This average gross margin calculator will help you to estimate the weighted average gross margin for a business.
Normally a business will have a number of product lines and know the gross margin on each. To calculate the average gross margin for the business it is necessary to weight each product margin by its corresponding revenue.
The Excel sheet, available for download below, helps a business calculate the weighted average gross margin by entering gross margins and revenue for up to ten product lines.
Our tutorial on gross margins gives full details about how to calculate the gross margin for a business.
The Excel file available for download below, will help you to calculate the weighted average gross margin for your business.
Average Gross Margin Calculator Download
The average gross margin calculator is available for download in Excel format by following the link below.
Users use this accounting template at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an accounting format that you might use. It is purely illustrative. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the template, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.