TAM, SAM, SOM Calculator
Calculate your Total Addressable Market, Serviceable Addressable Market, and Serviceable Obtainable Market in minutes. Free for SaaS founders.
TAM (Total Addressable Market)
The total revenue opportunity available if you achieved 100% market share. Think "everyone who could possibly use this."
SAM (Serviceable Addressable Market)
The portion of TAM your business can realistically serve based on your location, capabilities, and business model.
SOM (Serviceable Obtainable Market)
The portion of SAM you can realistically capture in the near term, considering competition and resources.
For Fundraising: Investors want to see a large enough TAM to justify their investment (typically $1B+).
For Strategy: Helps you focus on the right segments and set realistic growth targets.
For Validation: Confirms there's enough demand to build a sustainable business.
How to Use This TAM SAM SOM Calculator
Our free TAM SAM SOM calculator helps SaaS founders and entrepreneurs quickly estimate their market size. Here's how to get accurate results:
Step 1: Define Your Industry
Be specific about your SaaS category. Instead of "software," say "project management for remote teams" or "CRM for real estate agents." The more specific, the better your results.
Step 2: Identify Your Target Market
Who are your ideal customers? Define them by company size, industry, geography, or use case. Examples: "Small businesses (1-50 employees) in North America" or "Enterprise companies in FinTech."
Step 3: Estimate Annual Revenue Per Customer
Calculate how much you expect to earn from each customer annually. For example, if your SaaS is $99/month, that's approximately $1,200/year (accounting for churn).
Step 4: Set a Realistic Market Share Goal
Most new startups capture 1-5% of their SAM within the first few years. Be conservative here - it's better to exceed expectations than fall short.
Understanding Your Results
After calculating your TAM, SAM, and SOM, here's what to do with the numbers:
- TAM: Use this number when talking to investors about market opportunity
- SAM: Focus your go-to-market strategy on this segment
- SOM: Set this as your 3-5 year revenue goal
Why ReadyToRelease for Market Research?
While this calculator gives you a quick estimate, ReadyToRelease provides comprehensive AI-powered market research that includes:
- Precise market sizing based on real-time data sources
- Detailed competitor analysis with pricing and positioning
- Financial projections and business model recommendations
- Go-to-market strategy tailored to your market
All for just $3 - 97% cheaper than hiring a consultant ($5,000+) and delivered in 5 minutes instead of weeks.