Deal Size Distribution Calculator
Average ACV hides the truth. Most B2B sales pipelines are skewed by a few large deals. Median, percentile, and concentration analysis reveal whether revenue is broad-based or dangerously concentrated in a few accounts.
Why Average ACV Is Misleading
A pipeline with one $1M deal and nine $50K deals has average ACV of $145K. The median is $50K. Average overstates by 3x. Reporting average ACV to investors without the median misrepresents the true book health.
Concentration Risk Threshold
Healthy B2B SaaS: top 10% of customers contribute under 30% of revenue. Above 40% concentration creates churn risk. Above 60% means one major customer loss could trigger covenant breach. PE/VC investors discount valuation 20-30% on high-concentration revenue.
How To Reduce Concentration Risk
Three approaches: prioritize SMB volume to broaden the base (lower ACV but more customers), build expansion playbooks within mid-tier accounts to grow without depending on whales, and contractually bind top customers with multi-year terms + minimum commitments.
Source: Bessemer State of the Cloud 2025, ChartMogul SaaS Retention Report 2025. Last updated: May 2026.