# What are my TAM, SAM and SOM?

Computes the total addressable market (TAM), the serviceable available market (SAM) and the serviceable obtainable market (SOM) in dollars a year, from customer counts, yearly revenue per customer and the share you can win.

- Page: https://www.acalculator.org/finance/tam-sam-som-calculator
- JSON spec: https://www.acalculator.org/finance/tam-sam-som-calculator.json
- Version: 1b0e5ee3a81a

## Default answer

Example with the default inputs (Customers in the market 1,000,000, Customers you can serve 200,000, Revenue per customer per year $120.00, Share you can win 5%): At $120.00 a year per customer, the TAM is $120,000,000.00, the SAM is $24,000,000.00 and the SOM is $1,200,000.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| customers | Customers in the market | Every potential buyer of this kind of product: the whole market. |
| serviceable | Customers you can serve | The part of the market your product, price and reach can serve. |
| revenue | Revenue per customer per year | What one customer spends on this kind of product in a year, on average. |
| share | Share you can win | The share of the serviceable market you expect to win: your obtainable market share. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| tam | TAM (total addressable market) | Customers in the market × revenue per customer per year. |
| sam | SAM (serviceable available market) | Customers you can serve × revenue per customer per year. |
| som | SOM (serviceable obtainable market) | SAM × the share you can win ÷ 100. |
| samShare | SAM as a share of TAM | Customers you can serve ÷ customers in the market × 100. |
| somCustomers | Customers in the SOM | Customers you can serve × the share you can win ÷ 100, to the nearest whole customer. |

## Method

TAM = customers in the market × revenue per customer per year; SAM = customers you can serve × revenue per customer per year; SOM = SAM × share you can win ÷ 100.

## Assumptions

- Every customer spends the same average amount a year, in the whole market and in the part you can serve.
- The share you can win is your own estimate, for example your revenue last year ÷ your SAM last year.
- Arithmetic is exact on the typed decimals; money shows to the cent, halves up.

## Worked examples

1. customers = 27,790,000, serviceable = 20,000,000, revenue = $2,500.00, share = 1.25% gives tam = $69,475,000,000.00, sam = $50,000,000,000.00, som = $625,000,000.00, somCustomers = 250,000. Source: HubSpot, "TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?" (TAM = total customers in the market × average yearly revenue per customer; SAM = the customers you can serve × that revenue; SOM = market share × SAM). https://blog.hubspot.com/marketing/tam-sam-som: 27.79 million × $2,500 = $69.475 billion (HubSpot writes $69.47 billion).
2. customers = 1,000,000, serviceable = 200,000, revenue = $120.00, share = 5% gives tam = $120,000,000.00, sam = $24,000,000.00, som = $1,200,000.00, samShare = 20%, somCustomers = 10,000. Source: HubSpot, "TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?" (TAM = total customers in the market × average yearly revenue per customer; SAM = the customers you can serve × that revenue; SOM = market share × SAM). https://blog.hubspot.com/marketing/tam-sam-som.
3. customers = 3, serviceable = 1, revenue = $99.99, share = 0% gives tam = $299.97, sam = $99.99, som = $0.00, samShare = 33.333333%. Source: HubSpot, "TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?" (TAM = total customers in the market × average yearly revenue per customer; SAM = the customers you can serve × that revenue; SOM = market share × SAM). https://blog.hubspot.com/marketing/tam-sam-som.

## FAQ

### What are TAM, SAM and SOM?

TAM, the total addressable market, is the yearly revenue if every possible customer bought from you. SAM, the serviceable available market, is the part of the TAM your product, price and reach can serve. SOM, the serviceable obtainable market, is the part of the SAM you can realistically win.

### How do I calculate TAM?

Multiply the number of customers in the market by the average yearly revenue per customer. 27.79 million customers who each spend $2,500 a year make a TAM of 27,790,000 × 2,500 = $69.475 billion.

### How do I calculate SAM?

Count only the customers you can serve, such as those in your region or price range, and multiply by the same yearly revenue per customer. 20 million customers at $2,500 a year make a SAM of $50 billion.

### How do I calculate SOM?

Multiply the SAM by the share of it you expect to win. One way to estimate the share is your revenue last year divided by your SAM last year: $500 million of a $40 billion SAM is 1.25%, and 1.25% of a $50 billion SAM is a SOM of $625 million.

### What if I only know the market size in dollars?

Divide the market size by the yearly revenue per customer to get the number of customers, and enter that. A $120 million market where customers spend $120 a year has 1 million customers.

### Is this a top-down or a bottom-up market size?

Bottom-up: it builds the market from a count of customers and what each spends. A top-down estimate starts from a published industry total and takes shares of it. Bottom-up numbers are easier to check, because you can see where each one comes from.

## Sources

- HubSpot, "TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?": TAM = total customers in the market × average revenue per customer; SAM from the customers you can serve; SOM = last year's market share × this year's SAM, with the luxury apparel examples. https://blog.hubspot.com/marketing/tam-sam-som (retrieved 2026-10-18)