Total Contract Value (TCV) Calculator
Replace the sample values with your own, in one currency and one reporting period. Enter percentages as whole numbers: 2 for 2%. Calculations run in your browser.
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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What TCV measures
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.
Prepare your inputs
- Identify the enforceable contract term and recurring fees committed during that term.
- Add one-time contract charges such as setup or implementation when they belong in your chosen TCV convention.
- Keep optional extensions and uncommitted usage outside the committed value. For changing annual fees, sum the actual schedule instead of using a flat-price shortcut.
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. |
Check the sample calculation
Worked example
- ACV
- $12,000
- Contract Length (years)
- 3
- One-Time Fees
- $2,000
- → TCV
- $38,000
Before using the result
- The calculator assumes a constant recurring ACV over the term. For ramped pricing, use the sum of the scheduled recurring fees.
- TCV is not lifetime value: one measures a contract commitment, while the other estimates a customer relationship beyond a single contract.
- Expected usage and optional renewals should be labeled as forecasts if they are not committed amounts.
A dash means the result is undefined for the inputs, such as division by zero. Review the assumptions and input errors before interpreting it.
Read the TCV guide for a business scenario, interpretation, and frequently asked questions.
Sources and methodology
The references below explain the underlying methods. Our worked scenarios use hypothetical figures; they are not company results or current market benchmarks.
- Stripe: Total contract value
Recurring commitments and one-time contract fees.
Found an error or a definition that differs from your reporting? Send a correction with the page URL and the method you use.