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Primary formula: portfolio margin = total contribution รท total revenue

Educational only: Business decision support, not accounting, tax or legal advice.

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Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Owners checking whether a two-product portfolio supports a target weighted margin.

Outputs

Portfolio revenue, contribution, weighted margin and target-revenue gap.

Start here

Enter price, cost and expected units for each product before setting the portfolio margin target.

Use a different tool when: Do not use this to measure contribution; use Contribution Margin Planner for that decision. Use this tool to balance a product portfolio.

Price & margin

Multi-product Price Architecture: portfolio revenue

Portfolio revenue, contribution, weighted margin and target-revenue gap.

Amounts use the same currency as your inputs. No currency conversion is performed.

Multi-product Price Architecture

Check weighted portfolio margin and target-revenue gap.

Your numbers stay in this browser

currency units

Ex-tax selling price.

currency units

Variable unit cost.

Expected units.

currency units

Ex-tax selling price.

currency units

Variable unit cost.

Expected units.

%

Weighted contribution target.

Decision result

Every result is derived by the registered pricing engine.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Portfolio margin
47.4%
Revenue Ex Tax
38,000.00
Contribution Ex Tax
18,000.00
Target Revenue Ex Tax
33,333.33
Revenue Gap Ex Tax
-4,666.67

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Current scenario47.4%Baseline
Lower Target portfolio margin47.4%0%
Higher Target portfolio margin47.4%0%

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Portfolio margin

Portfolio Margintotal contribution รท total revenue47.37%
Result47.4%

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Multi-product Price Architecture Planner formulas โ†’
Inputs used by these formula steps
Portfolio MarginProduct APrice Ex Tax
100
Portfolio MarginProduct ACost Ex Tax
55
Portfolio MarginProduct AUnits
200
Portfolio MarginProduct BPrice Ex Tax
60
Portfolio MarginProduct BCost Ex Tax
30
Portfolio MarginProduct BUnits
300
Portfolio MarginTarget Portfolio Margin
0.4

Revenue Ex Tax

Revenue Ex Taxproduct A revenue + product B revenue38,000 , ex tax
Result38,000.00

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Multi-product Price Architecture Planner formulas โ†’
Inputs used by these formula steps
Revenue Ex TaxProduct APrice Ex Tax
100
Revenue Ex TaxProduct ACost Ex Tax
55
Revenue Ex TaxProduct AUnits
200
Revenue Ex TaxProduct BPrice Ex Tax
60
Revenue Ex TaxProduct BCost Ex Tax
30
Revenue Ex TaxProduct BUnits
300
Revenue Ex TaxTarget Portfolio Margin
0.4

Contribution Ex Tax

Contribution Ex Taxproduct A contribution + product B contribution18,000 , ex tax
Result18,000.00

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Multi-product Price Architecture Planner formulas โ†’
Inputs used by these formula steps
Contribution Ex TaxProduct APrice Ex Tax
100
Contribution Ex TaxProduct ACost Ex Tax
55
Contribution Ex TaxProduct AUnits
200
Contribution Ex TaxProduct BPrice Ex Tax
60
Contribution Ex TaxProduct BCost Ex Tax
30
Contribution Ex TaxProduct BUnits
300
Contribution Ex TaxTarget Portfolio Margin
0.4

Target Revenue Ex Tax

Target Revenue Ex Taxtotal portfolio cost รท (1 โˆ’ target portfolio margin)33,333.33 , ex tax
Result33,333.33

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Multi-product Price Architecture Planner formulas โ†’
Inputs used by these formula steps
Target Revenue Ex TaxProduct APrice Ex Tax
100
Target Revenue Ex TaxProduct ACost Ex Tax
55
Target Revenue Ex TaxProduct AUnits
200
Target Revenue Ex TaxProduct BPrice Ex Tax
60
Target Revenue Ex TaxProduct BCost Ex Tax
30
Target Revenue Ex TaxProduct BUnits
300
Target Revenue Ex TaxTarget Portfolio Margin
0.4

Revenue Gap Ex Tax

Revenue Gap Ex Taxtarget revenue โˆ’ current portfolio revenue-4,666.67 , ex tax
Result-4,666.67

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Multi-product Price Architecture Planner formulas โ†’
Inputs used by these formula steps
Revenue Gap Ex TaxProduct APrice Ex Tax
100
Revenue Gap Ex TaxProduct ACost Ex Tax
55
Revenue Gap Ex TaxProduct AUnits
200
Revenue Gap Ex TaxProduct BPrice Ex Tax
60
Revenue Gap Ex TaxProduct BCost Ex Tax
30
Revenue Gap Ex TaxProduct BUnits
300
Revenue Gap Ex TaxTarget Portfolio Margin
0.4

Inputs used

Product A price
100
Product A cost
55
Product A units
200
Product B price
60
Product B cost
30
Product B units
300
Target portfolio margin
0.4
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/multi-product-price-architecture/?sv=1&productACostExTax=55&productAPriceExTax=100&productAUnits=200&productBCostExTax=30&productBPriceExTax=60&productBUnits=300&targetPortfolioMargin=0.4

ParameterMeaningUnitAllowed valuesPresenceDefault
productACostExTaxVariable unit cost.currency units/product A unit, ex tax0 to 10000000Required55
productAPriceExTaxEx-tax selling price.currency units/product A unit, ex tax0 to 10000000Required100
productAUnitsExpected units.whole product A units/comparison period0 to 10000000Required200
productBCostExTaxVariable unit cost.currency units/product B unit, ex tax0 to 10000000Required30
productBPriceExTaxEx-tax selling price.currency units/product B unit, ex tax0 to 10000000Required60
productBUnitsExpected units.whole product B units/comparison period0 to 10000000Required300
targetPortfolioMarginWeighted contribution target.proportion of portfolio revenue retained as contribution0 to 0.99Required0.4

Multi-product Price Architecture: portfolio revenue

The weighted portfolio margin shows whether the expected product mix supports the target price architecture.

Formula summary

Primary formula
portfolio margin = total contribution รท total revenue

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Adjust the product whose price, cost or volume mix creates the clearest target-margin gap.

Stress-test the decision

Run a lower-volume case for the higher-margin product before changing list prices.

When this estimate can be misleading

  • Results depend on the accuracy and consistent basis of your inputs.
  • The planner does not predict demand, competitor behaviour or supplier terms.
  • Use the result as educational business decision support, not accounting, tax or legal advice.
  • The weighted portfolio margin shows whether the expected product mix supports the target price architecture.

Educational estimate, not advice. See all assumptions & limitations โ†’

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I balance a product portfolio?

Adjust the product whose price, cost or volume mix creates the clearest target-margin gap.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.