Guide
TAM, SAM, and SOM: how to calculate your addressable market
Before you pitch to investors, launch a product, or send your first outbound email, you need to know the size of the opportunity. This guide breaks down TAM, SAM, and SOM and shows you how to calculate your market in a way that reflects reality, not just theory.
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Inside this guide, you'll learn:
- What TAM, SAM, and SOM are and why they’re essential building blocks of any go-to-market strategy
- The difference between theoretical market size and your real, reachable addressable market
- How to calculate TAM, SAM, and SOM step by step, with worked examples and practical formulas
- Why reachability matters and how outdated data or missing decision-makers can make your TAM unactionable
- The pros, cons, and limitations of market sizing models, and how to avoid common pitfalls
- How to use your SOM to set sales targets, shape marketing campaigns, and build a strategy grounded in reality
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