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Software Contract Value Calculator

Finance

Calculate a software contract's annual (ACV) and total (TCV) value from price, seats, discount, and duration.

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USD
$0.00$1,000,000.00
11,000,000
%
0%100%
0.120

Annual Contract Value (ACV)

$10,800.00

The value of this contract normalized to a single year.

USD

Discounted Price per Seat

$45.00

Monthly Cost

$900.00

Total Contract Value (TCV)

$21,600.00

The full value of this contract across its entire duration.

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

How is software contract value calculated?

Discounted Price = Retail Price x (1 - Discount). Monthly Cost = Discounted Price x Seats. ACV = Monthly Cost x 12. TCV = ACV x Contract Duration in years.

What is the difference between ACV and TCV?

ACV (Annual Contract Value) normalizes a deal to a one-year value, useful for comparing contracts of different lengths. TCV (Total Contract Value) is the full value of the deal across its entire term.

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