Loss Percentage

The negative financial difference obtained by subtracting the Selling Price from the Cost Price (CP - SP).

The ratio of absolute loss to the Cost Price, written as a percentage value.

A loss indicates that the business did not recover its initial investment. This means the final Selling Price will always be less than 100% of the Cost Price.
To find the Selling Price directly during a loss, multiply the Cost Price by (100 - Loss %) / 100.

If a transaction results in a 10% loss, the Selling Price is exactly 90% of the Cost Price, giving you a quick 10:9 CP-to-SP ratio.

Q: Is a loss percentage ever based on the selling price?

A: Only if the question explicitly states it. Otherwise, always use the Cost Price as your base value.

Standard loss tracking structure.

Problem QueryA wholesaler buys a batch of perishable goods for $500. To clear space, he sells them quickly for $400. Find his loss percentage.

Step-By-Step Solution Path

Find the absolute loss: CP - SP = $500 - $400 = $100.

Set up the percentage formula relative to CP: (Loss / CP) * 100.

Calculate the final value: ($100 / $500) * 100 = 0.20 * 100 = 20%.

Analytical Hint: Make sure to divide the loss amount by the original, higher cost price.

Practice finding financial shortfalls and calculating discounted liquidations.

Q1. An item with a Cost Price of $150 is sold for $120. What is the loss percentage?