How do I calculate TAM / SAM / SOM?

Use the formula(s) on this page. Keep inputs consistent by period and basis.

What are good benchmarks?

Benchmarks vary by model and stage. See Benchmarks on this page for ranges.

Inconsistent definitions/time windows; wrong basis (revenue vs gross profit).

Pitchkit

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GLOSSARY

TAM / SAM / SOM

Market sizing: total, served, and obtainable market.

Bottom-up first

Prefer bottom-up using counts x pricing. Top-down is weak if not bridged.

Worked example

ICP: 120k SMBs × $600/yr → TAM $72M; SAM: English‑speaking 40k × $600 → $24M; SOM: target 10% → $2.4M.

Common pitfalls

Using global search volume; unrealistic SOM; not matching pricing to ICP size/usage.

How to show in your deck

Market slide: one clean bottom‑up table with sources; brief note on expansion vectors.

Back to Glossary

GLOSSARY

TAM / SAM / SOM

Market sizing: total, served, and obtainable market.

Bottom-up first

Prefer bottom-up using counts x pricing. Top-down is weak if not bridged.

Worked example

ICP: 120k SMBs × $600/yr → TAM $72M; SAM: English‑speaking 40k × $600 → $24M; SOM: target 10% → $2.4M.

Common pitfalls

Using global search volume; unrealistic SOM; not matching pricing to ICP size/usage.

How to show in your deck

Market slide: one clean bottom‑up table with sources; brief note on expansion vectors.

TAM / SAM / SOM

Bottom-up first

Worked example

Common pitfalls

How to show in your deck

TAM / SAM / SOM

Bottom-up first

Worked example

Common pitfalls

How to show in your deck

Deck snippet

FAQs

Related terms

Bottom-up first

Worked example

Common pitfalls

How to show in your deck

Bottom-up first

Worked example

Common pitfalls

How to show in your deck

Deck snippet

FAQs

How do I calculate TAM?

What are good benchmarks?

Common pitfalls?

Related terms