Blended Margin Calculator
Overall margin across a mixed catalogue.
Blended margin
49.0%
$9,800 on $20,000
The simple average of the three margins is 56.7% — 7.7 points from the real figure, because it ignores how much each product actually sells.
How the Blended Margin Calculator works
Blended margin is the margin your business actually runs at, once the mix of what sells is taken into account. It is almost never the average of your product margins, because a high-margin item that rarely sells barely moves it.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is blended margin calculated?
Total gross profit across all products ÷ total revenue × 100. It must be weighted by revenue — taking a simple average of product margin percentages treats a £5 item and a £500 item as equally important.
Why is my blended margin lower than my product margins?
Because your best-selling products are probably your lower-margin ones. High-volume, low-margin items dominate the weighting, which pulls the blend below the headline figures on your premium lines.
How do I improve blended margin?
Shift the mix rather than the prices. Promoting high-margin lines, bundling them with popular low-margin ones, or discontinuing the worst offenders often moves the blend faster than a general price rise.
Should loss leaders be in the blend?
Yes — the blend should reflect reality. Excluding inconvenient products produces a number that flatters the business and guides nothing. If a loss leader works, it shows up as higher volume on the products it pulls through.