What Is Total Addressable Market (TAM)? How to Calculate + Examples
Salesforce
MARCH 13, 2025
This metric takes into account your supply limits, production capability, and competitors. Example: TAM SAM SOM Let’s say you manufacture baseball bats. Due to supply constraints, your manufacturing facility can only produce 200,000 bats per year. This leaves 2 million customers (or $120 million in revenue) for you.
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