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 ($) 
  • AC is the average COGS of all products ($) 

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 = ?