Market-Size Calculator

This tool computes two independent, industry-standard market-sizing approaches live in your browser from the numbers you enter -- nothing is pre-filled with a real figure for any company or market. Top-down (TAM -> SAM -> SOM): start from a total addressable market (TAM) value you supply -- typically pulled from an industry report, government statistics agency, or trade association -- then narrow it in two steps. SAM = TAM x (the percentage of that market your product/geography/segment can actually serve). SOM = SAM x (the percentage of SAM you could realistically capture given competition and go-to-market capacity, usually in a 1-3 year window). Each step is a straight multiplication; the tool does not adjust for inflation, currency, or time period, so make sure the TAM you enter and the shares you apply are already in consistent units. Bottom-up: Market size = Number of potential customers x Average annual revenue per customer (ARPU). This builds the estimate from concrete, defensible inputs (a customer count you can source or estimate, and a price/ARPU you can source or estimate) rather than starting from a published market-wide figure, which is why investors and analysts generally treat a bottom-up estimate as the more credible one when the two approaches disagree. Common practice is to run both and treat a gap of more than roughly 15% between them as a signal to re-check your assumptions, not to average the two together. Illustrative worked example (hypothetical numbers, not a real market): if you enter a $50,000,000,000 TAM with an 18% serviceable-addressable share and a 6% obtainable share, the tool computes SAM = $9,000,000,000 and SOM = $540,000,000. If you instead enter 120,000 potential customers at $4,200 average annual revenue each in the bottom-up panel, it computes a bottom-up TAM of $504,000,000 -- illustrating why the two methods are meant to be cross-checked against each other, not treated as automatically identical.

The exact fields this calculator reads and produces, for transparency.

The research methods this calculator is based on.

Every source cited on this page, in the order it was added.