🏠 GEM Resource Hub · 📚 Library · 📘 About RocketLevel · 📘 Playbooks · 🗺️ What's Your Market Worth? · 📅 Book a Call

<aside> 🧮

Three ways to use this calculator

• On a computer: run it right below. Add a row per source, enter last year's dollars, and both readings update as you type.
• On a phone, or to keep your numbers: make your own copy in Google Sheets. The HHI score and your risk zone calculate automatically.
• No Google account? Download it for Excel and open it in Excel or any spreadsheet app. </aside>

https://gem-resource-hub-calculators.nyc3.cdn.digitaloceanspaces.com/hhi-concentration/index.html

See your concentration risk the way a buyer does.

A RocketLevel calculator for restoration owners, backed by decades of experience in the trade. About a 10-minute exercise you run on your own numbers.

Buyers, lenders, and risk managers put a number on concentration. One of the standard tools they reach for is the Herfindahl-Hirschman Index, or HHI. It turns your revenue mix into a single number that says how concentrated your book is. You can run it on your own business by hand in a few minutes.

<aside> 📐

Know what you are borrowing. The HHI was built by antitrust regulators to measure how concentrated a market is across competing firms, and its published thresholds were written for judging mergers. Pointing it at one contractor's customer book borrows it for a job it was never designed for, and it is still useful there. Run it for the picture it gives you, and read the bands below as a reference point rather than a ruling on your business.

</aside>

• 📑 Jump to a section

What this measures

Two things, side by side:

• The HHI score: a single number, from near 0 to 10,000, that summarizes how concentrated all of your revenue sources are together.
• Your single-largest-source share: the percent of revenue riding on your one biggest source, which is the number the Concentration Risk Playbook zones use.

Read together, they tell you both the overall picture and the single point of failure.

Inputs

List every meaningful revenue source and its dollar revenue for the year. A source can be a carrier, a third-party administrator (TPA) or program, a major referral partner, a single large commercial account, or a channel such as residential versus commercial. Use whatever split actually drives your risk.

• Each revenue source (name it).
• The dollar revenue from that source over the last 12 months.

The formula (in plain language)

1. Add up the dollar revenue from every source to get your total revenue.