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Customer Concentration Calculator: How Reliant Are You on Your Top Customers?

Enter revenue for your top customers to get an HHI concentration score plus top-1 and top-3 share, so you can see how exposed your business is to any single account.

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Enter annual revenue for your five biggest customers, plus everyone else combined. Leave any field blank if it does not apply.

Concentration score (HHI)
2,778

A score above 2,500 is generally read as highly concentrated. Your top customer alone makes up 42.0% of tracked revenue.

Total revenue entered
$100,000
Top 1 customer share
42.0%
Top 3 customers share
82.0%

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What customer concentration measures

Customer concentration is how much of your revenue depends on a small number of accounts. A business with 200 customers each worth roughly the same amount can lose one and barely notice. A business where one customer accounts for 40% of revenue is in a very different position: that single relationship ending, or even just renegotiating harder, can reshape the whole year. This calculator turns a list of customer revenue figures into two things: a concentration score called the Herfindahl-Hirschman Index (HHI), and simple top-1 and top-3 share percentages.

How the HHI score works

The HHI is calculated by squaring each customer's percentage share of total revenue and adding the squares together. Squaring matters because it punishes big shares far more than small ones: a single customer at 50% contributes 2,500 points to the score on its own, while ten customers evenly split at 10% each contribute only 1,000 points combined, even though both scenarios total 100% of revenue. This scoring convention is borrowed from antitrust market analysis, where regulators use the same bands to judge how concentrated an industry is: under 1,500 is considered unconcentrated, 1,500 to 2,500 is moderate, and above 2,500 is considered highly concentrated. Applied to a single company's customer base instead of a whole market, it works as a quick, comparable diversification score you can track over time.

What to do with a high score

A high concentration score is not automatically a crisis, especially for a young company still landing its first few accounts. But it is worth treating as a flag: lenders and investors often look harder at any single customer worth more than 10% to 15% of revenue, and a renewal conversation with that account carries outsized weight. If your score is high, the practical response is usually to keep serving the big accounts well while deliberately investing in new customer acquisition, so growth in the smaller accounts dilutes the concentration over time rather than trying to shrink the big relationships on purpose.

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FAQ

Customer Concentration Calculator: questions, answered

What is customer concentration risk?
It is the risk that comes from too much of your revenue depending on too few customers. If your biggest account leaves, gets acquired, or simply renegotiates its contract, a highly concentrated business feels that shock far more than one with revenue spread across many accounts of similar size.
What is the HHI and how do I read the score?
The Herfindahl-Hirschman Index is the sum of each customer's squared percentage share of total revenue, producing a score from near 0 up to 10,000. Using the same bands regulators use for market concentration, a score under 1,500 reads as unconcentrated, 1,500 to 2,500 reads as moderate, and above 2,500 reads as highly concentrated.
Why does customer concentration matter for a small business or SaaS company?
Because early-stage companies often land a handful of large logos before their customer base broadens out, which is normal, but it also means one lost contract can swing revenue by double digits. Lenders, acquirers and investors routinely ask about it during diligence, since a company overly dependent on one or two accounts is priced and financed differently than one with a broad base.
Is grouping 'other customers' into one bucket accurate?
It is a simplification, and a conservative one. Treating everyone outside your top five as a single combined figure slightly understates how diversified your smaller customer base actually is, since in reality that revenue is spread across many separate accounts rather than one. The top-1 and top-3 figures, which only use your named customers, are unaffected by this simplification.
What's considered a safe level of customer concentration?
There's no fixed rule, but a common practical benchmark is that many lenders and advisors get uneasy once a single customer exceeds roughly 10% to 15% of total revenue, and more so past 25%. The right threshold depends on your industry, contract length and how easily that customer could be replaced if the relationship ended.

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