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:

  1. First, determine the average sales revenue of all products ($).
    • The average sales revenue of all products ($) is given as: 5,000.
  2. Next, determine the average COGS of all products ($).
    • The average COGS of all products ($) 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:

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 = ?