How many companies should you apply to in campus placement? (and how to decide)

This question causes a lot of stress so let's discuss it properly.

There is no single right number. But here is a useful way to think about it:

Tiering your target companies

• Tier 1 (dream companies): 2–3 companies where you'd be genuinely excited to work. Invest real preparation time on these.
• Tier 2 (good options): 4–6 companies that match your skills and goals. Moderate prep, customise your answers.
• Tier 3 (backup): A few mass recruiters with lower bars. Apply but don't rely on them.

Applying to 40 companies without research gets you nowhere useful. Applying to 8–12 with real preparation gives you much better odds and a better mental state.

The rule I used: don't apply to any company you couldn't answer "why this company?" for in 30 seconds without reading your notes.

What's everyone else's approach? Curious whether people who applied to fewer or more companies had better results.