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ACV (average contract value)

ACV (average contract value)

Noun
[av-er-ij kon-trakt val-yoo]

Also sometimes known as annual contract value, ACV is a key metric in B2B SaaS that measures the average value of a single customer over the period of one year. This sales metric is especially useful for SaaS companies that have multi-year contracts with their customers.

ACV is calculated by dividing the total contract value by the number of years in the contract.

Example:

Identifying businesses with a similar ACV can be a good way to find mutually beneficial partnership opportunities.

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[aw-thuh-rahyzd pahrt-ner]
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[uhd kli-ck]