1. What is Loss?

Loss occurs when the selling price of an item is less than its cost price. It represents the financial deficit incurred in a business transaction or investment.

2. How Does the Calculator Work?

The calculator uses the basic loss formula:

Where:

• \( Cost\ Price \) — Original purchase price of the item (USD)
• \( Selling\ Price \) — Price at which the item is sold (USD)
• \( Loss \) — Financial loss when selling price is less than cost price (USD)

Explanation: Loss is calculated only when the selling price is lower than the cost price. If selling price equals or exceeds cost price, there is no loss.

3. Importance of Loss Calculation

Details: Calculating loss is essential for financial analysis, business planning, inventory management, and determining the profitability of transactions. It helps businesses make informed decisions about pricing strategies and cost control.

4. Using the Calculator

Tips: Enter cost price and selling price in USD. Both values must be positive numbers. The calculator will automatically compute the loss amount if the selling price is less than the cost price.

5. Frequently Asked Questions (FAQ)

Q1: When does loss occur?
A: Loss occurs when the selling price of an item is less than its original cost price.

Q2: What if selling price equals cost price?
A: When selling price equals cost price, there is no profit and no loss - this is called the break-even point.

Q3: Can loss be negative?
A: No, loss is always a positive value or zero. Negative loss would indicate profit.

Q4: How is loss percentage calculated?
A: Loss percentage = (Loss / Cost Price) × 100%

Q5: Why is loss calculation important in business?
A: Loss calculation helps businesses identify unprofitable products, optimize pricing strategies, control costs, and improve overall financial performance.