{
  "slug": "client-concentration-risk",
  "title": "Client Concentration Risk Calculator",
  "heading": "Client Concentration Risk Calculator",
  "category": "other",
  "url": "https://www.revenuelab.fyi/toolbox/client-concentration-risk",
  "summary": "How exposed you are if your biggest client leaves.",
  "description": "One client at 40% of revenue is a business risk, not a win. This scores concentration and shows the revenue and runway hit if the top account walks.",
  "formula": "Concentration = top client revenue ÷ total revenue.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=client-concentration-risk",
  "inputs": [
    {
      "id": "revenue",
      "label": "Annual revenue",
      "kind": "number",
      "hint": null,
      "default": 400000,
      "unit": "$",
      "min": null,
      "max": null
    },
    {
      "id": "top",
      "label": "Largest client revenue",
      "kind": "number",
      "hint": null,
      "default": 150000,
      "unit": "$",
      "min": null,
      "max": null
    },
    {
      "id": "top3",
      "label": "Top 3 clients revenue",
      "kind": "number",
      "hint": null,
      "default": 280000,
      "unit": "$",
      "min": null,
      "max": null
    },
    {
      "id": "costs",
      "label": "Annual fixed costs",
      "kind": "number",
      "hint": null,
      "default": 220000,
      "unit": "$",
      "min": null,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "share",
      "label": "Top client share",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "share3",
      "label": "Top 3 share",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "after",
      "label": "Revenue if top client leaves",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "margin",
      "label": "Profit after that loss",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual revenue: 400000 $",
      "Largest client revenue: 150000 $",
      "Top 3 clients revenue: 280000 $",
      "Annual fixed costs: 220000 $"
    ],
    "outputs": [
      "Top client share: 37.5%",
      "Top 3 share: 70.0%",
      "Revenue if top client leaves: $250,000",
      "Profit after that loss: $30,000"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual revenue ($).",
      "Enter largest client revenue ($).",
      "Enter top 3 clients revenue ($).",
      "Enter annual fixed costs ($).",
      "Read your top client share on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "revenue": 240000,
        "top": 90000,
        "top3": 170000,
        "costs": 130000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "revenue": 400000,
        "top": 150000,
        "top3": 280000,
        "costs": 220000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "revenue": 640000,
        "top": 240000,
        "top3": 450000,
        "costs": 350000
      }
    }
  ],
  "limitations": [
    "Estimates assume standard, average conditions — local rules, pricing, and materials vary.",
    "Results are rounded for readability; add a buffer before ordering, booking, or committing.",
    "Double-check anything with a real cost attached against a local quote."
  ],
  "faq": [
    {
      "q": "How does the client concentration risk calculator work?",
      "a": "One client at 40% of revenue is a business risk, not a win. This scores concentration and shows the revenue and runway hit if the top account walks. The underlying maths is: Concentration = top client revenue ÷ total revenue."
    },
    {
      "q": "What do I need to enter?",
      "a": "4 values: annual revenue, largest client revenue, top 3 clients revenue, and annual fixed costs. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the top client share result mean?",
      "a": "It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Estimates assume standard, average conditions — local rules, pricing, and materials vary."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone doing everyday planning maths — a quick estimate that would otherwise need four browser tabs and a calculator app."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/freelance-emergency-fund",
    "https://www.revenuelab.fyi/toolbox/cash-conversion-days"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Client Concentration Risk Calculator (https://www.revenuelab.fyi/toolbox/client-concentration-risk)"
}