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TAM SAM SOM Calculator

Enter total market, serviceable share, and obtainable share. Get TAM, SAM, and SOM in dollars.

Inputs
$
%
%
Formula · SAM = TAM × serviceable% · SOM = SAM × obtainable%

Result

Fill the inputs to see your result.

What are TAM, SAM, and SOM?

TAM is the total addressable market for the category. SAM is the serviceable share that fits your model (geo, segment, channel). SOM is the obtainable share you can realistically win in the planning window.

The formulas.

SAM = TAM × serviceable share %. SOM = SAM × obtainable share %. The two shares are independent: SAM filters TAM, SOM filters SAM.

A worked example.

TAM of 10 billion, 20% serviceable, 3% obtainable. SAM = 2 billion. SOM = 60 million.

Top-down vs bottom-up.

Top-down uses analyst market sizes. Bottom-up multiplies target accounts by ACV. Investors prefer bottom-up because it is grounded in your actual ICP.

Common mistakes.

Claiming 10%+ of a giant SAM in year one. Confusing TAM with SOM in the pitch. Using a market figure that includes segments your product cannot serve.

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FAQ

What do TAM, SAM, and SOM mean?
TAM is the total addressable market. SAM is the serviceable share you could reach with your model. SOM is the obtainable share you can realistically win in a near-term window.
How do you calculate TAM?
Top-down: industry size from analyst data. Bottom-up: number of target accounts × annual contract value. Bottom-up is more defensible for a pitch.
What is a realistic SOM?
1% to 5% of SAM in the first few years is typical. Anything claiming 10%+ in year one needs evidence.
Why do investors care?
TAM tells them the ceiling. SAM tells them the model. SOM tells them whether the plan is grounded.
Should I use top-down or bottom-up?
Both. Top-down for the ceiling, bottom-up for credibility. If they disagree by an order of magnitude, the model needs work.

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