TAM SAM SOM Calculator, Free Market Size Calculator

Free market size calculator. How to calculate TAM, SAM and SOM bottom-up, with a SOM capped by what you can actually sell. Or let NELL research sourced numbers for your idea.

Frequently asked questions

How do you calculate TAM, SAM and SOM?

Calculate TAM as the number of possible buyers times what one pays a year. Multiply TAM by the share in your regions, the share that fits your segment and the share your channel can reach to get SAM. SOM is the lower of a realistic share of SAM and the customers you can close in your time frame, times the annual price.

How do you calculate SOM?

SOM is the lower of two numbers times your annual price: the share of SAM customers a new company can win, usually 1 to 5 percent depending on competition, and the new customers your team can close per month times the months in your plan.

What is a good SOM as a percentage of SAM?

For a new company, 1 to 5 percent of SAM over three to five years is the usual range: closer to 1 percent in a crowded market and up to 5 percent when there are few direct rivals. If your sales capacity cannot close that many customers in the time, capacity sets the SOM instead.

What is the difference between TAM, SAM and SOM?

TAM (total addressable market) is everyone who could buy. SAM (serviceable addressable market) is the part your product, region and channel can serve. SOM (serviceable obtainable market) is what you can realistically win in your plan.

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

Bottom-up, then check it top-down. A bottom-up TAM, buyers times price, is the number investors trust. A published analyst figure is a useful check: if the two are more than three times apart, one of your inputs needs another look.

Is this market size calculator free?

Yes. The calculator is free and needs no sign-up. The optional research, where NELL finds sourced numbers for your idea, is free too, up to five runs a day.

Where do the researched numbers come from?

Live web search at the time you run it: government and trade association counts for buyers, published pricing for what one buyer pays, and analyst reports for the top-down check. Every number shows its source, date and how much to trust it.