Total value of all contracts/number of years

[[email protected]]

Depending on your preference, you can add one-time purchases to the total value, although many companies leave those out and only use the income generated by recurring subscriptions.

For example, if Person A takes a SaaS annual france phone numbers subscription contract active for four years, and the total value of the contract is $120,000, then you can calculate the ACV like so:


= 120,000 ÷ 4

= $30,000

If your customer takes a monthly subscription contract, you can still calculate ACV, but you first need to calculate the annual value by multiplying the monthly subscription fee by 12.

Person B, for example, takes a monthly subscription, paying $60 per month for a 3-year contract. To get the ACV of person B, first calculate the annual subscription value and then multiply it by 3 to get the total contract value.

Annual subscription value = $60 * 12 = $720

Total contract value = $720 * 3 = $2,160

With the total contract value, you can now calculate the ACV as follows:

ACV = Total value of all contracts / Number of years

= 2,160 ÷ 3

= $840

If a customer opens multiple contracts with different values and durations, you want to calculate the ACV of each contract, add the values to get the total ACV, and divide that number by the number of contracts.

ACV (multiple contracts) = Total ACV of all contracts / number of contracts