Blended margin
Your overall gross margin across all customers combined.
Total revenue − total LLM cost, divided by total revenue. It's useful at a glance but dangerous alone: a strong blended margin can hide a tail of unprofitable customers dragging you down.
Why it matters
It's the headline number dashboards love, which is exactly why it's risky: a healthy blended margin can mask a growing tail of unprofitable power users until it becomes a real problem.
Example
100 customers at $49 ($4,900 revenue) costing $1,800 in total LLM spend = 63% blended margin — even if ten of those customers are each individually losing you money.
Calculate it with the free margin calculator →
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