. A shirt marked at ₹800 has a discount of ₹120. Price paid = 800 − 120 = ₹680.
Which is bigger?
That gives profit or loss.
Profit if SP is bigger, loss if CP is bigger.
In rupees.
Discount in percent
A discount can be given as a percentage. 10% of ₹500 is ₹50, because 10% means 10 out of every 100, or one tenth. So a ₹500 jacket at 10% off costs 500 − 50 = ₹450. 20% is two tenths, so 20% of ₹500 is ₹100.
Worked examples and common mistakes
Example: CP ₹90, SP ₹110. Profit = ₹20. Example: Marked ₹250 with 10% discount. Discount = ₹25, price = ₹225. Common mistakes: mixing up CP and SP, writing both profit and loss, and subtracting the percentage number straight from the price (₹500 − 10 is not the answer). Convert the percentage to rupees first.
Check your understanding: model answers
1. ₹15. 2. A loss of ₹30. 3. ₹80.
✨ Key Takeaways
- Profit = SP − CP when SP is more.
- Loss = CP − SP when CP is more.
- Price after discount = marked price − discount.
- 10% means 10 out of every 100.
💬 Questions for Discussion & Reflection
- CP ₹60 and SP ₹75. Find the profit.
- A ₹300 toy is sold for ₹270. Is it a profit or a loss, and how much?
- Find 10% of ₹800.
Print giving change worksheets (rupees) →