Customer Concentration Analyser and Calculator

FreeAbout three minutesPeople and customers
What it does

Works out how much of your revenue rests on your largest one, three and five customers, and what that level of reliance means in practice.

How it helps

Concentration quietly shapes your pricing power, your risk and your business valuation. Seeing it clearly tells you whether you are comfortably spread or leaning too hard on a few accounts, and how a lender or buyer would read it.

How this benchmark is calculated

This benchmark is indicative only and reflects ProfitPulse's internal commercial ranges rather than an external survey. Read it as a practical guide, not a formal industry survey and not financial advice. It is tuned to your broad industry, your scale and your commercial complexity rather than applied flat.

In about three minutes, free, you will see their top one, top three and top five customer revenue shares, banded against their industry, and what that level of reliance means in practice.

Customer Concentration Analyser

Answer a few quick questions to see where you stand.

How the concentration figure is calculated

The formula

Top three share = revenue from your three largest customers divided by total revenue, times 100.

Worked example

A business with 2,000,000 dollars revenue whose top three customers bring in 900,000 dollars has a top three share of 45 per cent. The tool reads that against a sensible range for its industry.

How to read your result

Well spread means no single customer sets your terms. Worth a closer look means a few accounts carry more than is comfortable. Significant opportunity means real leverage sits with very few customers, which deliberate diversification can move.

What each figure means

  • Revenue for the last 12 months: Your total sales for the period, before any costs are taken out.

Common questions

Why do the top three customers matter most?

It is the figure a lender or buyer looks at first, because it shows how exposed your revenue is if one relationship ends.

Is concentration always a problem?

Not always, but it trims pricing power and valuation, so it is worth managing deliberately as you grow.

What share is considered safe?

It varies by industry. The tool bands your result against a sensible range for your sector rather than one number.

How ProfitPulse can help

If too much rests on a few accounts, our exit readiness work maps account level profit and builds the diversification a buyer or lender wants to see.