Revenue Concentration Risk
How much of your MRR sits with a handful of accounts.
Put this metric to work: explore FlowMRR's Stripe MRR analytics to track revenue movements, retention and forecasts from your own account.
A measure of how evenly your MRR is spread across customers. Gini is 0 for equal revenue and approaches 1 for extreme concentration. Two businesses at $50,000 MRR can have very different risk profiles: one where the top customer is 2% of revenue, another where it is 40%. Concentration turns a single cancellation into a company-threatening event.
Formula
Gini coefficient + largest customer's MRR share + top 5 customers' MRR shareWorked example
$80,000 MRR, top customer pays $18,000/mo (22.5% of MRR), top 5 customers pay $38,000/mo (47.5%) → high concentration. Losing that one account instantly drops MRR by nearly a quarter.
Illustrative comparisons
Top-5 share of MRRThese unsourced ranges are illustrative scenarios, not measured industry benchmarks, percentiles or recommended targets. Their qualitative labels are editorial interpretations. Compare your own cohorts using the same segment, period, currency and measurement basis.
Why it matters
Concentration is invisible in a headline MRR number — a business can be growing nicely while quietly becoming a two-customer company. Investors run this exact stress test in diligence ("what happens to ARR if your top account leaves?"), and it should change how you negotiate contracts, set payment terms, and prioritise support for those accounts.
Common mistakes
- Only looking at logo count, not revenue share — 5% of customers can easily be 40% of MRR.
- Never re-running the check after a big new enterprise deal, which is exactly when concentration spikes.
- Treating concentration as purely bad — a few large, sticky accounts can also mean real enterprise traction. The point is to know the number, not to always minimise it.