TAM SAM SOM calculator for market sizing
Size your market from the bottom up. Enter how many potential customers exist, what each spends a year, the share you can serve and the share you can win in three years. Add your work email to see TAM, SAM and SOM in revenue and customers, with an AI analysis for your market.
- TAM: total addressable market, in revenue and customers
- SAM: serviceable available market
- SOM: serviceable obtainable market within three years
- A one-line verdict in yearly revenue and customers
- An AI analysis with next steps
This TAM SAM SOM calculator sizes your market from the bottom up. Potential customers times what each spends a year gives TAM; the share you can serve gives SAM; the share of that you can win within three years gives SOM. Each comes as yearly revenue in your currency and as a number of customers.
How the calculator works
- What you sell: a short description that gives the AI analysis context. It does not change the numbers.
- Potential customers in your total market: people or companies who could buy this category.
- Average yearly spend per customer.
- Share you can serve: limited by geography, segment and channels.
- Share of that you can win in 3 years.
Business type and market give the analysis more context, and currency labels your results (AED, SAR, QAR, GBP, USD or EUR). The example column uses the calculator's default values (illustrative): specialty coffee subscriptions in the UAE, with 2,000,000 potential customers spending AED 600 a year, 20% you can serve and 2% of that you can win. The customer count is an example, not a market estimate.
| Result | Formula | Example |
|---|---|---|
| TAM (total addressable market) | Potential customers × yearly spend | 2,000,000 × 600 = AED 1,200,000,000 |
| SAM (serviceable available market) | TAM × share you can serve | 1,200,000,000 × 20% = AED 240,000,000 |
| SOM (serviceable obtainable market) | SAM × share you can win in 3 years | 240,000,000 × 2% = AED 4,800,000 |
| Customers you can serve | Potential customers × share you can serve | 2,000,000 × 20% = 400,000 |
| Customers in 3 years | Customers you can serve × share you can win | 400,000 × 2% = 8,000 |
The verdict puts SOM in one sentence. In the example: "Winning 2.00% of your serviceable market means about AED 4,800,000 a year from 8,000 customers." An analysis with next steps follows, written by AI from your numbers (or rule-based if the AI is unavailable). For definitions, see total addressable market in the glossary.
How to read your result
SOM is the planning number. TAM shows the size of the category; SOM is what revenue goals and budgets should fit inside. It is yearly revenue at the share you expect to hold within three years, not three years of revenue added together.
Every input scales SOM directly. Double the share you can win from 2% to 4% and SOM doubles to AED 9,600,000 from 16,000 customers. Because small percentages move SOM this much, ground the obtainable share in your sales capacity, channel reach and the competitors already serving the market. There is no standard right share.
Check it against your budget. Winning 8,000 customers has to be affordable at your maximum customer acquisition cost, which the marketing budget calculator works out from your revenue target and margin.
Sizing markets in the GCC and the UK
Run the calculator once per country rather than once for the region. Spend per customer, the share you can serve and the currency all differ between the UAE, Saudi Arabia, Qatar and the UK, so convert the results to one currency before adding them up.
Leave VAT out of yearly spend so SOM reflects revenue you keep. The standard rate is 5% in the UAE, 15% in Saudi Arabia since July 2020 and 20% in the UK, and Qatar's General Tax Authority lists no VAT among its taxes.
Your serviceable share should reflect where you can sell and deliver today. If you deliver only in Dubai and Abu Dhabi, customers elsewhere in the UAE count toward TAM but not SAM.
How Grower helps
Grower's AI marketing planner includes TAM, SAM and SOM with CAGR and a five-year forecast that recalculate as inputs change, alongside competitor intelligence and buyer personas with ready-to-use targeting for each ad channel. Your team refines the plan, and every campaign runs from it.
Frequently asked questions
How do you calculate TAM, SAM and SOM?
Multiply potential customers by average yearly spend for TAM, multiply TAM by the share you can serve for SAM, and multiply SAM by the share you can realistically win for SOM. With 2,000,000 customers at AED 600 a year, 20% serviceable and 2% obtainable, that gives AED 1.2 billion, AED 240 million and AED 4.8 million a year.
What is a realistic SOM?
There is no standard percentage. SOM should reflect what your team, channels and budget can win against existing competitors within three years. Test it from the cost side too: the 8,000 customers in the example must be affordable at your maximum CAC, which the marketing budget calculator works out from your revenue target and margin.
Is this top-down or bottom-up market sizing?
Bottom-up. It starts from a count of customers and what each spends, rather than a slice of a total from an industry report. That makes every assumption visible and easy to challenge. If you also have a top-down figure, compare the two: a large gap is a sign that one of your inputs needs another look.
Want TAM, SAM and SOM that update as your plan changes? Book a demo for a live walkthrough tailored to your channels. To turn SOM into a budget, try the marketing budget calculator.