Acronyms Dictionary
TCV
Definition
Total Contract Value. A metric representing the total value of a customer contract over its duration.
Deep Dive
TCV is a sales metric that includes the total revenue a contract will generate over its entire life, including one-time fees (implementation, training) and recurring fees. Unlike ACV (Annual), TCV looks at the "big picture" of a deal's value.
Examples & Use Cases
- 1A three-year contract with a $10,000 annual fee and a $5,000 setup fee has a $35,000 TCV
- 2A company focusing on "High TCV" deals to ensure long-term revenue stability
- 3Sales reps being incentivized based on the TCV of the deals they close
Related Terms
ACVARRRevenue