How to use the revenue concentration risk calculator
Split revenue by the channels it arrives through, such as your own store, marketplaces, wholesale and export, then enter the amount for each. The calculator scores how evenly that revenue is spread. Splitting by product line or region instead works the same way.
The score is the Herfindahl-Hirschman Index (HHI). Each source's share is expressed as a percentage, squared, and the squares are added together, so a single source holding everything gives 10,000 while an even spread pushes the number down. The effective number of revenue sources is 10,000 divided by the HHI, which tells you how many sources you actually depend on. Six channels with an effective count of 2.1 means you are leaning on roughly two of them.
Both threshold fields are editable. The 1,500 and 2,500 points shown as guidance are the levels commonly quoted in antitrust market concentration reviews, and that index was built to describe market share rather than one company's revenue mix, so weigh your industry before applying them literally.
If you want to know what share your largest individual accounts hold instead, use the customer revenue concentration calculator. This page scores the spread across grouped revenue sources, not customer by customer.
Frequently asked questions
There is no fixed answer. The 1,500 and 2,500 defaults are simply the figures quoted in antitrust market concentration reviews, so a business built on long contracts with low churn can reasonably set higher thresholds, while one living on short-term orders should set lower ones.
The more finely you slice, the lower the HHI will look. Split at the level you would actually have to respond to if one of them stopped, such as a single platform account or a major channel, and the result stays meaningful.