Revenue Concentration Calculator

How to use this calculator

1. Enter Top-3 Customer MRR — the combined monthly recurring revenue from your three largest customers.
2. Enter Total MRR — the total monthly recurring revenue across all customers.
3. Click Calculate — see your concentration percentage, Revenue HHI proxy, and how your risk level compares to SaaS benchmarks.

Why revenue concentration matters in SaaS acquisitions

Revenue concentration is one of the fastest deal-killers in SaaS M&A. A business generating $5M ARR sounds healthy — but if 60% of that comes from three customers, the business is a single support-ticket-gone-wrong away from losing a third of its revenue. SaaS Capital research (2025) identifies concentration above 30% as elevated risk; above 50%, many acquirers discount the valuation by 30–50% or walk away entirely.

The Concentration Vulnerability Index in ChurnLens goes deeper than this calculator: it tracks concentration trends over time, identifies whether the top-3 share is rising or falling, and cross-references against logo retention to surface the real story behind the numbers.

Concentration benchmarks: what's safe?

Below 30% top-3 concentration: Safe zone. Revenue is distributed across a healthy, diversified customer base (SaaS Capital 2025).

30–50% top-3 concentration: Elevated risk. Warrants deeper review — check whether the dependency is growing or shrinking quarter-over-quarter.

Above 50% top-3 concentration: Critical risk. The business is dangerously dependent on a handful of accounts. Many experienced acquirers will either discount the valuation or pass entirely.