August 17, 2026

20 Profit and Loss MCQs with Answers

Profit and Loss is a fundamental topic in quantitative aptitude and is frequently used in placement tests, competitive examinations, entrance tests, and recruitment assessments. These questions test your understanding of cost price, selling price, profit, loss, discount, and percentage calculations.

This practice set contains 20 original Profit and Loss MCQs with answers and detailed solutions.

📚 Want to practice more aptitude topics? Visit our [Free Aptitude Tests and MCQs for Placements, Competitive Exams and Interview Preparation] page for topic-wise tests covering Quantitative Aptitude, Logical Reasoning, Verbal Ability, Computer Aptitude, Data Interpretation, and placement preparation.

Try to answer all 20 questions first.

Answers and solutions are provided after Question 20.

Profit and Loss MCQ Test

Question 1

An article is bought for ₹800 and sold for ₹920. What is the profit?

A. ₹100
B. ₹110
C. ₹120
D. ₹140

Question 2

An item is purchased for ₹1,200 and sold for ₹1,080. What is the loss percentage?

A. 8%
B. 10%
C. 12%
D. 15%

Question 3

A product costs ₹1,500 and is sold at a profit of 20%. What is the selling price?

A. ₹1,650
B. ₹1,700
C. ₹1,800
D. ₹1,850

Question 4

An article is sold for ₹1,350 at a loss of 10%. What was its cost price?

A. ₹1,450
B. ₹1,500
C. ₹1,550
D. ₹1,600

Question 5

A shopkeeper buys a bag for ₹2,400 and sells it for ₹2,760. What is the profit percentage?

A. 12%
B. 15%
C. 18%
D. 20%

Question 6

A chair is sold for ₹1,530 at a profit of 20%. What was its cost price?

A. ₹1,250
B. ₹1,275
C. ₹1,300
D. ₹1,350

Question 7

A product marked at ₹2,000 is sold at a discount of 15%. What is the selling price?

A. ₹1,650
B. ₹1,700
C. ₹1,750
D. ₹1,800

Question 8

A shopkeeper buys an item for ₹1,600, marks it 25% above cost price, and then gives a discount of 10% on the marked price. What is the final selling price?

A. ₹1,760
B. ₹1,800
C. ₹1,820
D. ₹1,850

Question 9

An article is sold at a profit of 25% for ₹2,500. What is its cost price?

A. ₹1,900
B. ₹2,000
C. ₹2,100
D. ₹2,250

Question 10

A seller incurs a loss of 20% by selling a product for ₹960. What was the cost price?

A. ₹1,120
B. ₹1,160
C. ₹1,200
D. ₹1,240

Question 11

A product is sold for ₹3,600 after a 10% discount on the marked price. What was the marked price?

A. ₹3,800
B. ₹3,900
C. ₹4,000
D. ₹4,200

Question 12

A shopkeeper gains 12% by selling an article for ₹2,240. What was the cost price?

A. ₹1,900
B. ₹2,000
C. ₹2,040
D. ₹2,100

Question 13

An item is sold for ₹1,840 at a loss of 8%. What was its cost price?

A. ₹1,920
B. ₹1,960
C. ₹2,000
D. ₹2,040

Question 14

A trader buys an article for ₹3,000 and wants to make a profit of 18%. At what price should it be sold?

A. ₹3,420
B. ₹3,480
C. ₹3,540
D. ₹3,600

Question 15

An article is marked 40% above its cost price and sold at a discount of 20% on the marked price. What is the profit percentage?

A. 8%
B. 10%
C. 12%
D. 14%

Question 16

Cherry buys a device for ₹5,000 and spends ₹500 on repairs. She sells it for ₹6,050. What is her profit percentage on total cost?

A. 8%
B. 10%
C. 12%
D. 15%

Question 17

A shopkeeper sells two items for ₹1,200 each. On one item he gains 20%, and on the other he loses 20%. What is the overall result?

A. No profit, no loss
B. 2% loss
C. 4% loss
D. 4% profit

Question 18

A seller marks an item 30% above cost price and gives a discount of 10% on the marked price. What is the profit percentage?

A. 15%
B. 16%
C. 17%
D. 18%

Question 19

An article is sold at a 15% profit. If the cost price is increased by 20% but the selling price remains unchanged, what is the new profit or loss percentage?

A. 4.17% profit
B. 4.17% loss
C. 5% profit
D. 5% loss

Question 20

A shopkeeper allows a discount of 20% on the marked price and still makes a profit of 25% on cost price. If the cost price is ₹1,600, what is the marked price?

A. ₹2,400
B. ₹2,500
C. ₹2,600
D. ₹2,750

Answers and Detailed Solutions

Answer 1: C — ₹120

Cost Price:

₹800

Selling Price:

₹920

Profit:

[
920-800=120
]

Therefore:

Correct Answer: ₹120

Answer 2: B — 10%

Cost Price:

₹1,200

Selling Price:

₹1,080

Loss:

[
1200-1080=120
]

Loss percentage:

[
\frac{120}{1200}\times100
]

[
=10%
]

Therefore:

Correct Answer: 10%

Answer 3: C — ₹1,800

Cost Price:

₹1,500

Profit:

20%

Selling Price:

[
1500\times\frac{120}{100}
]

[
=1800
]

Therefore:

Correct Answer: ₹1,800

Answer 4: B — ₹1,500

The article is sold at a 10% loss.

Therefore, selling price represents:

[
90%
]

of cost price.

Given:

[
90%\text{ of CP}=1350
]

Therefore:

[
CP=\frac{1350\times100}{90}
]

[
=1500
]

Therefore:

Correct Answer: ₹1,500

Answer 5: B — 15%

Cost Price:

₹2,400

Selling Price:

₹2,760

Profit:

[
2760-2400=360
]

Profit percentage:

[
\frac{360}{2400}\times100
]

[
=15%
]

Therefore:

Correct Answer: 15%

Answer 6: B — ₹1,275

Selling price = ₹1,530

Profit = 20%

Therefore:

[
SP=120%\text{ of CP}
]

So:

[
CP=\frac{1530\times100}{120}
]

[
=1275
]

Therefore:

Correct Answer: ₹1,275

Answer 7: B — ₹1,700

Marked Price:

₹2,000

Discount:

15%

Discount amount:

[
2000\times\frac{15}{100}=300
]

Selling Price:

[
2000-300=1700
]

Therefore:

Correct Answer: ₹1,700

Answer 8: B — ₹1,800

Cost Price:

₹1,600

Marked 25% above cost:

[
1600\times1.25=2000
]

Discount = 10%

Selling Price:

[
2000\times0.90
]

[
=1800
]

Therefore:

Correct Answer: ₹1,800

Answer 9: B — ₹2,000

Selling Price:

₹2,500

Profit:

25%

Therefore:

[
SP=125%\text{ of CP}
]

So:

[
CP=\frac{2500\times100}{125}
]

[
=2000
]

Therefore:

Correct Answer: ₹2,000

Answer 10: C — ₹1,200

Selling price represents 80% of cost price because the loss is 20%.

[
80%\text{ of CP}=960
]

Therefore:

[
CP=\frac{960\times100}{80}
]

[
=1200
]

Therefore:

Correct Answer: ₹1,200

Answer 11: C — ₹4,000

A 10% discount means selling price is 90% of marked price.

[
90%\text{ of MP}=3600
]

Therefore:

[
MP=\frac{3600\times100}{90}
]

[
=4000
]

Therefore:

Correct Answer: ₹4,000

Answer 12: B — ₹2,000

Selling Price:

₹2,240

Profit:

12%

Therefore:

[
SP=112%\text{ of CP}
]

[
CP=\frac{2240\times100}{112}
]

[
=2000
]

Therefore:

Correct Answer: ₹2,000

Answer 13: C — ₹2,000

Selling Price:

₹1,840

Loss:

Therefore:

[
SP=92%\text{ of CP}
]

[
CP=\frac{1840\times100}{92}
]

[
=2000
]

Therefore:

Correct Answer: ₹2,000

Answer 14: C — ₹3,540

Cost Price:

₹3,000

Required profit:

18%

Profit:

[
3000\times\frac{18}{100}
]

[
=540
]

Selling Price:

[
3000+540=3540
]

Therefore:

Correct Answer: ₹3,540

Answer 15: C — 12%

Assume Cost Price = ₹100.

Marked price is 40% higher:

[
MP=140
]

Discount = 20%

Selling Price:

[
140\times0.80
]

[
=112
]

Profit:

[
112-100=12
]

Profit percentage:

[
12%
]

Therefore:

Correct Answer: 12%

Answer 16: B — 10%

Purchase Price:

₹5,000

Repair Cost:

₹500

Total Cost:

[
5000+500=5500
]

Selling Price:

₹6,050

Profit:

[
6050-5500=550
]

Profit percentage:

[
\frac{550}{5500}\times100
]

[
=10%
]

Therefore:

Correct Answer: 10%

Answer 17: C — 4% loss

Both items are sold for ₹1,200 each.

For the first item, profit = 20%.

Therefore:

[
CP_1=\frac{1200\times100}{120}
]

[
=1000
]

For the second item, loss = 20%.

Therefore:

[
CP_2=\frac{1200\times100}{80}
]

[
=1500
]

Total Cost Price:

[
1000+1500=2500
]

Total Selling Price:

[
1200+1200=2400
]

Loss:

[
2500-2400=100
]

Loss percentage:

[
\frac{100}{2500}\times100
]

[
=4%
]

Therefore:

Correct Answer: 4% loss

Answer 18: C — 17%

Assume Cost Price = ₹100.

Marked 30% above cost:

[
MP=130
]

Discount = 10%.

Selling Price:

[
130\times0.90
]

[
=117
]

Profit:

[
117-100=17
]

Therefore:

Profit Percentage = 17%

Correct Answer:

17%

Answer 19: B — 4.17% loss

Assume original Cost Price = ₹100.

Original selling price at 15% profit:

[
SP=115
]

Now cost price increases by 20%.

New cost price:

[
100\times1.20=120
]

Selling price remains:

[
115
]

Loss:

[
120-115=5
]

Loss percentage:

[
\frac{5}{120}\times100
]

[
=4.1667%
]

Approximately:

4.17% loss

Therefore:

Correct Answer: 4.17% loss

Answer 20: B — ₹2,500

Cost Price:

₹1,600

Profit = 25%

Required Selling Price:

[
1600\times1.25
]

[
=2000
]

The shopkeeper gives a discount of 20%.

Therefore, the selling price represents:

[
80%\text{ of Marked Price}
]

So:

[
0.80\times MP=2000
]

Therefore:

[
MP=\frac{2000}{0.80}
]

[
=2500
]

Therefore:

Correct Answer: ₹2,500

Quick Answer Key

Question	Answer	Question	Answer
1	C	11	C
2	B	12	B
3	C	13	C
4	B	14	C
5	B	15	C
6	B	16	B
7	B	17	C
8	B	18	C
9	B	19	B
10	C	20	B

How Did You Score?

Correct Answers	Performance
18–20	Excellent — You have a strong command of Profit and Loss concepts.
15–17	Very Good — Your fundamentals are strong; revise marked-price and discount problems.
11–14	Good — Practice reverse cost-price and successive percentage questions.
6–10	Needs Practice — Review basic profit, loss, discount, and percentage formulas.
0–5	Beginner — Start with Cost Price, Selling Price, Profit and Loss basics.

Important Profit and Loss Formulas

Profit

[
\text{Profit}=\text{Selling Price}-\text{Cost Price}
]

when:

[
SP>CP
]

Loss

[
\text{Loss}=\text{Cost Price}-\text{Selling Price}
]

when:

[
CP>SP
]

Profit Percentage

[
\text{Profit %}

\frac{\text{Profit}}{\text{Cost Price}}\times100
]

Loss Percentage

[
\text{Loss %}

\frac{\text{Loss}}{\text{Cost Price}}\times100
]

Selling Price at a Profit of (p%)

[
SP=CP\times\frac{100+p}{100}
]

Selling Price at a Loss of (p%)

[
SP=CP\times\frac{100-p}{100}
]

Cost Price When Profit Percentage Is Known

[
CP=SP\times\frac{100}{100+\text{Profit %}}
]

Cost Price When Loss Percentage Is Known

[
CP=SP\times\frac{100}{100-\text{Loss %}}
]

Marked Price and Discount

The Marked Price is the price displayed before a discount is applied.

Discount:

[
\text{Discount}=\text{Marked Price}-\text{Selling Price}
]

Discount Percentage:

[
\text{Discount %}

\frac{\text{Discount}}{\text{Marked Price}}\times100
]

Selling Price after a discount of (d%):

[
SP=MP\times\frac{100-d}{100}
]

A Common Profit and Loss Mistake

Profit or loss percentage is generally calculated on Cost Price, not Selling Price.

For example:

Cost Price = ₹500

Selling Price = ₹600

Profit:

[
600-500=100
]

Profit percentage:

[
\frac{100}{500}\times100=20%
]

Do not calculate:

[
\frac{100}{600}\times100
]

because ₹600 is the selling price, not the cost base used in the standard profit-percentage formula.

Equal Profit and Loss Percentages

A particularly important aptitude concept is that selling two products at the same selling price, one at (x%) profit and another at (x%) loss, results in an overall loss.

For equal percentage profit and loss:

[
\text{Overall Loss %}=\frac{x^2}{100}
]

For example, if:

[
x=20
]

then:

[
\frac{20^2}{100}

\frac{400}{100}

4%
]

Therefore, a 20% gain on one item and a 20% loss on another, when both have the same selling price, results in a:

4% overall loss

Topics Covered in This Test

This Profit and Loss test covered:

Cost Price
Selling Price
Profit
Loss
Profit Percentage
Loss Percentage
Marked Price
Discount
Reverse Cost Price
Repair and additional costs
Equal profit and loss percentages
Markup and discount combinations
Changing cost price
Successive commercial calculations

These concepts are closely connected with Percentages, Simple Interest, Compound Interest, Ratio and Proportion, and Data Interpretation.

Frequently Asked Questions

What is Cost Price?

Cost Price, usually written as CP, is the amount paid to purchase or produce an article.

What is Selling Price?

Selling Price, or SP, is the amount for which an article is sold.

When is there a profit?

There is a profit when:

[
SP>CP
]

When is there a loss?

There is a loss when:

[
SP<CP
]

What is Marked Price?

Marked Price is the price displayed on an article before any discount is applied.

On which value is profit percentage calculated?

Profit percentage is normally calculated on the Cost Price.

On which value is discount percentage calculated?

Discount percentage is calculated on the Marked Price.

Are Profit and Loss questions important for placement aptitude tests?

Yes. They are common quantitative aptitude questions and also test practical understanding of percentages and commercial arithmetic.

What should I learn before Profit and Loss?

A clear understanding of percentages makes Profit and Loss considerably easier.

Conclusion

Profit and Loss questions become much easier once you clearly distinguish between:

Cost Price → Marked Price → Discount → Selling Price → Profit/Loss

The most important habit is to identify the correct base value before calculating a percentage.

For profit and loss:

Cost Price is usually the base.

For discount:

Marked Price is the base.

Regular practice with reverse calculations, discounts, and combined markup-discount problems will improve both accuracy and speed.

📚 Continue your aptitude preparation: Return to [Free Aptitude Tests and MCQs for Placements, Competitive Exams and Interview Preparation] to explore the complete collection of Quantitative Aptitude, Logical Reasoning, Verbal Ability, Computer Aptitude, Data Interpretation, and Placement Preparation tests.

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1 thought on “20 Profit and Loss MCQs with Answers”

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20 Profit and Loss MCQs with Answers

20 Profit and Loss MCQs with Answers

Profit and Loss MCQ Test

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Answers and Detailed Solutions

Answer 1: C — ₹120

Answer 2: B — 10%

Answer 3: C — ₹1,800

Answer 4: B — ₹1,500

Answer 5: B — 15%

Answer 6: B — ₹1,275

Answer 7: B — ₹1,700

Answer 8: B — ₹1,800

Answer 9: B — ₹2,000

Answer 10: C — ₹1,200

Answer 11: C — ₹4,000

Answer 12: B — ₹2,000

Answer 13: C — ₹2,000

Answer 14: C — ₹3,540

Answer 15: C — 12%

Answer 16: B — 10%

Answer 17: C — 4% loss

Answer 18: C — 17%

Answer 19: B — 4.17% loss

Answer 20: B — ₹2,500

Quick Answer Key

How Did You Score?

Important Profit and Loss Formulas

Profit

Loss

Profit Percentage

[\text{Profit %}

Loss Percentage

[\text{Loss %}

Selling Price at a Profit of (p%)

Selling Price at a Loss of (p%)

Cost Price When Profit Percentage Is Known

Cost Price When Loss Percentage Is Known

Marked Price and Discount

[\text{Discount %}

A Common Profit and Loss Mistake

Equal Profit and Loss Percentages

[\frac{20^2}{100}

\frac{400}{100}

Topics Covered in This Test

Frequently Asked Questions

What is Cost Price?

What is Selling Price?

When is there a profit?

When is there a loss?

What is Marked Price?

On which value is profit percentage calculated?

On which value is discount percentage calculated?

Are Profit and Loss questions important for placement aptitude tests?

What should I learn before Profit and Loss?

Conclusion

Further Reading

1 thought on “20 Profit and Loss MCQs with Answers”

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[
\text{Profit %}

[
\text{Loss %}

[
\text{Discount %}

[
\frac{20^2}{100}