Total Contract Value

Also called TCV

Total contract value: the full value of a customer contract over its entire term, including one-off fees, not just the annual portion.

Why it matters

TCV captures the whole commitment, useful for multi-year enterprise deals where ACV alone understates the relationship. Keep it distinct from ACV so you do not overstate recurring revenue.

For example

A three-year deal at 3 lakh a year plus a 1 lakh setup fee has a total contract value of 10 lakh, versus a 3 lakh ACV.

Go deeper

16 More Startup Metrics a16z · article Total Contract Value is defined here among the core startup metrics investors actually track, with how to read it honestly. Open a16z.com →

Related terms

Also in Starting Up

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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