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ACV FAQ

Metrics beginner FOUNDERCFO

Quick answers to the most common questions about ACV. For the full definition, formula, and benchmarks, see the ACV glossary page.

What is the meaning of ACV in SaaS?

In SaaS, the meaning of ACV is the average annualized value of a single customer contract — a multi-year deal's total value divided by its number of years. It is often compared with ARR, which sums recurring revenue across all customers.

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Keep exploring ACV

ACV is annual contract value, the annualized revenue value of a customer contract. Read the full ACV definition for formulas, benchmarks, and common mistakes.

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