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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?

TAM
Total Addressable Market
The entire revenue opportunity if you had 100% market share
SAM
Serviceable Addressable Market
The portion of TAM you can reach with your product and go-to-market
SOM
Serviceable Obtainable Market
The realistic share of SAM you can capture in the near term

Top-Down: Start with Industry Data

Use analyst reports, Gartner/IDC data, or industry estimates for the total market.

Annual revenue of the entire market (e.g., $10B for project management software)
What portion of the total market fits your product's geography, segment, and capabilities?
Realistically, what market share can you win in 2-3 years?

Your Market Sizing

TAM
$10.0B
Total Addressable Market
SAM
$2.0B
Serviceable Addressable Market
SOM
$100.0M
Serviceable Obtainable Market
TAM: $10.0B
SAM: $2.0B
SOM: $100.0M

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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.