HHI Portfolio Calculator

HHI quantifies portfolio concentration with single number.

Asset 1 %

Asset 2 %

Asset 3 %

Asset 4 %

Asset 5 %

Remaining portfolio %

Remaining asset count

HHI score

924.27

Interpretation

Diversified

Top 5 concentration

0.62%

How the math works

HHI = sum of each asset's squared %. Top 5 tracked individually; remaining averaged.

18² + 14² + 12² + 10² + 8² + 15 × (38/15)² = 324+196+144+100+64+96 = 924 HHI. Diversified.

How to Use

Enter top 5 asset percentages.
Read HHI score and interpretation.

Frequently Asked Questions

HHI mechanics?

Sum of squared market shares. 10 equal-weight assets = 100² × 10 ÷ 100² = 1000 HHI. Concentrated portfolio (one dominant) approaches 10000. Under 1500 = diversified; 1500-2500 = moderate; above 2500 = concentrated.

Real estate context?

Class A institutional portfolios: HHI 400-1500. Family office portfolios: 1500-4000. Single-asset syndication: 10000 by definition. Institutional LPs often require HHI commitment in fund agreements.

Use cases?

Fund sizing: HHI target drives deal pipeline need. Asset disposition: sell concentrated asset to reduce HHI. LP reporting: HHI shown in quarterly reports. Stress testing: how HHI changes under various asset loss scenarios.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.