Skip to content
Finance Calc Kit
Business

Software Contract Value Calculator

Calculate Annual Contract Value (ACV), Total Contract Value (TCV), Annual Recurring Revenue (ARR), and per-seat software pricing for SaaS contracts.

Contract details

$
months
$

Total contract value (TCV)

$95,000.00

36 months plus setup fee

Monthly recurring revenue (MRR)

$2,500.00

Annual recurring revenue (ARR)

$30,000.00

Annual contract value (ACV)

$30,000.00

One-time setup fee

$5,000.00

Report tool

SaaS contract value metrics explained

Software and SaaS companies track several contract value metrics to forecast revenue, price deals, and report growth. Monthly recurring revenue (MRR), annual recurring revenue (ARR), annual contract value (ACV), and total contract value (TCV) each answer a different business question about the size and duration of a customer agreement.

Model customer economics with the customer lifetime value calculator. Estimate acquisition efficiency with the customer acquisition cost calculator. For broader revenue planning, try the revenue growth calculator.

Key SaaS metrics

  • MRR: normalized monthly subscription revenue.
  • ARR: MRR multiplied by 12, annualized recurring revenue.
  • ACV: annual contract value, typically ARR for recurring subscriptions.
  • TCV: total contract value including recurring fees over the contract term plus one-time charges.
TCV=(MRR×months)+setup fee\text{TCV} = (\text{MRR} \times \text{months}) + \text{setup fee}

Worked example

A SaaS contract charges $2,500 per month for 36 months with a $5,000 setup fee. MRR is $2,500. ARR and ACV equal $2,500 times 12, or $30,000. TCV equals ($2,500 times 36) plus $5,000, which is $95,000. One-time fees are included in TCV but not in ARR.

Pricing modes

This calculator supports monthly flat pricing, per-seat pricing (price per seat times number of seats), and annual flat pricing (annual rate divided by 12 for MRR). Choose the mode that matches your contract structure.

Frequently asked questions

What is the difference between ARR and ACV?
ARR annualizes recurring monthly revenue. ACV often equals ARR for standard subscriptions, but some companies define ACV differently for multi-year deals. This calculator uses ACV = ARR for recurring revenue.
Are setup fees included in ARR?
No. ARR and ACV reflect recurring subscription revenue only. One-time setup, implementation, or professional services fees are included in TCV but excluded from ARR.
How does per-seat pricing work?
MRR equals the monthly price per seat multiplied by the number of seats. For example, $50 per seat for 50 seats yields $2,500 MRR.
What if my contract is billed annually?
Select annual flat pricing and enter the annual subscription rate. The calculator converts it to MRR by dividing by 12.
Can I share my contract scenario?
Yes. Input changes update the page URL so you can copy and share the link with your team.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.