What Is Market Share?
Market share is the portion of total sales in a market or industry that is earned by a single company over a specific period. It is one of the most widely used metrics in business strategy because it shows how a company performs relative to its competitors and the market as a whole. A growing market share usually signals competitive strength, while a shrinking share can be an early warning of trouble.
How to Use This Calculator
Enter two numbers: your company sales (revenue or units sold by your business) and the total market sales (the combined sales of every company in that market, including yours). Make sure both figures cover the same time period and use the same unit — either dollars or units, but not a mix. The calculator instantly returns your market share percentage, along with how much of the market your competitors hold.
The Formula Explained
The market share formula is simple division turned into a percentage:
$$\text{Market Share \%} = \frac{\text{Company Sales}}{\text{Total Market Sales}} \times 100$$
The fraction tells you what proportion of the market belongs to your company, and multiplying by 100 converts that proportion into an easy-to-read percentage. The remaining percentage (100 minus your share) is the combined share of all competitors.
Worked Example
Suppose your company recorded $250,000 in sales last quarter, while the entire market generated $1,000,000 in sales over the same quarter. Your market share is $$(250{,}000 \div 1{,}000{,}000) \times 100 = 25\%$$ That means competitors collectively hold the other 75%, equal to $750,000 in sales.
FAQ
Can I use units instead of revenue? Yes. Market share can be measured by revenue (value) or by units sold (volume). Just keep both inputs in the same unit.
What is a good market share? It depends on the industry. In a fragmented market, even 10% may make you a leader, while in a concentrated market a leader might hold 40% or more.
Why is my total market sales figure important? Your share is meaningless without an accurate market size estimate. Use industry reports or trade data to get a reliable total market sales number.
