Sales / SaaS Metrics
Annual Contract Value vs Total Contract Value ACV, TCV
The yearly value of a deal versus the whole value of the deal across its entire term.
The fork, why two teams get different numbers
ACV annualizes a contract's recurring value; TCV totals everything contracted over the full term including one-time fees.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: SaaS/RevOps convention · ASC 606 allocation of transaction price to performance obligations