Customer Concentration Risk Calculator
Measure revenue concentration risk with HHI scoring. See which customers you depend on most and get diversification recommendations.
How Concentration Risk Is Measured
Enter Customer Revenue
Add each customer and their monthly revenue contribution.
Get HHI Score
The Herfindahl-Hirschman Index measures revenue distribution concentration.
Diversify Revenue
Get actionable recommendations to reduce dependency risk.
HHI Risk Levels
Low Risk
HHI below 1,500
Moderate Risk
HHI 1,500 - 2,500
High Risk
HHI 2,500 - 5,000
Critical Risk
HHI above 5,000
Who This Calculator Is For
B2B SaaS Founders
Understand revenue risk before enterprise customers churn or renegotiate contracts.
Agencies & Consultancies
Monitor client dependency and plan acquisition strategies to reduce concentration.
Investors & Advisors
Evaluate portfolio company risk profiles and identify concentration red flags.
Frequently Asked Questions
What is customer concentration risk?
Customer concentration risk is the danger that a large portion of your revenue depends on a small number of customers. If your top customer represents 40% of revenue and churns, you lose nearly half your business overnight. This is a critical metric for B2B companies. Monitor it alongside churn rate benchmarks for a complete risk picture.
What is the Herfindahl-Hirschman Index (HHI)?
The HHI is calculated by summing the squares of each customer's revenue share percentage. A company with 10 equal customers (10% each) has an HHI of 1,000 (10 x 10^2). A company where one customer is 50% has an HHI of at least 2,500. Lower HHI means better diversification.
What is a safe customer concentration level?
No single customer should represent more than 15-20% of total revenue. Your top 3 customers combined should ideally be under 40%. An HHI below 1,500 indicates healthy diversification. These thresholds matter for fundraising too as investors view concentration as a valuation risk.
How do I reduce customer concentration risk?
Focus on acquiring more small-to-mid-size customers rather than chasing only enterprise deals. Expand your product to serve a broader market. Build self-serve channels that drive volume. Also improve retention across your entire base with the strategies in our customer LTV calculator.
How does concentration risk affect fundraising?
Investors view high customer concentration as a significant risk factor. If one customer leaving could drop revenue by 20%+, your valuation will reflect that fragility. Many VCs and acquirers flag any business where a single customer exceeds 10-15% of revenue. Reducing concentration before fundraising can meaningfully improve your terms.
Monitor Customer Concentration in Real-Time
Get automated alerts when customer concentration exceeds safe thresholds across all your business entities.