Revenue Concentration Index Calculator

See where revenue clusters across your pipeline. Measure risk, compare scenarios, and prioritize diversification actions. Make smarter coverage decisions with fast concentration insights.

Inputs

Add accounts or deals

Enter revenue or value per item. Optionally add probability to weight pipeline.
Tip: Use the bulk box for quick paste.
Used for display only.
Shows share held by the largest N items.
If probability is blank, 100% is assumed.

Item 1
Item 2
Item 3
Item 4

If items above are empty, bulk paste will be used.
Enter at least two items. Keep amounts non‑negative. With weighting, probability blanks assume 100%.
Revenue concentration risk
Higher concentration means fewer accounts drive a larger share of value. Track HHI, normalized HHI, effective accounts, and top‑share ratios for diversification planning.
Example

Sample input table

Use these values to test the tool quickly.
Account / Deal Amount Probability
Alpha Corp42,00090%
Beta Industries28,00065%
Gamma Retail15,00040%
Delta Services9,00055%
Bulk paste format: Name,Amount,Probability.
Method

Formula used

1) Effective value
If weighting is enabled:
Effectiveᵢ = Amountᵢ × (Probabilityᵢ / 100)
If probability is blank, it is treated as 100%.
2) Share
Shareᵢ = Effectiveᵢ / Σ Effective
Shares sum to 1 across all items.
3) HHI concentration index
HHI = Σ (Shareᵢ)²
HHI ranges from 1/N (equal split) to 1 (single account). The tool also shows HHI × 100 for a 0–100 scale.
4) Normalized HHI
Adjusts for the number of items:
nHHI = (HHI − 1/N) / (1 − 1/N)
This yields a 0–1 score that is comparable across list sizes.
5) Effective number of accounts
Diversification equivalent:
EffectiveAccounts = 1 / HHI
Higher values indicate broader value distribution.
6) Gini coefficient
Measures inequality (0–1). Higher means more imbalance. The tool computes standard Gini from sorted effective values.
Guide

How to use this calculator

  1. Add items: Enter each account or deal, plus amount. Add probability if you want weighted pipeline value.
  2. Choose weighting: Enable weighting to multiply amount by probability. This helps compare forecast risk scenarios.
  3. Set Top‑N: Pick N to see how much value is held by the largest N items.
  4. Calculate: Results appear above the form. Review HHI, normalized HHI, effective accounts, and ratios.
  5. Export: Download CSV for analysis or PDF for sharing in pipeline reviews.
Insights

Professional notes

Why concentration matters in pipeline reviews

Revenue concentration reveals how dependent forecast outcomes are on a small set of accounts. When the top 3 deals hold 60% of weighted value, a single slip can distort attainment and capacity plans. This calculator converts your list into shares, ranks, and summary ratios for consistent quarterly comparisons.

Interpreting HHI and normalized HHI

HHI is the sum of squared shares and ranges from 1/N to 1. On a 0–100 scale, values under 15 often indicate broad distribution, 15–25 suggests moderate reliance, and above 25 signals high reliance. Normalized HHI rescales results to 0–1 so teams can compare a 12‑deal pipeline to a 40‑deal pipeline without size bias.

Using probability-weighted value for forecast risk

Weighting each amount by close probability translates pipeline into expected value. This highlights hidden risk: two large low‑probability opportunities can inflate unweighted totals while adding limited expected revenue. Run both views to isolate whether concentration is driven by deal size, low confidence, or both.

Top‑N share, CR3, and CR5 as executive signals

Top‑N share answers a practical question: what portion of value sits in the largest N items. CR3 and CR5 summarize reliance on the biggest three or five accounts, matching common board and leadership reporting. If CR5 rises quarter over quarter while total value stays flat, diversification is weakening even before outcomes change.

Effective accounts and Gini to track diversification progress

Effective accounts equals 1/HHI and estimates how many equal‑sized accounts would produce the same distribution. A pipeline with 20 deals may behave like only 6 effective accounts when value is uneven. Gini complements HHI by emphasizing inequality across the full list, helping explain whether concentration is extreme at the top or widespread.

Actionable next steps for CRM and coverage planning

Use ranked output to design coverage: add mid‑market programs, expand partner sourcing, or rebalance rep territories. Set guardrails, such as keeping top‑N share below 35% for new business or limiting any single account to 20% of expected value. Recalculate after pipeline creation and after stage changes to confirm the risk profile is improving. Document the chosen thresholds in your playbook and review them monthly, so improvements are measurable, repeatable, and aligned with revenue targets.

FAQs

Questions and answers

What is the Revenue Concentration Index here?

It summarizes how much revenue or pipeline value is concentrated in a few accounts using HHI, normalized HHI, top‑share ratios, and inequality measures.

Should I use weighted value or entered value?

Use entered value to understand exposure by deal size. Use weighted value to understand expected‑revenue risk. Comparing both shows whether concentration is driven by size, probability, or both.

How many items do I need for a reliable view?

At least two items are required, but 10+ deals gives a more stable picture. Very small lists can swing sharply when one deal changes stage or amount.

What HHI thresholds should I consider?

On the 0–100 scale, under 15 is often low concentration, 15–25 moderate, and above 25 high. Treat these as guidelines and validate against your historical volatility.

Why does the tool show “Effective accounts”?

It converts concentration into an intuitive equivalent count: how many equal‑sized accounts would create the same distribution. Higher effective accounts indicates better diversification.

Can I export results for leadership reporting?

Yes. Download CSV for analysis in spreadsheets and download PDF for sharing in pipeline reviews. Exports include the ranked table and key summary metrics.

Related Calculators

high value customerideal customer profilecustomer engagement scoresegment growth rateaccount scoring modelcustomer value scorecustomer loyalty scorecustomer opportunity index

Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.