tam-calculator
Use this skill when you need a credible market size for a B2B product: a board or investor deck, territory planning, deciding which segment to attack, or checking whether outbound has enough accounts to sustain a quota. Builds a bottom-up TAM, SAM and SOM from countable accounts and real prices instead of top-down analyst numbers, shows every assumption, and turns the result into an account count per segment that sales can actually work.Use this when someone asks "how big is the market?" or "do we have enough accounts?". It produces a bottom-up size that survives questions, because every number traces to a count or a price.
Inputs
- ICP and the segments you sell to.
- Pricing and the average first-year contract value per segment.
- Account counts per segment from a company database, industry registry or association data. Estimates are acceptable if labelled.
The play
1. Count accounts, do not quote reports
Top-down numbers ("the sales software market is $X billion") cannot be worked and rarely survive diligence. Start from countable companies: headcount band × industry × region.
2. Define the three layers
- TAM: every account that could use the product at full price, globally.
- SAM: accounts you can serve today: regions, languages, integrations and segments you support.
- SOM: accounts you can realistically win in 3 years given team size, win rates and sales capacity.
3. Price each segment
Accounts × annual contract value. Use real deal data per segment; a blended average hides that enterprise accounts are 10x the value and 3x the cycle length.
4. Pressure-test SOM with capacity
SOM must be reachable by the go-to-market you have or plan to fund. Capacity check: reps × accounts each can work per year × win rate. If capacity reaches 400 wins and SOM says 4,000, SOM is wrong. Read references/sizing-worked-example.md for the full table.
5. Check outbound coverage
Divide SAM accounts by the number of reps and by contacts touched per rep per quarter. If a team will exhaust its SAM in under 4 quarters, flag it: list fatigue is coming and the ICP needs widening or new channels.
Output format
Segment table: segment | accounts | ACV | TAM $ | in SAM? | SOM share | SOM $
Totals: TAM $X (N accounts) | SAM $Y (N) | SOM $Z (N) in 3 years
Assumptions: <each with source or "estimate">
Capacity check: <reps x accounts x win rate = wins/year>
Coverage: <quarters until SAM is fully touched at current volume>
Biggest uncertainty: <one line + how to reduce it>
What good looks like
- Every number in the deck can be traced to a row in the assumption table.
- SOM is constrained by capacity, not by ambition. "1% of a huge market" is the classic red flag investors look for.
- Segments are separated, because the decision the sizing supports is usually "which segment first".
- The best version ends with an account list size, not just a dollar figure, so sales can act on it.
Rules
- MUST build bottom-up from account counts and prices.
- MUST label every estimate as an estimate.
- NEVER present a top-down analyst figure as your TAM without the bottom-up check.
- NEVER let SOM exceed what the sales capacity check supports.
Example prompts
- "Size the market for our payroll tool for restaurant groups in the US and UK."
- "Build TAM, SAM and SOM for our seed deck, bottom-up, with every assumption shown."
- "We have 6 SDRs. Do we have enough accounts in our SAM for the next two years?"