CP Formula
CP is the abbreviation used for cost price. CP is the amount we pay to purchase any commodity. So, CP is nothing but the buying price of a commodity. If CP is less than the selling price, then you earn a profit and if CP is greater than the selling price, then we incur a loss. CP formula is used to calculate the CP. In this section, we will be discussing two CP formulas, and understand the variables involved. Let us learn the CP formula with a few solved examples.
What is the CP Formula?
CP is the amount we pay to buy a commodity. CP is computed by the following two CP formulas.
Formula 1: If we earn a profit while selling a product, we use the following CP formula.
CP = Selling Price  Profit
Formula 2: If we incur a loss while selling a product, we use the following CP formula.
CP = Selling Price + Loss
Let's take a quick look at a few solved examples to understand the CP formula better.
Solved Examples Using CP Formula

Example 1: The selling price of a toy is $ 340 and the profit earned by the shopkeeper is $ 60. Find the cost price of the toy using the CP formula.
Solution:
Here, selling price = $ 340 and profit = $ 60
Using the CP Formula, we get
CP = Selling Price  Profit
= $ (340  60)
= $ 280
Answer: The CP of the toy is $ 280

Example 2: An article was sold for $ 230 at a loss of $ 20. What was its cost price?
Solution:
Here, selling price = $ 230 and loss = $ 20
Using the CP Formula, we get
CP = Selling Price + Loss
= $ (230 + 20)
= $ 250
Answer: The cost price of the article is $ 250