• Quick and Dirty Back of the Envelope Calculator

    This calculation is a very rough estimate to judge the viability of your new business idea. You could use it in your decision to whether or not you should pursue this business idea. Probably most of the numbers you provide here are based on assumptions that need to be tested.

  • For an explanation of some of the variables, see below the calculator

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    Start the calculator by filling out the input fields

  • Definitions of some of the variables

    TAM, SAM and SOM
    Acronyms that represents different subsets of a market. Read more.

    TAM or Total Available Market is the total market demand for a product or service.
    SAM or Serviceable Available Market is the segment of the TAM targeted by your products and services which is within your geographical reach.
    SOM or Serviceable Obtainable Market is the portion of SAM that you can capture.

     

    Profit margin
    This is the percentage of profit after deducting all costs (both fixed as well as variable costs) except co-founder salary. Profits are used to pay co-founders a monthly salary. I know this is really quick and dirty...

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