Blended Gross Margin Calculator

About this calculator

When a company sells more than one product line, its overall profitability isn’t the average of each line’s margin percentage — it’s the blended gross margin: total revenue across all lines minus total cost of goods sold (COGS) across all lines, divided by total revenue. A high-margin line with low revenue can be outweighed by a low-margin line that sells in much higher volume.

Finance and operations teams at multi-product businesses use this figure to see true company-wide profitability rather than being misled by a simple average of margin percentages, which ignores each line’s revenue weight. This calculator takes the revenue and COGS for two product lines and returns the blended gross margin.