Market Concentration and HHI Calculator Excel Template
Market Concentration and HHI Calculator Excel Template
Interactive Excel Financial Model
Download, customize, and integrate into your own analysis
What's Included
- Interactive financial model with live Excel formulas
- All formulas visible and fully editable
- Professional formatting with color-coded inputs & outputs
- Formula reference sheet with variable definitions
- Step-by-step instructions sheet
- Compatible with Microsoft Excel 2016 and later
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Price range: $0.00 through $20.00
Calculate HHI, CR4, CR8, and effective firms with live Excel formulas. Uses 2023 DOJ/FTC Merger Guidelines thresholds.
Online Calculator vs Excel Template
| Feature | Online | Excel |
|---|---|---|
| Instant use — no download | ✓ | — |
| Works offline | — | ✓ |
| Customize formulas & layout | — | ✓ |
| Save & share with colleagues | — | ✓ |
| Integrate into your own models | — | ✓ |
| Print-ready formatting | — | ✓ |
About This Template
Analyze market concentration with this professional HHI Calculator Excel template. Perfect for antitrust analysts, strategy consultants, investment professionals, and economics students who need to quickly assess competitive dynamics in any industry.
What You Can Calculate
This template computes four key concentration metrics from your market share data:
- Herfindahl-Hirschman Index (HHI) - The standard measure used by the DOJ/FTC, ranging from 0 (perfect competition) to 10,000 (monopoly)
- CR4 and CR8 Concentration Ratios - Combined market shares of the top 4 and 8 firms
- Effective Number of Firms - How many equal-sized firms would produce the same HHI
- Concentration Classification - Automatic categorization using 2023 DOJ/FTC Merger Guidelines thresholds
Required Inputs
Simply enter market share percentages for up to 10 firms (expandable). Leave unused rows at 0%. The template automatically identifies incomplete markets when shares don't sum to 100%.
Methodology
HHI is calculated as the sum of squared market shares (expressed as percentages): HHI = s₁² + s₂² + ... + sₙ². The squaring gives more weight to larger firms, capturing both the number of competitors and inequality in their sizes. Under the 2023 DOJ/FTC Merger Guidelines, markets with HHI below 1,000 are considered unconcentrated, 1,000-1,800 moderately concentrated, and above 1,800 highly concentrated.
Assumptions & Limitations
- Market shares measured as percentages (0-100%)
- 10 firm rows by default (expandable by adding rows)
- Concentration classification requires shares to sum to 100%
- HHI is a structural measure - does not capture barriers to entry or pricing behavior
Frequently Asked Questions
Ten rows cover the majority of industry analyses. The online calculator supports up to 20 firms for edge cases. To add more firms in Excel: insert new rows below Firm 10 in the Calculator sheet, copy the input formatting, and update the formula ranges to include the new cells (e.g., change B6:B15 to B6:B25).
The calculator still computes HHI, CR4, CR8, and effective firms, but displays a warning. For meaningful concentration analysis, shares should represent all market participants and sum to 100%.
Duplicate the Calculator sheet (right-click tab, Move or Copy, check Create a copy). Enter different market data in each sheet. Compare HHI and effective firm counts side by side.
A fully interactive financial model with live Excel formulas, an Instructions sheet with usage guide, and a Formula Reference sheet with variable definitions and model assumptions. All formulas are visible and editable.
Microsoft Excel 2016 or later. The template uses standard Excel formulas only — no macros, VBA, or add-ins required.
Yes. All cells are fully editable. You can modify any formula, add your own calculations, change formatting, or integrate the model into your existing spreadsheets.
The online calculator runs in your browser for quick calculations. This Excel template gives you a portable, offline financial model you can customize, save, share with colleagues, and integrate into your own analysis.
This template is provided for educational and personal use. You may use it in your own professional analysis and presentations. Redistribution or resale of the template itself is not permitted.
You can re-download the latest version from your account or by requesting a new download link. Free downloads are limited to 5 per email address per month.
