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TAM SAM SOM Calculator

Potential customers, annual value per customer, and the percentages you can serve and win. The tool reports TAM, SAM, and SOM in dollars and customers.

Free toolsGrowth & StrategyReviewed September 2026

Customers and value

Every organization or person who could plausibly buy this category of product.

Average annual revenue per customer, at your price.

SharesHow much of each market you can serve, then win.

The share you could realistically serve given geography, segment, and product fit.

The share you can realistically win in three to five years.

TAM

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Total addressable market, annual revenue

SAM
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Serviceable addressable market
SOM
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Serviceable obtainable market
TAM customers
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SAM customers
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SOM customers
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Revenue at 1% of SAM
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Sanity check

Runs entirely in your browser. Nothing you enter is stored or sent anywhere. Last reviewed September 2026.

Nested markets, to scale

Why bottom-up sizing wins the room

A top-down market size is a multiplication of guesses, and the audience knows it. Population times price times two percentages produces a large number quickly, which is why it appears in so many pitch decks and why so few people believe it. Each factor is plausible on its own, but a 20% error in each compounds into a figure that could be off by half or double. Use this tool to frame the opportunity, then earn credibility by building the same number from the bottom up.

Bottom-up sizing starts from things you can count: named accounts in a target list, monthly leads by segment, realistic deal sizes, observed win rates, and how many reps or campaigns you can fund. It usually produces a smaller number than the top-down figure. That is fine. A defensible $40 million is worth more in a board meeting than an unexplained $2 billion, because every input can be challenged and survive.

Boards and investors read SOM, not TAM. TAM tells them whether the category is big enough to matter; SOM tells them whether your plan is achievable and what it implies for revenue in three to five years. They will compare your SOM to the revenue in your operating plan and to the market share incumbents actually hold. If SOM implies you will take a share no entrant in the category has ever won, the model fails regardless of how large the TAM looks. The 1%-of-SAM figure is here for the same reason: if it already exceeds your revenue plan, your ambition is not the constraint, execution is.

Formulas

TAM
= Potential customers × Annual value per customer
SAM
= TAM × Serviceable share
SOM
= SAM × Obtainable share
SAM customers
= Potential customers × Serviceable share
SOM customers
= SAM customers × Obtainable share
Revenue at 1% of SAM
= SAM × 0.01

Frequently asked questions

What is the difference between TAM, SAM, and SOM?

TAM (total addressable market) is the annual revenue if every potential customer bought from you. SAM (serviceable addressable market) is the part of TAM your product, geography, and go-to-market can actually reach today. SOM (serviceable obtainable market) is the slice of SAM you can realistically win over the next few years given competition, sales capacity, and budget. TAM describes the opportunity, SAM describes the fit, and SOM describes the plan.

Should I size the market top-down or bottom-up?

Do both and reconcile them. Top-down (this tool) starts with a population and multiplies by a price and share assumptions; it is fast but every step is an estimate. Bottom-up counts the customers you can actually name or reach, multiplies by realistic deal sizes and win rates, and adds up from there. Investors and boards trust bottom-up numbers more because each input can be checked. When the two approaches disagree by more than a factor of two, one of your assumptions is wrong, and finding out which is the useful work.

What percentages should I use for serviceable and obtainable share?

There is no standard number. The defaults here (30% serviceable, 10% obtainable) are placeholders, not benchmarks. Serviceable share should come from concrete filters: which regions you sell in, which segments the product fits, which languages and integrations you support. Obtainable share should be grounded in your sales capacity, current market share, and the shares incumbents have actually won in comparable categories. If you cannot explain why a percentage is what it is, a board will treat the whole model as a guess.

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