Product Mix Margin Calculator
A busy store is not always a profitable one. Enter each category margin % and revenue to see your true blended margin and which lines lift or drag it.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Product Categories
Enter each category's gross margin % and monthly revenue.
Blended Product Margin
Margin Contribution by Category
High-margin lines with a small share are your upside — grow them. Low-margin lines with a large share are dragging the blend.
* Blended margin = weighted average of category margins by revenue. From your inputs. Educational reference, not advice.
What This Calculator Tells You
True Blended Margin
Revenue-weighted average across all categories — not a simple average.
Contribution by Line
See which categories earn the most gross margin dollars.
Mix Diagnosis
Spot low-margin lines with a large share that drag the blend.
Actionable
Grow high-margin share; trim low-margin volume.
Authoritative References
- Category margin ranges by business type (retrieved 2026-08-13), documented in our type-specific opening and diagnosis guides.
- U.S. SBA — Assess Your Business — performance review frameworks.
Estimates only. Blended margin from your inputs. Not financial advice.
Product Mix FAQs
The revenue-weighted average gross margin across all your categories. A store can sell high-margin custom cakes but still blend low if bread (low margin) is most of the volume. This calculator shows the true blend.
Any mixed-assortment business: bakeries (cakes vs bread), cafes (food vs drinks), bars (cocktails vs beer), and retailers (high-margin vs low-margin categories). It pairs with the benchmark scorecard.
Grow the share of high-margin lines (custom orders, specialty items, beverages) and trim the volume of low-margin staples — without cutting the traffic they bring.