Herfindahl-Hirschman Index (HHI) Calculator

Herfindahl-Hirschman Index (HHI) Calculator

Herfindahl-Hirschman Index (HHI) Calculator

Market Participants

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HHI Interpretation Guide

  • HHI < 1500: Unconcentrated Market (Competitive)
  • 1500 ≤ HHI ≤ 2500: Moderately Concentrated Market
  • HHI > 2500: Highly Concentrated Market

The HHI is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers. Market shares are expressed as percentages (e.g., 30 for 30%).