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Bookings & revenue
ACV and TCV
Annual contract value is a contract's value normalised to one year; total contract value is everything over the full term, including one-time fees.
Owned by: Sales analystTest band: Sales analyst
The formula
ACV = Total recurring contract value ÷ Contract years
In practice
A three-year $300k deal is $100k ACV, $300k TCV. Quotas and ARR run on ACV; cash planning runs on TCV and billing terms.
The kind of thing the test asks
- A three-year contract at $50k a year with a $30k one-time implementation fee. ACV and TCV are…