Enter the total number of accounts in the industry and the annual contract value into the calculator to determine the total addressable market value.

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## Total Addressable Market Formula

The following formula is used to calculate a total addressable market.

TAM = ACC * ACV

- Where TAM is the total addressable market ($)
- ACC is the total number of accounts in the entire industry
- ACV is the annual contract value

To calculate the total addressable market, multiply the number of accounts in the entire industry by the average annual contract value.

## Total Addressable Market Definition

A total addressable market 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.

## Total Addressable Market Example

How to calculate a total addressable market?

**First, determine the total number of accounts.**This is the total number of accounts in the entire industry.

**Next, determine the annual contract value.**Determine the annual contract value of each account.

**Finally, calculate the TAM.**Calculate the total addressable market using the equation above.

## FAQ

**What is TAM?**

TAM stands for total addressable market and is one metric used to describe the market size of an industry or segment.