# CP Formula

The CP formula is used to calculate the CP. 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. 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 basic CP formulas given in the image below:

**Formula 1:** If we earn a profit while selling a product, we use the following CP formula.

Cost price formula = Selling Price - Profit

**Formula 2:** If we incur a loss while selling a product, we use the following CP formula.

Cost price formula** **= Selling Price + Loss

**Formula 3: **CP formula using gain (profit) percentage and selling price is given as,

Cost price formula = {100/(100 + Profit%)} × SP.

**Formula 4: **CP formula using loss percentage and SP is given as,

Cost price formula = {100/(100 – Loss%)} × SP.

## Examples on 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. Using the CP Formula can you calculate 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**

**Example 3: **On selling a chair for $900, Jamie loses 6%. For how much did she purchase it? Calculate the CP using the CP formula.

**Solution:**

Given, Loss = 6%; SP = $900; CP = ?

If loss is 6%, it means that if the cost price is $100, the loss incurred is $6.

If CP is $100, then SP is $94

When SP is 94, CP = $100

When SP is $900

CP = (100/94) × 900 = $957.44

∴ CP = $957.44

**Answer: The cost price of the chair is $957.44.**

## FAQs on CP Formula

### What Is the CP Formula When Gain Percentage Is Given?

CP formula when gain (profit) percentage and selling price is given as, Cost price formula = {100/(100 + Profit%)} × SP.

### What Is the CP Formula When Loss Percentage Is Given?

CP formula when loss percentage and SP is given is expressed as, Cost price formula = {100/(100 – Loss%)} × SP.

### What Is the CP Formula When Selling Price and Profit Is Given?

If we earn a profit while selling a product, we use the following CP formula. Cost price formula = Selling Price - Profit

### What Is the CP Formula When Selling Price and Loss Is Given?

If we suffer a loss while selling a product, we use the following CP formula. Cost price formula** **= Selling Price + Loss