Why broken links matter
Internal broken links are the bigger SEO concern. They send users (and crawlers) to dead ends, waste your crawl budget on requests that return 404, and prevent link equity from flowing through your site's internal link graph. A site with hundreds of internal 404s effectively has hundreds of leaks in its authority distribution.
External broken links are smaller but still meaningful. They erode user trust (clicking a link and getting 'site not found' looks unprofessional), and they degrade your content's perceived freshness — Google notices when a site's references stop resolving.