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Sales & marketing · Calculator companion · By K Imports

TAM, SAM and SOM market sizing: practical guide

This guide explains how to use the Count.ie tam, sam and som market sizing. Build a bottom-up market estimate from potential accounts and annual customer spend. Follow the inputs, method and worked example below, then compare your own scenario.

Guide written .

Open the TAM, SAM and SOM market sizing calculator

What to prepare

  • Define the event, conversion, customer and attribution period before collecting data.
  • Use spend and outcomes from the same reporting window.
  • Distinguish revenue, contribution profit, recurring revenue and customer lifetime assumptions.

Understand the inputs

The calculation method

TAM = accounts × annual revenue per account. SAM applies the serviceable share; SOM applies attainable share to SAM.

Worked example

Illustrative inputs and their result.

Example inputs

Total possible accounts
20000
Annual revenue per account (€)
1500
Serviceable share of accounts (%)
30
Attainable share of serviceable market (%)
5

Calculated example result

Total Addressable Market
€30,000,000.00
Serviceable Market
€9,000,000.00
Obtainable Market
€450,000.00

How to interpret the result

A marketing metric depends on its attribution and cost definitions. A favourable ratio is not proof that advertising caused every sale or that future customers will behave the same way.

Compare campaigns with the same attribution window and outcome definition. Test a lower conversion rate or shorter retention period before extrapolating a promising result.

Common mistakes to avoid

  • Do not double-count a customer or conversion reported by multiple channels.
  • Revenue is not the same as profit available to fund acquisition.
  • Small samples and changing cohorts can produce unstable comparisons.

Assumptions and sources

Account counts, customer spend and market share are assumptions that need evidence and competitive assessment.

If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.

Related sales & marketing guides

Try your own scenario in the calculator

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