Calculate blended gross margin across products or business lines using revenue and COGS or revenue and the individual margin percentage.

Use amounts from the same period and currency.

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Blended Margin Formula

The following formula is used to calculate the Blended Margin. 

BM = (AS - AC) / AS × 100
  • Where BM is the Blended Margin (%)
  • AS is the total sales revenue of all entered lines ($) 
  • AC is the total COGS of all entered lines ($) 

To calculate a blended margin, subtract the cost of goods sold of all products from the revenue of all products, divide by the revenue, then multiply by 100.

How to Calculate Blended Margin?

The following example problems outline how to calculate Blended Margin.

Example Problem #1:

  1. First, determine the total sales revenue of all entered lines ($).
    • The total sales revenue of all entered lines ($) is given as 5,000.
  2. Next, determine the total COGS of all entered lines ($).
    • The total COGS of all entered lines ($) is provided as 1,000.
  3. Finally, calculate the Blended Margin using the equation above: 

BM = (AS-AC) / AS * 100

The values given above are inserted into the equation below and the solution is calculated:

BM = (5000-1000) / 5000 * 100 = 80 (%)

Example Problem #2: 

For this problem, the variables required are provided below:

total sales revenue of all entered lines ($) = 6,000

total COGS of all entered lines ($) = 4,000

Test your knowledge using the equation and check your answer with the calculator above.

BM = (AS-AC) / AS * 100 = ?