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Total Addressable Market Calculator

Formula

The formula to calculate the Total Addressable Market is:

$\text{TAM} = \text{ACC} \times \text{ACV}$

Where:

$\text{TAM}$ is the total addressable market ($)
$\text{ACC}$ is the total number of accounts in the entire industry
$\text{ACV}$ is the annual contract value ($)

What is Total Addressable Market?

Total Addressable Market (TAM) is a term used to describe the market size of a certain industry. This calculator uses a bottom-up approach that uses industry and internal company data to determine the TAM.

Example Calculation

Let's assume the following values:

Total Number of Accounts (ACC) = 1,000
Annual Contract Value (ACV) = $10,000

Using the formula:

$\text{TAM} = 1,000 \times 10,000 = 10,000,000 \, \text{\$}$

The Total Addressable Market is $10,000,000.