All termsFINANCE & PRICING

TCV

Total Contract Value

Also known as: Total Contract Value

DEFINITION

The total revenue a signed contract will generate over its full duration, including discounts, services, and any committed add-ons.

In depth

TCV gives sales teams bragging rights but is the least useful number for operators. It counts years of future revenue as if it were already earned. For decision-making, ARR (current run rate) and ACV (annualised) are better.

Related terms

ARR
The yearly version of MRR — the total recurring subscription revenue a SaaS would earn over 12 months at today's run rate.
ACV
The average annualised revenue per contract — used to compare deals across customers regardless of contract length.

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Last reviewed 14 April 2026 by Abhi Verma.