TCV (Total Contract Value)
TCV is the total a customer contract is worth over its full term, including recurring charges and one-time fees.
Updated October 1, 2026
TCV (Total Contract Value) is the full revenue one contract is worth over its whole term. It counts every recurring charge for the length of the deal plus any one-time fees.
How it's calculated
Multiply the recurring value per year by the number of years, then add one-time fees.
TCV = (recurring value per year × years) + one-time fees
A three-year deal at $12,000 per year with a $3,000 onboarding fee has a TCV of $39,000. Its ACV is $12,000, because ACV covers one year and leaves out one-time fees.
TCV vs ACV
- TCV is the whole contract, one-time fees included.
- [ACV](/glossary/acv) is the recurring value of that contract for one year.
A longer contract raises TCV without changing ACV. A large TCV can hide a small yearly amount, so read the two together.
Why it matters
TCV measures the total value of your pipeline and lets you compare deal sizes. It is close to bookings, which record contract value at signing. TCV includes one-time fees and multiple years, so it does not replace ARR or MRR for tracking predictable revenue.