TCV — Total Contract Value
Definition: The total value of a customer contract over its entire term, including one-time and recurring fees.
Example
A 3-year contract at $100K/yr plus $50K setup has a TCV of $350K and an ACV of $100K.
When you'll hear it
TCV shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to total contract value — and they expect the room to already know what that means.
FAQs
What does TCV stand for?
TCV stands for Total Contract Value.
What does TCV mean in business and finance?
The total value of a customer contract over its entire term, including one-time and recurring fees.
Where will I hear TCV used at work?
TCV comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for total contract value, so people assume you already know the term.
Related terms
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