Definition The total possible revenue available if a product captured 100% of the market it could theoretically serve.
Also called TAM, Total addressable market
Example 50,000 potential business customers × €2,000 a year gives a TAM of €100m.
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Choose your role to see what this term means in your work.
Why it matters It shows how big an opportunity could become.
Where it is used Business plans, investor decks and market research.
How to calculate it Number of potential customers × average annual revenue per customer
Worked example 50,000 potential business customers × €2,000 a year gives a TAM of €100m.
