TAM SAM SOM Calculator
Estimate your Total Addressable Market, Serviceable Addressable Market, and Serviceable Obtainable Market. Essential for investor decks and product strategy.
What Are TAM, SAM, and SOM?
Top-Down: Start with Industry Data
Use analyst reports, Gartner/IDC data, or industry estimates for the total market.
Your Market Sizing
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How the TAM SAM SOM calculator works
It sizes your market three ways: the total opportunity (TAM), the slice you can realistically reach (SAM), and the slice you can realistically win in the near term (SOM).
The formula: Top-down starts from an industry revenue estimate and narrows it: SAM = TAM x SAM%, SOM = SAM x SOM%. Bottom-up starts from your own unit economics: TAM = Total Potential Customers x Average Revenue per Customer, then SAM = TAM x Reachable%, and SOM = SAM x Capturable%.
Worked example: Bottom-up, with 50,000 potential customers at $1,200 average annual revenue, TAM = 50,000 x $1,200 = $60M. If your product and go-to-market can reach 30% of that market, SAM = $60M x 30% = $18M. If you can realistically capture 10% of SAM in the next 2-3 years, SOM = $18M x 10% = $1.8M.
When to use it: Use top-down for investor decks when analyst data exists for your category; use bottom-up when you are pre-revenue and only have customer-level assumptions. Read the TAM SAM SOM glossary entry and the product-market fit guide to connect market sizing to your go-to-market strategy.