TAM, SAM and SOM Market Size Calculator
Estimate your total, serviceable and obtainable market in four ways: industry benchmarks, top-down, bottom-up and value theory. Then compare the results side by side before you put a number in your pitch deck.
The four methods
Top-down starts from a total market figure and narrows it by your target segment, your geographic reach and the market share you expect in three to five years. Bottom-up multiplies the number of potential customers by revenue per customer, then applies the share you can reach and your conversion rate. Value theory starts from what your product saves or earns a customer compared with what they use today. The benchmarks tab shows market size and growth by industry and region from anonymised Equidam data.
How to read the result
TAM is the yearly revenue if every potential customer bought. SAM is the part your business model and geography can serve. SOM is the part you can realistically win in the medium term.
Example: accounting software for small firms
You sell accounting software to small firms. There are 200,000 firms in your target countries, you can reach 25% of them, you expect 2% of those to buy, and you charge $1,200 a year. Bottom-up gives a TAM of $240 million, a SAM of $60 million and a SOM of $1.2 million.
Market size is one input to a startup valuation. Start a free valuation to see how the rest adds up.