Average Contract Value (ACV)

SaaS

Deals

What is Average Contract Value ?

The Average Contract Value is the amount an average subscription contract is worth to your company. There tends to be less universal consensus on the definition of ACV compared to some other metrics, as some companies include one-time initial charges like setup or training in their ACV calculations, while others do not. For the matter of uniformity, we do not include one-time charges in the calculation of the ACV.

Average Contract Value Formula

ACV = sum(Value of all customer contracts) / (count(Number of customers under contract))

Average Contract Value Unit

Average Contract Value is stated in the unit EUR (€).

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More about Average Contract Value

Average Contract Value (ACV) is a crucial metric for businesses, particularly those operating in the B2B sector, as it provides insight into the average revenue generated from each customer contract over a specified period. Understanding ACV helps companies assess the effectiveness of their sales strategies, set realistic revenue targets, and improve their overall financial planning.

How to visualize Average Contract Value?

The KPI Average Contract Value (ACV) can be visualized as a data card, showing the current value. Or you can use bar charts to see trends and to compare your current value with previous time periods.

Average Contract Value visualization examples

Average Contract Value

Average Contract Value

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Average Contract Value

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