The formula for calculating TAM is:

[robiulhasan]

How do you calculate TAM?
You can calculate TAM by multiplying the number of potential customers/users by the average revenue each customer would generate annually. This calculation can be based on factors such as location, demographics, industry trends, and pricing models.


# of customers/users in market X Annual value of each customer/user

For example, let’s say your business has a potential customer base of 9,000 w cellphone number in philippines
ith a value of $1,300 each. Your TAM would be $11.7 million.

2. Serviceable Addressable Market (SAM)
SAM (Serviceable Addressable Market) is the portion of the TAM that a company can target and serve with its products or services. It is the subset of the total market that aligns with a company's resources, capabilities, and strategic focus.

By understanding and targeting the SAM strategically, companies can maximize their revenue growth, market share, and long-term success.