L3VLUP

Market size calculator

Size a market top-down and bottom-up: TAM, SAM and SOM, and whether the two methods agree.

TAM · SAM · SOM · Free

Top-down

People, households or businesses.

Bottom-up

Time to get there

TAM

240.0m

Total addressable market

SAM

72.0m

Serviceable addressable

SOM

7.2m

Obtainable: 3.0% of TAM

From the whole market to what you can win

TAMSAMSOMBottom-up

Bottom-up obtainable market

7.2m

0% apart: the two methods broadly agree

Customers the SOM implies

5,000

5.9 years to reach at 40% growth

How it works

Top-down: the people, households or businesses who could buy, times the share who buy a product of this kind, times what each pays a year, is the total addressable market. The share of it your product and channels can reach is the serviceable addressable market; the share of that you can realistically win is the serviceable obtainable market.

Bottom-up: the customers you could actually serve in the period, times the revenue each brings, is a second estimate of the obtainable market from the other direction.

The two rarely match. The gap between them is the useful number: a market size only one method supports is a guess with a decimal point.