Market Size Calculator

How to Use the Calculator – Step-by-Step

1. Enter Total Number of Potential Customers:
   Input the total number of potential customers in your target market, based on market research or estimates.

2. Enter Average Revenue Per Customer:
   Input the average revenue your business generates per customer to estimate the total market value.

3. Enter Target Market Penetration Rate (%):
   Input the percentage of the market you plan to reach, considering factors like location, competition, and business capabilities.

4. Enter Expected Market Share (%):
   Input the percentage of the market you realistically expect to capture based on your sales strategy.

5. Click ‘Calculate’:
   Instantly view your Market Size, SAM, and SOM values, which will help you understand your market potential and strategy.

Understanding Market Size, SAM, and SOM

• Market Size: The total revenue potential from your entire target market.

• Serviceable Available Market (SAM): The portion of the total market that your product or service can serve, considering factors like market penetration.

• Serviceable Obtainable Market (SOM): The portion of SAM that your business can realistically capture, considering your resources, competition, and market conditions.

Industry Benchmarks for Market Size (Example)

Note: These figures are examples and can vary depending on your product, market, and geographical location. Always use industry-specific data to make informed business decisions.

Practical Example

Scenario:

• Total Number of Potential Customers: 10,000

• Average Revenue Per Customer: ₹5,000

• Target Market Penetration Rate: 20%

• Expected Market Share: 10%

Calculation:

• Market Size:
  ₹10,000 * ₹5,000 = ₹50,000,000

• Serviceable Available Market (SAM):
  ₹50,000,000 * (20 / 100) = ₹10,000,000

• Serviceable Obtainable Market (SOM):
  ₹10,000,000 * (10 / 100) = ₹1,000,000

Interpretation:

Your total market size is ₹50,000,000, but based on the expected penetration and market share, your obtainable market is ₹1,000,000. This represents the realistic revenue you can expect to generate with your current resources and strategy.

Tips to Optimize Market Share

• Improve Product Market Fit:
  Ensure your product solves real customer problems to increase adoption.
• Focus on High-Value Segments:
  Prioritize targeting high-value customers within your target market.
• Adapt Marketing Strategies:
  Continuously adjust marketing tactics based on performance and market feedback.