Revenue Metrics

Total Contract Value (TCV)

The total revenue committed in a contract over its entire term, including one-time and recurring fees.

TCV represents the full dollar value of what a customer has committed to pay, from signature to contract end. Unlike ACV, TCV includes everything: recurring subscription fees, implementation fees, professional services, and any other one-time charges. This makes TCV a useful measure of total economic commitment, but less useful for forecasting ongoing revenue since it mixes recurring and non-recurring components. TCV is particularly relevant for enterprise sales teams that close large upfront implementation projects alongside recurring licenses. Investors and operators care more about the recurring component (which feeds ARR), but sales leaders often track TCV alongside ACV to measure the total bookings contribution of their team.