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Updated April 20, 2026 · Marketing & Growth · Educational use only ·

TAM SAM SOM Calculator

Market opportunity sizing.

Calculate TAM, SAM, and SOM for market sizing and investor pitches from total addressable market, serviceable available market, and target share.

What this tool does

This calculator breaks down market opportunity into three layers: TAM (the total market size across all possible customers), SAM (the slice of that market your business model can realistically address), and SOM (your realistic capture within SAM). Enter your TAM estimate in your currency, then specify SAM as a percentage of TAM and your obtainable market share as a percentage of SAM. The calculator multiplies these percentages down to show all three figures—useful for illustrating market opportunity in presentations or planning exercises. The result depends most heavily on your TAM starting point and your SAM percentage; small changes to either compound significantly. This models a single market scenario and assumes your percentage estimates remain constant. Results are for illustration only and don't account for competitive dynamics, market shifts, or execution variables.


Enter Values

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Formula Used
Total addressable market
Serviceable available %
Obtainable capture %

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

TAM/SAM/SOM calculator estimates market opportunity at three levels. TAM (Total Addressable Market): total demand if 100% market share globally. SAM (Serviceable Available Market): segment your business can realistically reach. SOM (Serviceable Obtainable Market): realistic capture in 3-5 years given competition.

Example: TAM 10B (global cloud storage market). SAM 15% = 1.5B (-speaking SMB segment). SOM 2% = 30M (realistic 5-year capture given competitors). Investors expect founders to know all three - TAM shows ambition, SOM shows realism.

Methods: top-down (start with industry data, narrow), bottom-up (start with unit economics × addressable customers), value theory (price × number of users who'd pay). Bottom-up most credible for VCs. Beware inflated TAMs - 'we're targeting the 100B fitness market' is meaningless if you're a yoga app.

Run it with sensible defaults

Using total addressable market of 10,000,000,000, serviceable available of 15%, obtainable capture of 2%, the calculation works out to 30,000,000.00. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Total Addressable Market (TAM), Serviceable Available % (SAM), and Obtainable Capture % (SOM) — do not pull with equal force. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

How the math works

SAM = TAM × SAM%. SOM = SAM × SOM%.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.

Example Scenario

TAM ££10,000,000,000 × 15% SAM × 2% SOM = 30,000,000.00 obtainable.

Inputs

Total Addressable Market (TAM):£10,000,000,000
Serviceable Available % (SAM):15
Obtainable Capture % (SOM):2
Expected Result30,000,000.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

This calculator models market opportunity by applying successive percentage filters to a total market size. It computes the Serviceable Available Market (SAM) by multiplying the Total Addressable Market (TAM) by the SAM percentage, representing the portion of the total market addressable by your product or service. It then calculates the Serviceable Obtainable Market (SOM) by multiplying SAM by the SOM percentage, representing your projected capture of that serviceable market. The model assumes that both percentage inputs remain constant and treats market segments as independent. It does not account for competitive dynamics, market growth or contraction, changing customer preferences, geographic variations, or the effort required to achieve stated capture rates. Results represent a simplified scenario and should be combined with qualitative market research and competitive analysis.

Frequently Asked Questions

How to calculate TAM?
Three methods: (1) Top-down: industry research × your subset (e.g., Gartner reports global SaaS market = £X). (2) Bottom-up: addressable customers × ARPU. (3) Value theory: hours saved × $/hour × user count. Bottom-up most defensible for investors.
What SAM % is reasonable?
Depends on geographic, language, and segment focus. -speaking SaaS targeting SMBs: 15-25% of global TAM. Single-country B2B: 3-7%. Niche vertical (e.g., dental software): 1-3%. Be specific about exclusions: 'we exclude financial services, and 1-person businesses'.
What SOM % is realistic?
5-year horizon: 1-5% of SAM is typical for early-stage startup. 10% is aggressive (requires market leadership). 20%+ requires winner-takes-all dynamics. VCs scrutinise SOM more than TAM - if your SOM implies dominating the market, expect tough questions on competitive moats.
Why investors care?
Determines venture-scale: 1B TAM rarely justifies VC investment (need 10B+ for unicorn outcomes). SAM shows you understand your specific market. SOM shows realism. Founders who quote TAM but not SOM signal naivety. Pitch should always have all three.

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