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Step 1: Total Addressable Market (TAM)
Step 2: Serviceable Available Market (SAM)
Step 3: Serviceable Obtainable Market (SOM)
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About

Investors generally ignore vague claims like "everyone is our customer." A credible pitch deck requires a rigorous market sizing exercise using the TAM, SAM, SOM framework. This tool helps founders structure their market logic from the ground up, moving away from "Top-Down" guesswork (which is often inflated) to "Bottom-Up" verification.

TAM (Total Addressable Market) represents the total revenue opportunity if you had 100% market share. SAM (Serviceable Available Market) filters this by geography or specialized segment. Finally, SOM (Serviceable Obtainable Market) is the realistic short-term target you can capture given your current resources. This calculator provides a guided workflow to quantify these metrics using standard ARPU (Average Revenue Per User) benchmarks.

market size TAM SAM SOM startup pitch deck business analysis

Formulas

The Bottom-Up calculation is derived as follows:

TAM = Ntotal × ARPU
SAM = TAM × %geo_fit
SOM = SAM × %market_share

Where Ntotal is the total count of potential customers and ARPU is Average Revenue Per User.

Reference Data

Industry SectorAvg. ARPU (Monthly)Avg. ARPU (Annual)
SaaS (B2B Enterprise)$5005000$6k60k
SaaS (B2C / SMB)$20100$2401.2k
E-Commerce (Fashion)N/A$80 /order
Mobile App (Subscription)$515$60180
EdTech / CoursesN/A$200 /user
FinTech (Consumer)$520$60240

Frequently Asked Questions

Top-Down starts with a large number (e.g., 'The coffee market is $100B') and assumes you'll get 1%. Bottom-Up starts with fundamentals: "We can sell to 5,000 cafes at $100/month". Investors strongly prefer Bottom-Up because it validates your pricing and sales strategy.
For an early-stage startup, aiming for 1-5% of your SAM within 3-5 years is considered realistic. Claiming 20%+ usually signals naivety about competition and sales cycles.
Yes. If your business model is transactional (e.g., selling furniture), TAM is (Total Customers) × (Avg Order Value) × (Frequency). For subscriptions, it's (Total Subscribers) × (Annual Contract Value).