Use the same reporting period. Revenue exposure does not directly measure profit or replacement probability.
Try this with your own numbersFormula and worked example
Revenue exposure = largest customer revenue / total revenue × 100
| Input | Example |
|---|---|
| Revenue from largest customer | 18,000 |
| Total period revenue | 60,000 |
| Calculated result | 30 % |
Choose reliable inputs
Connect teaching time, preparation, attendance and room capacity to each lesson or class. For this dance school calculation, use attendance records, teaching schedules and room costs and a consistent definition of one class place.
- Teaching time: include the portion belonging to this class place or reporting period, and record where the value came from.
- Rent: include the portion belonging to this class place or reporting period, and record where the value came from.
- Enrollment handling: include the portion belonging to this class place or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
How much revenue depends on my largest client?
Use the same reporting period. Revenue exposure does not directly measure profit or replacement probability.
What if this input changes?
If revenue from largest customer rises by 10%, this example changes by 3 %. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.