This page covers SBI PO Successive Profit & Loss with complete concept notes, 17 graded practice MCQs, key points and exam-specific tips. Free to study.
Core ConceptRead this first — the foundation of the topic
Core Concept
When profits and losses are applied one after another, we cannot simply add or subtract the percentages. Each percentage change acts on the new value, not the original price
Key Rules
If successive changes of a% and b% occur, the net effect formula is: Net% = a + b + (ab)/100. Use positive values for profit and negative values for loss. For three successive changes a%, b%, c%, first find net effect of any two, then apply the third change.
Formula BlockMemorise — at least one formula appears in every paper
• Overall profit/loss = Net% of original cost price
Exam PatternsWhat examiners ask — read before attempting PYQs
Questions typically involve 2-3 successive transactions. Common scenarios include buying-selling chains, discount followed by profit, or multiple markups. SSC often asks for overall profit/loss percentage or final selling price.
ShortcutsUse these to save 30–60 seconds per question
For quick calculation, convert percentages to multipliers. 20% profit = 1.2, 10% loss = 0.9. Multiply all factors: 1.2 × 0.9 = 1.08 = 8% overall profit.
Worked ExampleSolve this step-by-step before moving on
1
Step 1
Identify the changes
First transaction: +20% (profit)
Second transaction: -10% (loss)
2
Step 2
Apply the formula
Net% = a + b + (ab)/100
Net% = 20 + (-10) + (20 × (-10))/100
Net% = 20 - 10 - 200/100
Net% = 10 - 2 = 8%
3
Step 3
Verify using multiplier method
Final value = 1000 × 1.20 × 0.90 = 1000 × 1.08 = 1080
Profit = 1080 - 1000 = 80
Profit% = 80/1000 × 100 = 8%
Answer: 8% overall profit
Alternate Method using SP calculation:
After first sale: 1000 × 120/100 = 1200
After second sale: 1200 × 90/100 = 1080
Net profit = 1080 - 1000 = 80
Profit% = 8%
Exam TrapsCommon mistakes students make — avoid these
Students often add percentages directly (20% - 10% = 10%) ignoring the compounding effect. Always remember that each subsequent percentage works on the changed value, not the original price. The interaction term (ab)/100 is crucial and frequently overlooked.
Key Points to Remember
Successive changes cannot be added directly due to compounding effect
Formula for two changes: Net% = a + b + (ab)/100
Use positive values for profit, negative for loss in the formula
Multiplier method: Convert percentages to decimals and multiply
Each subsequent change acts on the new value, not original price
Interaction term (ab)/100 is often the key to correct answers
Three changes: Find net of first two, then apply third change
Final amount = Original × (100+a)/100 × (100+b)/100
Exam-Specific Tips
Net percentage formula for successive changes: a + b + (ab)/100
20% profit converts to multiplier 1.2, 25% loss converts to 0.75
For equal successive profits of x%, net effect is x + x + x²/100
Two successive discounts of 10% each give net discount of 19%
Successive changes of +50% and -20% result in +20% net change
Three successive profits of 10% each give net profit of 33.1%
Formula remains same whether dealing with CP, SP, or marked price
Practice MCQs
Successive Profit & Loss — Practice Questions
17graded MCQs · easy to hard · full solution & trap analysis
A retailer buys a product for ₹400. He marks it up by 50% and then gives two successive discounts of 10% and 20%. What is his profit or loss percentage?
Practice 2easy
A merchant sells an item at a loss of 15%. If he had sold it for ₹200 more, he would have made a profit of 10%. What is the cost price of the item?
Practice 3easy
A trader buys goods for ₹2000 and sells them at a profit of 25%. He then uses this selling price as the cost price for a second transaction and sells at a loss of 20%. What is his overall profit or loss percentage?
Practice 4easy
A vendor buys oranges at ₹8 per dozen and sells them at ₹12 per dozen. Later, he reduces the selling price to ₹10 per dozen. What is the overall profit or loss percentage across both selling scenarios if he sells equal quantities in each scenario?
Practice 5easy
A shopkeeper buys an article for ₹500. He marks it up by 20% and then offers a discount of 10% on the marked price. What is his profit percentage?
Practice 6easy
A shopkeeper marks an article at ₹1200. He gives a discount of 15% on the marked price. If his profit is 20%, what is the cost price of the article?
Practice 7medium
A vendor buys oranges at ₹30 per dozen. He sells 40% of the stock at a profit of 50%, and the remaining stock at a loss of 20%. If he bought 30 dozen oranges, what is his overall profit or loss in rupees?
Practice 8medium
A shopkeeper buys an article at ₹500. He marks it up by 40% and then gives a discount of 10% on the marked price. Later, he sells the remaining stock at a further discount of 20% on the already discounted price. What is his overall profit percentage on the articles sold in the second lot?
Practice 9medium
A merchant purchases goods at ₹2000 per unit. In the first transaction, he sells 60% of the stock at a profit of 25%. In the second transaction, he sells 75% of the remaining stock at a loss of 10%. What is the overall profit or loss percentage on the total goods sold?
Practice 10medium
A trader buys articles at ₹800 each. He sells 50% of them at a profit of 30%, and the remaining 50% at a loss of 15%. If he sells a total of 200 articles, what is his net profit or loss in rupees?
Practice 11medium
A shopkeeper marks up goods by 60% above cost price. He gives a discount of 25% on the marked price. He then gives an additional discount of 20% on the already discounted price to clear old stock. What is his overall profit or loss percentage?
Practice 12medium
A retailer purchases goods at ₹1200 per unit. He marks them up by 50%. He then offers a discount of 30% on the marked price. Later, he offers an additional 10% discount on the discounted price to loyal customers. What is his profit or loss percentage on goods sold to loyal customers?
Practice 13hard
A retailer buys shirts at ₹800 each. He marks them up by 50% and offers a discount of 20% on the marked price. Due to a seasonal sale, he further reduces the discounted price by 15%. If he sells 100 shirts, what is his total profit?
Practice 14hard
A merchant sells an article at a loss of 15%. If he had sold it for ₹72 more, he would have made a profit of 10%. Later, he buys another identical article and sells it at a profit of 20%. What is his total profit on both transactions combined?
Practice 15hard
A trader marks an item 60% above cost price. He gives a discount of 25% on the marked price. He then offers an additional 'buy 2 get 1 free' scheme on the discounted price. What is his overall profit/loss percentage per item sold under this scheme?
Practice 16hard
A shopkeeper buys goods at ₹1200 per dozen. He sells 60% of the stock at 25% profit and the remaining 40% at 10% loss. If he had instead sold all goods at a single uniform profit percentage, what would that percentage be to earn the same total profit?
Practice 17hard
A shopkeeper buys an item at ₹500. He marks it up by 40%, then offers a discount of 10% on the marked price. Later, he sells the remaining stock at a further discount of 20% on the already-discounted price. What is his overall profit percentage on the final sale?
60-Second Revision — Successive Profit & Loss
Remember: Net% = a + b + (ab)/100 for two successive changes
Trick: Use multipliers for faster calculation - multiply all factors
Formula: SP = CP × (100+a)/100 × (100+b)/100
Trap: Never add successive percentages directly
Method: For three changes, find net of any two first, then apply third
Quick check: Positive result means profit, negative means loss