[GTM glossary](/glossary.md) Serviceable addressable market Market & Targeting # Serviceable addressable market (SAM) Also known as: SAM, serviceable available market In short Serviceable addressable market (SAM) is the portion of the total addressable market that your product and sales model can actually serve. It applies limits such as region, language, company size, and product fit. SAM sits between TAM, the theoretical ceiling, and SOM, the share you can realistically win. It is the number most useful for planning coverage because it reflects who you can sell to today. ## How to calculate SAM Start with TAM and remove what you cannot serve. ### Bottom-up example Say TAM is 20,000 companies. Your product supports only two languages, which covers 12,000. Your sales team covers only mid-market and enterprise, leaving 7,000. At $15,000 average annual contract value, SAM is about $105 million. ### Common filters Geography, language, compliance requirements, integrations supported, company size, and channels you operate in. --- ## TAM vs. SAM vs. SOM * **TAM:** Everyone who could buy. A ceiling. * **SAM:** The part you can serve with your current product and go-to-market. * **SOM:** The share of SAM you can realistically win in a set period. --- ## How GTM teams use SAM * **Coverage planning:** Decide how many reps and accounts are needed to work the market. * **Prioritization:** Compare segments inside SAM before investing. * **Roadmap decisions:** See how much new SAM an integration or new region would unlock. * **Goal checks:** Test whether a revenue target is plausible against the serviceable market. --- ## Common mistakes * **Copying TAM:** Calling the whole market serviceable ignores real constraints. * **Using top-down only:** A generic report percentage hides who the accounts are. Build from real account counts. * **Not updating:** SAM grows as your product, regions, and channels expand. --- ## Serviceable addressable market FAQs **What is serviceable addressable market (SAM)?** Serviceable addressable market is the part of the total addressable market that your product and go-to-market model can actually serve, after limits such as region, language, company size, and product fit. It is a subset of TAM. **How do you calculate SAM?** Start with your TAM, then remove accounts you cannot serve because of geography, language, size, compliance, or missing features. Multiply the remaining account count by your expected annual contract value to get SAM in revenue terms. **How do TAM, SAM, and SOM differ when planning coverage?** TAM is the total market if every possible customer bought. SAM is the portion you can serve with your current product and sales model. SOM is the share of SAM you can realistically win within a given period. **Why does SAM matter more than TAM for planning?** TAM is a theoretical ceiling, while SAM reflects who you can actually sell to today. Coverage, hiring, and target decisions based on SAM are more realistic because they account for real product and go-to-market limits. Share term --- ## More related phrases * [Top-down market sizing](/glossary/top-down-market-sizing.md) * [TAM calculator](/glossary/tam-calculator.md) * [TAM analysis](/glossary/tam-analysis.md) ## Similar phrases * [Bottom-up market sizing](/glossary/bottom-up-market-sizing.md) Bottom-up market sizing estimates a market by counting real customers and multiplying by what each would pay, building the total from unit-level data rather than from broad industry figures. * [Market sizing](/glossary/market-sizing.md) Market sizing is the process of estimating how many potential customers exist for your product and how much revenue they represent, so you can choose where to focus. * [Serviceable obtainable market (SOM)](/glossary/serviceable-obtainable-market.md) Serviceable obtainable market (SOM) is the share of your serviceable market you can realistically win in a set period, given your team, budget, competition, and sales capacity. * [TAM, SAM, and SOM](/glossary/tam-sam-som.md) TAM, SAM, and SOM are three nested market-size estimates: the total market, the part you can serve, and the part you can realistically win. * [Total addressable market (TAM)](/glossary/total-addressable-market.md) Total addressable market (TAM) is the total revenue available if every possible customer for your product bought it.