SAM calculator: serviceable available market
SAM is the part of the total market you can serve today, given your product, business model and where you sell: TAM × the share you can serve.
The formula
SAM = TAM × share you can serve
Worked example: £60,000,000 a year
The example uses the guide's seed round, £200,000 for 20%, with a matching cap table, exit, fund and market.
- 200,000 customers × £1,200 = TAM £240.0m
- × 25% you can serve = SAM £60.0m
Try it with your numbers
Work out your SAM
It starts on the example. Replace any figure with your own; nothing you type leaves your browser.
Your SAM
£60,000,000
a year
- 200,000 customers × £1,200 = TAM £240.0m
- × 25% you can serve = SAM £60.0m
Formula: TAM × share you can serve.
- Customers
- 50,000
Everything your numbers show
27 of 27 worked out so far. Select one for its page.
- Valuation£1,000,000post-money
- Pre-money valuation£800,000
- Post-money valuation£1,000,000
- Equity20.0%Equity sold
- Dilution70.0%kept by existing shareholders, down from 100.0%
- Option pool142,857new pool shares
- Fully diluted60.0%Fully diluted ownership
- SAFE89,286shares
- Loan note96,429shares
- Pro rata rights£200,000Pro rata amount
- Liquidation preference£1,000,000to the investor
- Vesting180,000after 18 months
- Cliff120,000at month 12
- SEIS£10,000SEIS relief
- EIS£6,000EIS relief
- VCT£4,000VCT relief
- TAM£240,000,000a year
- SAM£60,000,000a year
- SOM£3,000,000a year
- Down roundDown round
- Up roundDown round
- Flat roundDown round
- MOIC2.80x
- IRR22.9%a year
- TVPI1.50x
- DPI0.40x
- Dry powder£24,000,000
How to read your result
SAM is the market your plans for the next few years should fit inside.
Watch out for
Leave out markets you would need a different product or licence to enter.
Last checked . Estimates only, not financial, tax or legal advice: check your accounts and documents, and take advice before you act. More terms in the startup glossary.