CAT Profit, Loss and Discount formula sheet, free to download as a 4-page PDF. The topic carries about 9 to 12 marks across 3 to 4 questions a year, and takes roughly ten minutes to work through, so it earns a slot before the exam.
Built for revision, so every line trades explanation for speed. Read the working behind each formula in the full Profit, Loss and Discount notes before leaning on this sheet.
Two Bases, Never Swapped
The single biggest source of lost marks in this topic is measuring the wrong percentage against the wrong price.
- Profit and loss percent are always read off Cost Price
- Discount percent is always read off Marked Price
- A profit of 25% does not put CP at 75% of SP. CP equals SP times 100 over 125
Chaining Discounts Without Adding Them
Two discounts in a row multiply as factors, the same shape as any successive percentage change.
- 20% then 10% off multiplies to 0.8 times 0.9, an effective 28% off, not 30%
- Order never changes the total, since multiplication commutes
- A markup of x% followed by a discount of d% nets x minus d minus xd over 100 profit
That last line is worth checking once with real numbers. A markup of 40% followed by a 25% discount nets 40 minus 25 minus 10, a 5% profit, not the 15% a quick subtraction would suggest.
Batch Pricing Without a CP or SP Value
CAT sometimes states cost and selling price in the same sentence, as a count of articles rather than a rupee figure.
- Cost price of x articles equal to selling price of y articles gives profit of x minus y over y, as a percentage
- The x equals y case is the break-even point, where neither side gains
- Spot the setup from wording like "cost price of n articles equals the selling price of m articles"
The False Weight Trick
A shop can advertise no markup at all and still profit, by handing over less than the stated weight.
- Profit percent equals true weight minus false weight, over false weight, times 100
- Claiming 1000 grams but delivering 800 grams gives a 25% profit at the same sticker price
- Combined with a stated profit percent on top, the two multipliers on cost price combine before subtracting one, never by adding the two percentages
Profit, Loss and Discount Worked Through on Video
Source: MBA Wallah
How to Revise From It
The closing page repeats every formula in one table, each checked against a cost price of 100.
- Cover the formula column and reproduce it from the quantity name
- Fix which base each line uses before writing anything down
- Re-derive the markup-then-discount formula rather than memorising the final expression alone
- Check for a false-weight trick whenever a question mentions weights or measures
CAT Profit Loss Discount Formula Sheet FAQs
Ques. Is discount always calculated on cost price?
Ans. No. Discount is always calculated on marked price, while profit and loss are always calculated on cost price. Mixing the two bases is the single most common error in this topic.
Ques. Do two successive discounts of 20% and 10% add up to 30% off?
Ans. No. The discounts multiply as factors: 0.8 times 0.9 gives 0.72, an effective 28% off. Successive discounts always give a smaller total than adding the two percentages.
Ques. How common is the false weight trick in CAT?
Ans. It appears regularly inside profit and loss sets, usually disguised as a shop selling at cost price while using a lighter weight. The profit comes entirely from the weight gap.
Ques. Can the PDF be downloaded for free?
Ans. Yes. All 4 pages can be read on this page or downloaded at no cost, so it can be printed or kept on a phone for last-minute revision.








Comments