Margin 2 Sets Calculator — Blended Margin
Enter the revenue and cost for two product sets or business segments to compute each set's individual margin and the revenue-weighted blended margin across both.
Revenue-weighted combined margin across both sets
- 1
Set A gross profit
100 − 60 = 40 - 2
Set B gross profit
200 − 140 = 60 - 3
Total revenue
100 + 200 = 300 - 4
Total gross profit
40 + 60 = 100 - 5
Blended margin
100 ÷ 300 × 100 = 33.33Revenue-weighted margin across both sets.
How does this calculator work?
Blended margin = (total gross profit) ÷ (total revenue) × 100%, weighted by revenue. Enter revenue and cost for Set A and Set B to get each individual margin, the blended margin, and a bar comparison. The blended margin is pulled toward the margin of the higher-revenue set.
Formula
How this is calculated
When a business sells more than one product or operates multiple segments, the overall gross margin is a revenue-weighted average of the individual margins — not a simple average. The blended margin equals total gross profit divided by total revenue: (ProfitA + ProfitB) / (RevA + RevB) × 100.
The blended margin always lies between the two individual margins when both show positive profit, pulled toward the margin of the larger-revenue set. If Set B has three times the revenue of Set A, Set B's margin has three times the influence on the blended result. This is why a profitable niche product may have little impact on overall profitability when combined with a large, lower-margin core product.
This calculator is useful for product-mix analysis and pricing decisions: you can see immediately how shifting revenue between sets changes the blended margin, without needing a full spreadsheet model.
Frequently asked questions
A simple average weights both sets equally regardless of size. The blended margin weights each set by its revenue, so a larger-revenue set has more influence. For example, 10% margin on €1,000 combined with 40% margin on €100 gives a blended margin much closer to 10% than 40%.
Either improve the margin of one or both sets (reduce costs or raise prices) or shift the sales mix toward the higher-margin set — selling proportionally more of the more profitable product raises the blended margin without changing either individual margin.
No — if both sets have positive revenue and both profits are positive, the blended margin always falls between the two individual margins. It can only fall outside that range if one set has a negative profit (costs exceed revenue).
TG we-Calculate Editorial Team. (2026). Margin 2 Sets Calculator — Blended Margin [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/margin-2-sets-calculator
TG we-Calculate Editorial Team. "Margin 2 Sets Calculator — Blended Margin." TG we-Calculate. 2026. https://we-calculate.com/calculator/margin-2-sets-calculator.
TG we-Calculate Editorial Team, "Margin 2 Sets Calculator — Blended Margin," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/margin-2-sets-calculator
@misc{wecalculate_margin_2_sets_calculator, title = {Margin 2 Sets Calculator — Blended Margin}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/margin-2-sets-calculator}}, year = {2026}, note = {TG we-Calculate} }
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