Enter the average sales revenue of all products ($) and the average COGS of all products ($) into the Blended Margin Calculator. The calculator will evaluate and display the Blended Margin.

## 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 average sales revenue of all products ($)
- AC is the average COGS of all products ($)

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:

- First, determine the average sales revenue of all products ($).
- The average sales revenue of all products ($) is given as: 5,000.

- Next, determine the average COGS of all products ($).
- The average COGS of all products ($) is provided as: 1,000.

- 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:

average sales revenue of all products ($) = 6,000

average COGS of all products ($) = 4,000

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

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