Total Contract Value (TCV) is the total revenue a company expects to earn from a customer over the entire length of their contract. This includes subscription fees, one-time payments, and any other charges agreed upon in the deal.
It’s a helpful metric for understanding the full financial value of a deal — especially when contracts span multiple years or include additional services.
Example:
If a customer signs a 3-year contract worth €30,000 per year, the TCV is €90,000. If there’s a one-time onboarding fee of €5,000, the TCV becomes €95,000.
While ACV focuses on yearly revenue, TCV shows the big picture. Companies often use both to track growth and plan resources — ACV for recurring revenue, and TCV to understand total deal value.