What is Total Contract Value?
Full value of a contract over its lifetime.
How to calculate it
Calculate Total Contract Value as: Sum of all revenue over the contract term. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
A 3-year deal at $30,000/year plus a $5,000 setup fee = $95,000 TCV.
Example 2
A three-year deal at $30,000 per year plus a $5,000 setup fee -> $95,000 TCV, against a $30,000 ACV that shows the per-year value.
Why it matters
Total contract value (TCV) is the full value of a contract over its lifetime, including recurring and one-time fees, and captures the complete worth of a multi-year commitment. It matters for understanding cash potential and customer commitment depth. Mixing recurring and one-time components without labeling them makes TCV hard to interpret.
Benchmark context
Pair TCV with ACV for comparability; a high TCV from a long term is not the same as high annual value, so read them together.
Common pitfalls
Mixing recurring and one-time without labels.
Related KPI guides
Turn KPI definitions into governed dashboards
Metricwise helps teams define metrics once, reuse them across dashboards, and ask trusted business questions in plain English.
Get Started