Free tool
TAM, SAM and SOM calculator
Size your market bottom-up in under five minutes: count your customers, multiply by what they pay, then narrow to what you can serve and win. Works in rupees or dollars.
Last reviewed by the Hoog research team
Results
- TAM Total addressable market
- ₹1,200 crore
- SAM Serviceable addressable market
- ₹420 crore
- SOM Serviceable obtainable market
- ₹12.6 crore
That is about 7,000 customers you can serve, and 210 paying customers to win in 3–5 years.
Market sizing (bottom-up) TAM: ₹1,200 crore = 20,000 customers × ₹6 lakh a year SAM: ₹420 crore = 35% serviceable (7,000 customers) SOM: ₹12.6 crore = 3% share in 3–5 years (210 customers) Made with the free TAM calculator at hoogadvisory.com/tools/tam-calculator
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How it works
Three numbers, each narrower than the last
TAM = potential customers × average annual revenue per customer. This is the ceiling if everyone who could buy your type of product bought it from you.
SAM = TAM × the share of customers you can actually serve. Remove geographies you don't sell in, company sizes your product doesn't fit and segments your team can't reach.
SOM = SAM × the share you can realistically win in three to five years. This is the number your revenue plan should connect to.
A large gap between your bottom-up number and published top-down estimates is a signal to revisit your market definition, not to average the two. Read more in top-down vs bottom-up market sizing, or follow the five steps in how to size your market before your next funding round.
Market Sizing Sprint
Need numbers your board and investors will trust?
In about two weeks, Hoog builds a bottom-up model from verified sources and buyer evidence, cross-checks it top-down, and delivers an Evidence Ledger that traces every number to its source.
FAQ
TAM calculator questions
What is the difference between TAM, SAM and SOM?
TAM (total addressable market) is the revenue available if every possible customer bought your type of product. SAM (serviceable addressable market) is the part of TAM your product, geography and sales channels can actually reach today. SOM (serviceable obtainable market) is the part of SAM you can realistically win in the next three to five years.
Why use a bottom-up calculation?
A bottom-up estimate multiplies a count of real customers by what each one pays, so every assumption is visible and can be checked. Top-down estimates start from a large published total and narrow it, which is quick but inherits the definitions and errors of the source. Investors usually trust a bottom-up number more, and the strongest models compare both.
Where do I find the number of potential customers?
Common sources are government and company registries, industry association member lists, business databases, trade directories and your own CRM. For a defensible number, write down the source and the filters you used, such as company size, sector and geography.
What market share should I assume for SOM?
Base it on your sales capacity, win rate and competition rather than a round percentage. Work out how many deals your team can close each year and how many of those you are likely to win, then check that the resulting share makes sense against competitors.
Is this calculator enough for a fundraising deck?
It gives you a clear structure and a first estimate. Before investors or a board rely on the numbers, each input should be backed by a source or by evidence from buyers. Hoog's Market Sizing Sprint does that in about two weeks, with every number traced to its source.
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