Class 4 - Maths - Profit and Loss

Learning Objectives

Understand the meaning of Cost Price (CP) and Selling Price (SP).
Learn when a shopkeeper makes a profit and when there is a loss.
Calculate profit using the formula: Profit = SP - CP.
Calculate loss using the formula: Loss = CP - SP.

Let Us Begin!

Ramesh runs a small stationery shop near a school in Pune. He buys a box of crayons from the market for Rs 40 and sells it to a student for Rs 55. He gets Rs 15 more than what he paid. This extra money is called profit.

One day, Ramesh buys a geometry box for Rs 80 but can only sell it for Rs 65. He gets Rs 15 less than what he paid. This is called a loss.

Let us learn how to find profit and loss step by step.

Step-by-Step Explanation

What is Cost Price (CP)?

The Cost Price is the amount a shopkeeper pays to buy an item. It is also called the buying price.

Example: Ramesh buys a notebook for Rs 25. The Cost Price (CP) = Rs 25.

What is Selling Price (SP)?

The Selling Price is the amount a shopkeeper receives when he sells the item to a customer.

Example: Ramesh sells the notebook for Rs 35. The Selling Price (SP) = Rs 35.

Think about it: The shopkeeper wants SP to be more than CP. Why? Because that is how he earns money!

When is There a Profit?

When the Selling Price is more than the Cost Price, the shopkeeper makes a profit.

Profit = SP - CP (when SP > CP)

When is There a Loss?

When the Selling Price is less than the Cost Price, the shopkeeper suffers a loss.

Loss = CP - SP (when CP > SP)

When is There No Profit and No Loss?

When the Selling Price is equal to the Cost Price, there is no profit and no loss.

Think about it: A fruit seller in Kolkata buys a dozen bananas for Rs 36 and sells them for Rs 36. Did she make a profit or a loss?

Condition	Result	Formula
SP > CP	Profit	Profit = SP - CP
CP > SP	Loss	Loss = CP - SP
SP = CP	No profit, no loss	--

How to Solve a Problem

Step 1: Write down the CP and SP.

Step 2: Compare them -- is SP greater, smaller, or equal to CP?

Step 3: Use the correct formula to find profit or loss.

Key Words and Meanings

Word	Meaning
Cost Price (CP)	The price at which a shopkeeper buys an item
Selling Price (SP)	The price at which a shopkeeper sells an item
Profit	The extra money earned when SP is more than CP
Loss	The money lost when SP is less than CP

Examples

Example 1: Finding Profit

A shopkeeper in Ahmedabad buys a school bag for Rs 150 and sells it for Rs 200.

CP = Rs 150, SP = Rs 200. Since SP > CP, there is a profit.

Profit = SP - CP = Rs 200 - Rs 150 = Rs 50.

Example 2: Finding Loss

Sunita buys a water bottle for Rs 120 and sells it for Rs 95.

CP = Rs 120, SP = Rs 95. Since CP > SP, there is a loss.

Loss = CP - SP = Rs 120 - Rs 95 = Rs 25.

Example 3: No Profit, No Loss

A vegetable seller in Bengaluru buys tomatoes for Rs 60 and sells them for Rs 60.

CP = Rs 60, SP = Rs 60. Since SP = CP, there is no profit and no loss.

Example 4: Finding SP When Profit is Given

Gopal buys a cricket bat for Rs 250 and makes a profit of Rs 75. What is the SP?

SP = CP + Profit = Rs 250 + Rs 75 = Rs 325.

Key Points to Remember

CP is the buying price. SP is the selling price.
If SP > CP, there is a profit. Profit = SP - CP.
If CP > SP, there is a loss. Loss = CP - SP.
If SP = CP, there is no profit and no loss.
SP = CP + Profit, or SP = CP - Loss.
Always write CP and SP clearly before solving.

Practice Questions

A. Fill in the Blanks

The price at which a shopkeeper buys an item is called the .
The price at which a shopkeeper sells an item is called the .
If SP is greater than CP, the shopkeeper makes a .
If CP is greater than SP, the shopkeeper suffers a .
Profit = - .

B. Multiple Choice Questions

A toy is bought for Rs 45 and sold for Rs 60. The profit is:
(a) Rs 10(b) Rs 15(c) Rs 20(d) Rs 105
CP = Rs 80, SP = Rs 65. This is a case of:
(a) Profit(b) Loss(c) No profit, no loss(d) Cannot tell
If CP = Rs 100 and Profit = Rs 30, then SP is:
(a) Rs 70(b) Rs 100(c) Rs 130(d) Rs 300

C. Find Profit or Loss

Item	CP (Rs)	SP (Rs)
Pen	12	18
Eraser	8	5
Ruler	15	20
Sharpener	10	10
Lunch box	175	200

D. Solve These Word Problems (Show All Steps)

A fruit seller in Mumbai buys oranges for Rs 90 and sells them for Rs 125. Find the profit.
Lakshmi buys a saree for Rs 350 and sells it for Rs 310. Find the loss.
A shopkeeper buys a clock for Rs 275 and makes a profit of Rs 50. What is the selling price?

Think and Do -- Fun Activity

My Little Shop: Imagine you are a shopkeeper at a school mela. You buy 5 items and sell them. Fill in the table below with your own numbers and find the profit or loss for each item.

Item	CP (Rs)	SP (Rs)	Profit / Loss	Amount (Rs)

Total Profit earned: Rs __________ Total Loss suffered: Rs __________

Mathematics -- Class 4

Mathematics -- Class 4 (continued)