TCV Calculator
TCV is total contract value, the full revenue value of a customer contract over its entire term, including recurring fees for all years plus one-time charges.
TCV = (ACV × Contract Years) + One-Time Fees | Variable | Meaning |
|---|---|
ACV | Annual contract value of the recurring portion. |
Contract Years | Length of the contract term in years. |
One-Time Fees | Non-recurring charges such as setup, implementation, or training. |
Worked example
- ACV
- $12,000
- Contract Length (years)
- 3
- One-Time Fees
- $2,000
- → TCV
- $38,000
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TCV Formula
TCV = (ACV × Contract Years) + One-Time Fees | Variable | Meaning |
|---|---|
ACV | Annual contract value of the recurring portion. |
Contract Years | Length of the contract term in years. |
One-Time Fees | Non-recurring charges such as setup, implementation, or training. |
How to Calculate TCV
Worked example
- ACV
- $12,000
- Contract Length (years)
- 3
- One-Time Fees
- $2,000
- → TCV
- $38,000
Full definition, benchmarks, and common mistakes live on the TCV glossary page ; quick answers are in the TCV FAQ .