Annual Contract Value

Definitions

1. The yearly value of a customer contract, excluding one-time fees unless a company defines it otherwise. ACV is often used to compare deal sizes in enterprise sales.

   In plain English: How much a contract is worth per year.

   Example: "The average annual contract value doubled after the team moved upmarket."

Related Terms

• ARR
• Land and Expand
• Cross-Sell
• Dollar Retention
• Gross Retention
• Monthly Recurring Revenue
• Annual Recurring Revenue
• Net MRR
• Net New ARR
• Net Retention
• Upsell