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How to use
- Enter Client revenue.
- Enter Total revenue.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Client concentration = client revenue ÷ total revenue × 100
Example
Client revenue of 40,000 out of 120,000 total means 33.33% concentration and 80,000 from other clients.
Important notes
The ratio alone does not determine risk; contract length, client stability, replaceability and cash reserves also matter when assessing dependence.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Concentration | 40000 ÷ 120000 × 100 | 33.333333 % |
| Other revenue | 120000 − 40000 | 80,000 |
Frequently asked questions
Does high concentration mean the client is bad?
No. The client may be excellent; high concentration simply means a change in that relationship has a larger revenue impact.
Is the result a mandatory client price?
No. It is a planning result from your inputs; final pricing depends on scope, market, contract, taxes and risk.
Should I use monthly or annual figures?
Keep all inputs on the same period so annual income is not mixed with monthly hours or expenses.