TAM / SAM / SOM Calculator
Estimate your total, serviceable, and obtainable market from customer volume, annual revenue per customer, and realistic market filters.
View all free toolsMarket assumptions
Use one customer definition and one annual pricing basis throughout.
All customers in the broad market before product or geography filters.
Expected annual contract value or yearly customer spend.
The share your current product, geography, and channels can serve.
The realistic share of SAM you can capture in your chosen time horizon.
TAM
$120.00M
Total annual market demand before serviceability or capture constraints.
SAM
$42.00M
Annual revenue opportunity within the segment you can serve.
SOM
$2.10M
Realistic annual revenue opportunity at your assumed share of SAM.
Market size visualization
Bubble area is proportional to annual revenue opportunity.
100% of TAM
35.0% of TAM
1.8% of TAM
Customer view
Serviceable customers
35,000
Obtainable customers
1,750
How to calculate TAM, SAM, and SOM
A credible market size starts with explicit operating assumptions. Keep the customer unit consistent, state the time horizon for SOM, and document the evidence behind every percentage.
TAM
Potential customers × annual revenue per customer
SAM
TAM × serviceable market percentage
SOM
SAM × obtainable market percentage
Build a defensible estimate
Define the customer
Avoid mixing companies, locations, seats, and individual users in the same calculation.
Use annual pricing
Normalize subscriptions, transactions, and contracts to one annual revenue-per-customer figure.
Filter the market
Reduce TAM for product fit, geography, regulation, price point, and reachable distribution.
Ground SOM in capacity
Tie capture to leads, conversion, sales headcount, onboarding capacity, and a clear time horizon.
Turn SOM into a forecast
Market size is an opportunity, not a revenue forecast. Translate your SOM into customer acquisition, pricing, hiring, and cash assumptions.
Explore the Startup Financial ModelFrequently asked
TAM is all annual demand if you served the entire market. SAM narrows TAM to the customers your product and geography can serve. SOM is the realistic share of SAM you can capture within a defined period.
Use both. Customer count makes the assumptions auditable, while annual revenue per customer converts the opportunity into dollars. Cross-check the result against credible market reports or competitor revenue when possible.
Exclude customers outside your launch geographies, price point, product capabilities, regulations, and distribution reach. The remaining share of TAM is your serviceable market.
SOM should reflect sales capacity, competition, conversion rates, budget, and the time horizon. It is usually much smaller than SAM. Build it from an operating forecast rather than choosing an aspirational market share.
This is a bottom-up calculation: potential customers multiplied by annual revenue per customer. Bottom-up estimates are often more decision-useful because each assumption can be tested.
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