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Revenue

ACV calculator

Enter a contract's total value, any one-off fees inside it, and its length. The calculator gives the annual contract value.

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Annual contract value

$28,000

Recurring value of the contract
$84,000

How to read the result

ACV lets you compare contracts of different lengths. Companies differ on whether to include one-off fees, so say which convention you use when you report it.

The formula

Revenue

ACV = (total contract value − one-off fees) ÷ contract length in years.

The same sum the calculator above runs

Frequently asked questions

ACV describes one contract. ARR adds up the recurring value of every active contract at a point in time.

Enter the length as a fraction, such as 0.5 for six months. The result is the annualised value.

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